Key Takeaways：
• Net buying intentions across Asia Pacific reached a four-year high in 2026.
• Office properties have re-emerged as the most preferred asset class for the first time in six years.
• Tokyo ranks first for cross-border investment for the seventh consecutive year, followed by Sydney.
• Capital is flowing back into core cities and prime assets amid improving rental outlooks.
• Supply constraints and easing financing conditions are reinforcing investor confidence.
1. Asia Pacific Real Estate Net Buying Intentions Hit Four-Year High
In Coldwell Banker Richard Ellis (CBRE)’s 2026 survey, net buying intentions climbed from 13% in 2025 to 17% in 2026, signaling greater optimism among institutional and cross-border investors. This shift is supported by stronger rental outlooks, tightening of quality supply in several markets, and gradually improving lending conditions.
Investors cited enhanced leasing activity, particularly in office markets across major cities, as a key driver for renewed buying interest. For the first time in six years, office property overtook other sectors to become the most preferred asset class in the Asia Pacific region.
2. Core City Focus: Tokyo and Sydney Lead Investor Rankings
Among the preferred destinations for foreign real estate capital:
• Tokyo topped the list for cross-border investment for the seventh consecutive year, primarily due to its comparatively low financing costs and stable cash flows.
• Sydney secured the second position, reflecting strong investor confidence in Australia’s premier Central Business District (CBD) markets.
• Singapore and Seoul tied for third place, while Hong Kong climbed back into the top five, buoyed by renewed interest in living and hotel sectors.
These patterns highlight the continued appeal of developed, transparent property markets where leasing fundamentals and long-term demand remain resilient.
3. Asset Strategy: Offices and Core Assets Re-emerge
The resurgence of office properties as a preferred asset class for investors is notable. After years of subdued activity, leasing demand in key cities has improved, lifting the asset class back into prominence. Combined with data showing increased cross-border transactions and higher allocation toward core and core-plus
strategies, the data suggest that investors are positioning for sustained rental growth and long-term stability.
Commercial real estate transactions in core Asia Pacific markets also increased in 2025, with total investment activity showing double-digit growth in some segments, further underscoring improving market sentiment.
4. Macro and Micro Tailwinds Supporting Investment Confidence
Macro Drivers
• Improved rental forecasts and occupier demand bolster investor confidence.
• Supply constraints in core markets amplify the value of high-quality assets.
• Gradual easing in financing conditions provides better entry points for institutional capital.
Micro Drivers
• Limited new development pipelines enhance scarcity value.
• Increased transaction activity improves liquidity and market depth.
• Shift toward core-plus and value-add strategies points to refined investor selection criteria.
5. Risks and Challenges Remain
Despite the overall positive outlook, investors identified persistent headwinds:
• Construction and labor cost inflation, particularly acute in Australia, Japan, and Singapore.
• Geopolitical and economic uncertainty, especially among Chinese and Indian capital.
• Mainland China asset markets remain net sellers overall, despite improved purchase intentions.
These factors contribute to a cautious but constructive investment environment.
6. Invest Strategy: Practical Guidance for Allocators
Portfolio strategies that remain relevant amid these conditions include:
• Priority on core city assets such as Tokyo, Sydney, and Singapore, which offer liquidity, transparency, and resilient cash flows.
• Focus on office and long-term lease segments, where rental fundamentals have improved.
• Diversification into alternative sectors, such as hospitality, data centers, and living assets, which are gaining traction.
• Risk management through mult-market exposure and sensitivity to financing cycles and geopolitical shifts.
Conclusion
The resurgence of real estate investment sentiment in the Asia Pacific region reflects a structural recalibration in investor priorities—from defensive postures to targeted allocations in core markets and assets. With 2026 marking the highest net buying intentions in four years, key property sectors and cities are poised to benefit from renewed capital flows, creating compelling real estate opportunities for long-term investors.
