Asia-Pacific real estate buying plans hit four-year high for 2026: CBRE survey

Investor appetite for Asia Pacific real estate strengthened for 2026, with net buying intentions reaching their highest level in four years, according to a CBRE survey published last week.Improved rental prospects, fewer new projects coming to market and easing financing conditions helped lift sentiment.Offices became the top choice among investors for the first time in six years as leasing demand recovered across key markets. Investment activity in the region has remained muted in recent years, pressured by rising interest rates, tighter lending conditions and ongoing changes in office usage.

Heightened geopolitical risks and unstable financial markets have also kept investors cautious.For 2026, the share of investors planning to increase purchases compared with sales rose to 17%, up from 13% a year earlier. Stronger buying interest was seen in South Korea, Australia and Singapore, while Japan continued to attract steady demand. Although mainland China remained a net seller, investor intentions to buy there improved by 11% from the previous year.

Tokyo continued to lead as the most attractive destination for cross-border real estate investment for the seventh year in a row, helped by low borrowing costs. Sydney followed in second place, with Singapore and Seoul sharing third position. Hong Kong ranked fifth after returning to the top tier, supported by renewed interest, especially from mainland Chinese investors, in residential living and hotel assets.The survey, as cited by Reuters, collected responses from 442 investors, including private equity firms, sovereign wealth funds and insurance companies. Within the office sector, Singapore joined Australia, Japan and South Korea as markets offering strong rental growth, making them key targets for investment. Companies in Greater China also stepped up purchases of office buildings for their own use, particularly in Hong Kong.Rising construction and labour expenses were identified as the biggest challenge for investors in 2026, marking the first time this issue ranked at the top. Cost pressures were most noticeable in Australia, Japan and Singapore, where commercial real estate construction costs have increased sharply since 2020.Geopolitical risks remained a concern for investors from China and India, while mainland Chinese investors were most worried about domestic economic conditions.