Report | Intelligent Investment
Q1 2026 Asia Pacific Cap Rate Survey
April 30, 2026 5 Minute Read
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CBRE professionals in Asia Pacific note that while sentiment has softened compared with six months ago amid geopolitical tension and elevated interest rate risk*, it remains well above pandemic-era levels. The results reflect steady leasing demand and continued investment appetite across most markets.
Buying intentions are the most prevalent in Hong Kong SAR, while mainland China saw a large increase, amid a substantial degree of asset repricing that has taken place in the market. Buying intentions also increased among institutional investors.
Occupier fundamentals are viewed as most favourable to investment sentiment, while geopolitical concerns and potential interest rate hikes are the top challenges faced by investors.
Respondents view Grade A offices as the most preferred sector for investment, with interest in institutional-grade modern logistics also increasing from six months ago. Real estate debt and student housing are the most attractive alternative sectors, with interest in student housing surging in mainland China.
Cap rates in Australia are facing upward pressure, while there is less room for compression in Japan. Cap rates in mainland China continue to stabilise.
*This edition’s survey was conducted from March 16, 2026 to March 31, 2026, after the outbreak of conflict in the Middle East, but before the ceasefire took effect in early April.
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Research Contacts
Capital Markets Contacts
Greg Hyland
Head of Capital Markets, Asia Pacific
Callum Young
Executive Director, Capital Markets, Asia Pacific
Valuation & Advisory Services Contacts
Duncan Guthrie
Senior Managing Director, Valuations & Advisory Services
