Asia Pacific Office Market Insights H1 2025 (Colliers)
Office demand across key markets in Asia Pacific rose by 9.6% year-on-year in H1 2025, reflecting a broader recalibration of workplace strategies and renewed activity.
With moderating inflation and stability in monetary policy, the region presents a promising outlook for occupiers seeking growth.
Evolving priorities are driving demand for flexible, sustainable office spaces.
India, Mainland China and Japan accounted for more than 90 percent of leasing demand.
Singapore, the Philippines and Japan led regional leasing activity.
Strong supply pipeline in 8 of 11 key markets, led by Australia, New Zealand and Japan.
C-REITs returns fell marginally by 0.3% M-o-M in July to underperform the region’s REITs, as well as the SSE Composite, which rose 3.7% in the same period. Offshore listed Chinese REITs also rose by over 6% for a second consecutive month.
Chinese stocks have bounced off their April lows, with ample domestic liquidity sustaining the rally. Markets are reacting positively to recent government moves to curb excessive price wars and overcapacity in some sectors, which could ease deflation and boost corporate earnings. The increase in risk appetite have likely prompted a rotation out of more defensive stocks, like REITs.
The major REIT sectors corrected, with rental housing suffering the largest drop of over 3%. Industrial parks and logistics sectors remained relatively resilient.
From tools to traction: Where real estate tech is heading in 2026
By Bernie Devine, Senior Regional Director, Asia Pacific, Yardi
Last year, artificial intelligence shifted from headline hype to hands-on experimentation – and with it, real estate’s attitude to technology began to change. But will momentum become maturity? Yardi’s annual Proptech Survey tracks how far – and how fast – the sector is really moving.
For more than six years, Yardi has surveyed Asia Pacific real estate leaders on technology adoption – and we’ve confirmed what everyone knows. Real estate lags, rather than leads, on tech adoption.
Surprise twist? Last year real estate made a move.
In 2024, 26% of Asian firms, 27% of Australian firms and 35% in New Zealand had started implementing AI systems. It’s true that only 12–16% had reached the point of an established, growing solution. And implementation isn’t integration. But it’s a start.
So, the gap between testing and traction is what we’re watching this year. Not just who’s using AI, but who’s getting value and how.
Source: Yardi, 2024.
AI climbs the org chart
In 2024, we asked AI to write our emails. In 2025, we’re asking agentic AI to manage our calendars, delegate our tasks and chase us for deadlines.
Picture a digital organisational chart, where agents are assigned tasks, report to other agents, and interact with human counterparts. These agents don’t just assist. They execute, escalate and learn.
We’re already starting to see early examples embedded into real estate. Think agents that triage maintenance requests, manage lease workflows or update records in real time.
This kind of orchestration demands software built to speak fluent AI, so our survey asks: Who’s getting ready to put the agents to work?
The bots are coming (for both sides)
If AI is the frontline change agent, cyber is the fight in the background. Despite this, our 2024 survey found the industry underprepared: 33% of firms in Asia, 37% in Australia and 53% in New Zealand had already faced a cybersecurity incident or data breach.
AI is now in the hands of attackers. Deepfakes are getting harder to spot. Phishing is more sophisticated. And traditional firewalls aren’t built for AI-generated code.
The real estate industry is catching up. Slowly. We’ve tracked a growing investment in auditing and training. But this can’t be a one-and-done exercise, and it can’t be the sole responsibility of the tech team.
This year we want to know: Has your cyber strategy evolved as fast as the threat landscape?
Source: Yardi, 2024.
Real estate hits refresh
In the tech adoption race, real estate has always been the industry tying its shoelaces at the starting line. But not anymore. Maybe. Our 2024 data revealed less resistance to change and more willingness to experiment.
But CIOs are now fielding a new set of questions from their colleagues and the C-suite: “Can we get an AI for that?” It’s a fair question, but often the wrong one. It reveals a lingering mindset: that technology is something to add after the fact, rather than something to build the business on.
We’re looking beyond adoption. We want to know: What is driving real impact?
Over to you
The 2025 Yardi Proptech Survey is now open across Asia, with Australia and New Zealand launching soon. We want to hear what’s changed in the past year and what you’re planning next.
Your insights help your industry to benchmark progress, challenge assumptions and sharpen its collective focus. Tools themselves don’t create traction – smart systems, smart strategies and shared learning do.
Curating Workplace Experience that Matters (Cushman & Wakefield)
In today’s hybrid work era, the office is not just a place to work — it must inspire. Drawing on insights from our Experience Per Square Foot™ (XSF) research and project experience, we explore how a strategic approach to workplace experience, employee wellbeing, and office design can drive engagement and productivity.
Key Insights:
Design inclusive, neurodiverse environments that reflect your culture
Reimagine your office as a flexible, multi-functional space with technology enabled
Create inclusive culture and sustain new ways of working through behavior and change management
Favorable backdrop for Asian REITs as inflation cools in Asia ex-Japan and peaks in Japan.
Weak US labor data and tariff induced economic instability signal potential Fed easing.
Stable to declining inflation across Asia supports RE demand, with high occupancy and rising rents in most sectors.
Asian RE securities may act as equity safe havens in a weak USD environment.
Japan
BOJ closer to rate hike amid elevated inflation assessments.
JREITs have aggressively sold less competitive assets to fund unit buybacks, maintaining performance despite rate concerns.
Rent growth offsets interest expense; preference remains for Office, Hotel, Diversified, and Logistics REITs.
Construction cost increases and regulatory tightening (e.g., Chiyoda ward) may dampen Developer sentiment.
Large developers’ Q1 results are expected strong, but short-term catalysts are limited.
Australia
RBA held rates steady, but recent trimmed mean inflation suggests easing is likely.
FY2025 earnings should meet/exceed guidance, though FY2026 guidance may be conservative due to slower rate cuts.
Goodman Group may underdeliver on guidance due to slow JV/tenant signings for data centers.
Office market shows recovery, with peaking vacancy/incentives—positive for names like Charter Hall, Dexus, and Mirvac.
Hong Kong
Positive momentum across sectors: Lower HIBOR supports funding, stock market and IPO activity improving, which has historically led to increase in office space demand.
2025 Asia Pacific Real Estate Market Outlook Mid-Year Review (CBRE)
The greater-than-expected shift in U.S. trade policy was the major surprise in H1 2025. Although April’s initial shock subsequently calmed after tariffs were lowered and several trade deals were signed, ongoing uncertainty continues to drag on regional economic and business sentiment. As a result, CBRE has revised down its 2025 GDP growth forecast for Asia Pacific from 4.1% to 3.7%.
While U.S. interest rates were unchanged in the first half of 2025, monetary policy in many Asia Pacific economies has turned more stimulative in response to weaker growth. Several central banks implemented more aggressive than expected rate cuts during the period. In Japan, the Bank of Japan (BoJ) may resume rate hikes before the end of the year after the country reached a deal in July with the U.S. on tariffs.
CBRE has upgraded its 2025 full year investment forecast to growth of 10% to 15% on the back of solid investor demand in markets such as Korea, Japan and Singapore. Strong fund raising activity and enlarging positive yield spreads in most markets are likely to provide ongoing support to investment, although yield performance will continue to diverge.
Office sentiment softened in Q2 2025, with most markets reporting a slower enquiries and decision-making. However, office leasing activity could pick up in H2 2025 amid stabilising business confidence and tighter return-to-office mandates. CBRE expects office leasing activity to be on par with that in 2024.
CBRE’s 2025 Asia Pacific Logistics Occupier Survey revealed a decline in optimism, with many tenants planning to right-size portfolios and restructure supply chains. However, logistics leasing volume is expected to remain steady, driven by landlords’ more flexible stance; resilient demand from domestic consumption-related firms and occupiers planning mid-to-long term expansion.
In the retail sector, weak consumer sentiment and subdued discretionary spending prompted retailers to be more cautious towards real estate planning in H1 2025. Retailers’ strong preference for prime core locations will ensure vacancy rates continue to decline but the pace of rental growth will remain mild.
Hotel Average Daily Rates (ADRs) continue to grow in most markets while occupancy is improving as hoteliers adopt different pricing and operational strategies to boost performance. Japan, Korea, Vietnam and India are set to lead Revenue Per Available Room (RevPAR) performance for the full year.
APREA INDIA CONFERENCE 2025 Expanding Horizons | Seeing Beyond
With its strong demographics, structural reforms, and deepening capital markets, India has emerged as a global hotspot for investments. International capital is increasingly looking to India, not just for its growth potential, but also for the scale, resilience, and ambition it offers.
India’s strong pipeline of infrastructure development, growing institutional participation, and a maturing regulatory environment all contribute to a more robust and investable market. the country’s urbanization journey is also fueling demand across a wide range of sectors, from warehousing and data centers to office, retail, and other commercial assets. At the same time, there is growing alignment with global sustainability standards, as stakeholders embrace ESG-driven strategies.
Simply put, India today represents one of the most India’s strong pipeline of infrastructure development, growing institutional participation, and a maturing regulatory environment all contribute to a more robust and investable market. the country’s urbanization journey is also fueling demand across a wide range of sectors, compelling long-term investment stories in the region. These are the highlights and takeaways from the APREA India Conference.
India’s office market has reached a major milestone of 1 billion sq ft in H1 2025, valued at INR 16.07 trillion (USD 187 billion), accounting for 27% of the country’s real estate market.
Growth & Value: India is now the 4th largest office market globally by area. Bengaluru, NCR, and MMR collectively hold 72% of the total office stock value.
Supply & Demand: The supply-demand ratio has declined to 0.41, with Grade A stock making up 53% of the supply and single-digit vacancy rates, indicating robust demand.
Development Landscape: No single developer has an all-India footprint. Office development remains uneven across cities, and residential profitability is undermining commercial supply.
Retrofitting Opportunity: About 30% of India’s office stock is retrofit-ready, mostly located in CBD and SBD zones. Retrofitting can significantly boost rental income, occupancy, and asset value.
Future Outlook: India is on track to hit 2 billion sq ft by 2036–2041, with cities like Hyderabad and Pune leading stock growth in recent years.
Singapore’s industrial real estate sector remained resilient in Q2 2025, supported by growth in trade-related sectors such as wholesale, retail, and transportation & storage. However, vacancy rates rose due to a notable increase in new supply.
Key insights include:
The JTC All Industrial rental index marked its 19th consecutive quarterly increase, rising 0.7% QoQ in Q2 2025, up from 0.5% in Q1.
Rental growth was positive across all segments, led by the multiple-user factory and business park segments.
Industrial occupancy declined marginally to 88.8%, reflecting the impact of new completions.
The price index grew by 1.4% QoQ, slightly slower than the 1.5% growth in Q1, reaching its highest level since Q4 2015, implying a 26.9% increase from its last trough in Q3 2020.
Kemmu Kawai joined Longevity Partners Japan in September 2022 as the Country Director. Based in Tokyo, he oversees all operations and activities in Japan, the Asia-Pacific region and beyond. He brings him more than 16 years of experience in finance where he specialised in real estate and credit investments. Before joining Longevity Partners, he served as a Portfolio Manager at Norinchukin Bank and as Investment Manager at Center Point Development.
