Investment Activity Gains Momentum as Prime Office Demand Strengthens: CBRE’s Mid-Year Asia Pacific Real Estate Outlook

Asia Pacific – August 6, 2026 – Asia Pacific’s commercial real estate market gained momentum in the first half of 2026, with investment activity, office leasing, and rental growth all strengthening across the region, according to CBRE’s 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review.

Commercial real estate investment activity rose 27% year-on-year in H1 2026, with most sectors and markets recording gains. Office investment remained a key contributor, with volumes increasing 29% year-on-year. Singapore led the performance, while volumes improved in Hong Kong SAR and began to stabilise in mainland China.

“The investment market is moving beyond recovery, with investors focusing on markets and asset classes where they can capture income, particularly in cities such as Tokyo, Sydney, and Singapore, where rental growth remains strong,” said Greg Hyland, Head of Capital Markets, Asia Pacific, for CBRE.

Office Leasing Resilience amid Tightening Supply

New Grade A office completions in mature markets fell 38% year-on-year in H1 2026, with supply expected to tighten further as rising construction costs and constrained development pipelines limit new additions. Demand remained strong, driven by AI-related occupiers in Singapore as well as Global Capability Centres in India, which provide business, technology and operational support for global enterprises, while mainland China continued to upgrade to higher-quality space. CBRE expects rental growth and stronger leasing activity through the remainder of the year.

“While geopolitical tensions heightened uncertainty, leasing sentiment across Asia Pacific remained resilient,” said Ada Choi, Head of Research, Asia Pacific, for CBRE. “Demand continues to gravitate toward premium office space in major markets such as Tokyo, Hong Kong SAR, and Sydney, reflecting a sustained focus on talent attraction, workplace quality, and long-term business performance.”

Demand Focused on Prime Logistics Facilities

Logistics leasing volumes are expected to be resilient, though demand is increasingly concentrated in modern, well-located facilities, The performance gap between prime and secondary assets continues to widen. A shrinking development pipeline from 2027 onward points to firmer rents across the region. Greater Tokyo remains a standout market, with rental growth prospects improving, driven by broad-based domestic demand, while conditions in India and Australia are expected to remain more varied amid softer expansion demand and ongoing supply-side pressures.

New-to-Market Brands and Experiential Retail Drive Leasing Demand

The retail sector should benefit from limited new supply and sustained demand for prime retail space in H2 2026. New-to-market Asian brands and the growing adoption of experiential retail are driving leasing activity. Tight availability and strong retailer demand are expected to underpin rental growth in key markets such as Tokyo. Elsewhere, softer non-core demand and pressure on retailer profitability are likely to constrain performance in selected markets. Prime retail assets stand to gain the most as consumer preferences continue to shift toward experience-led environments.

Hotel Average Daily Rates Improve While Occupancy Varies

Although reduced flights from the Middle East and higher fuel costs have constrained occupancy growth, hotels in most markets continue to record year-over-year increases in RevPAR (revenue per available room) by lifting average daily rates. Events and concerts are emerging as key drivers of Asia Pacific hotel performance, generating spikes in occupancy and room rates while creating demand during the low season. Elevated construction costs in developed markets are limiting new supply to high-end product.

To read the full report, click here.

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