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The Property Technology Paradoxes for 2026 report is now available.

Yardi’s latest report explores how real estate leaders across Asia Pacific are navigating the contradictions shaping technology adoption – from AI and cybersecurity to investment priorities and operational resilience.

Drawing on survey insights and perspectives from senior executives across the region, the report highlights key trends, emerging challenges and how organisations are balancing innovation with caution in a rapidly changing market.

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Tokyo Trip, Dec 2025, Executive Summary

  • Our December 2025 visit to Tokyo confirms that Japan’s real estate cycle remains unusually robust, underpinned by structural labour scarcity, constrained supply, and a broad-based acceptance of inflation. Despite rising interest rates, operating fundamentals across key sectors—particularly office, hotels, and urban retail—continue to strengthen, supporting earnings growth and capital discipline across both J-REITs and developers.
  • The dominant macro driver is Japan’s exceptionally tight labour market. Workforce shortages are reshaping tenant behaviour, with corporates increasingly prioritisng high-quality, centrally located offices to attract and retain talent. This has driven prime Tokyo office vacancy below 2.5% and rent growth above 5% YoY, with new supply in 2026–27 largely pre-leased. Importantly, escalating construction costs and labour shortages are delaying the typical supply response, suggesting that favourable supply–demand dynamics are likely to persist longer than in past cycles.
  • Rising inflation is now widely accepted across Japanese society, marking a structural break from decades of deflation. This shift is enabling landlords to push through rent increases more consistently, including in traditionally tenant-protective residential markets. CPI-linked rent clauses are beginning to appear beyond logistics and into office leases, improving the inflation resilience of cash flows.
  • Capital markets activity remains strong despite higher yields. Tokyo was the world’s largest real estate investment market in 2024, and transaction volumes remain elevated in 2025, supported by landmark deals from global private equity. Cap rates have compressed even as 10-year JGB yields approach 2%, highlighting the depth of investor demand for Japanese real assets. Within listed markets, J-REITs have responded rationally by recycling capital, selling non-core assets, and executing record share buybacks, demonstrating improved cost-of-capital awareness.
  • Developers have been standout performers, benefiting from inflation-linked business models and meaningful progress on corporate governance. Mitsubishi Estate, Mitsui Fudosan, and Sumitomo Realty have all delivered exceptional shareholder returns in 2025, supported by aggressive buybacks and asset disposals. Governance reforms—particularly Mitsubishi Estate’s explicit 10% ROE target—have materially improved investor confidence.
  • Looking ahead, we believe the listed real estate rally still has room to run. Sustained rent growth, delayed supply, disciplined capital allocation, and improving governance provide a supportive backdrop. However, selectivity is critical within the J-REIT universe: rising interest costs will increasingly differentiate those able to grow earnings from those that cannot. Overall, Japan’s listed real estate sector has emerged more resilient, more disciplined, and better positioned for the next phase of the cycle.
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Asia Pacific’s real assets industry staged a decisive rebound in 2025, outperforming amid macro uncertainty as stabilising financial conditions, supply constraints, and structural demand drivers restored pricing power and investor confidence. Across the region, rental growth re-emerged, REITs regained favour, and capital increasingly rotated toward assets aligned with decarbonisation, digital infrastructure, and long-term income resilience. As the market looks toward 2026, performance is being driven less by sentiment and more by fundamentals, setting up a more durable and disciplined phase of growth for real assets in the region.

APREA TrendWatch December2025
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Asian real estate securities saw strong performance in 2025, but face new headwinds as interest rate expectations shift. While Singapore continues to benefit from falling rates, Japan and Australia are confronting inflationary pressures and potential monetary tightening. Market dynamics remain highly regional, with significant differences in fundamentals and policy.

Key Regional Insights

Japan:

  • BOJ expected to hike rates soon amid persistent core inflation and weak JPY.
  • Labor shortages raising construction costs; strong rent growth across prime office markets.
  • Landlords now successfully introducing CPI-based escalations in fixed leases.
  • Near-zero vacancy rates point to continued rental upside.

Australia:

  • Strong economic data has pushed back rate cut expectations, with some forecasts now pointing to hikes.
  • Residential REITs still supported by demand and demographics but may face short-term consolidation.
  • Goodman Group could outperform in short term; exited position in National Storage after fair M&A offer.
  • M&A activity likely to continue — Abacus Storage King seen as a potential target.

Singapore:

  • Rates continue to fall, helping REIT earnings and facilitating acquisitions.
  • MAS’s EQDP program supports smaller listed companies, including REITs.
  • SREITs are attractive due to lower rate risk, strong fundamentals, and favorable currency outlook.
  • Parkway Life REIT set for 32% DPU uplift in 2026 from 2021; CICT and Frasers Centerpoint also favored.

Hong Kong:

  • Fed’s December rate cut had little market impact; much already priced in.
  • Residential and retail recovery expected in 2026; office remains sluggish but owner-occupier deals are a positive sign.
  • Hongkong Land continues to outperform via asset sales and capital return strategies.
  • New REIT initiatives like REIT Connect could be future catalysts.
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Please find below the rebalancing results (effective 22 December 2025 start of trading) for the:

GPR/APREA Investable 100 Index
GPR/APREA Investable REIT 100 Index
GPR/APREA Composite Index
GPR/APREA Composite REIT Index (indicated with an asterisk)

GPR/APREA Investable 100 Index

INCLUSIONS

AUSCenturia Industrial REIT
AUSIngenia Communities Group
IDNPT Surya Semesta Internusa Tbk
JPNDaiwa Office Investment Corporation

EXCLUSIONS

CHNShimao Group Holdings Limited
JPNJapan Logistics Fund
TWNAdvancetek Enterprise Co Limited
TWNYungshin Construction & Development Co. Limited

GPR/APREA Investable REIT 100 Index

INCLUSIONS

AUSAspen Group
MYSAxis REIT
PHLRL Commercial REIT

EXCLUSIONS

JPNMarimo Regional Revitalization REIT Inc.
NZLKiwi Property Group Limited
NZLPrecinct Properties NZ Limited & Precinct Properties Investments Limited

GPR/APREA Composite Index

INCLUSIONS

CHNChina Agri-Products Exchange Limited
IDNAxis REITPT Citra Putra Realty TbkAxis REIT
IDNPT Total Bangun Persada Tbk
INDRBrigade Hotel Ventures
INDKnowledge Realty Trust *
SGPCapitaLand Investment Limited
SGPCenturion Accommodation REIT *

EXCLUSIONS

CHNKWG Group Holding Limited
CHNMinmetals Land Limited
CHNPowerlong Real Estate Holdings Limited
CHNWanda Hotel Development Co. Limited
PHLVista Land & Lifescapes Inc.
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APAC is entering a new investment cycle, and APREA’s flagship conference, the Asia Pacific Real Assets Leaders’ Congress, examined how this momentum is reshaping strategies, capital flows, and long-term priorities.

Key highlights:

  • High-growth sectors such as data centres, logistics, student housing, and multifamily are becoming areas of focus, where demand is rising faster than supply and investors see real room to scale.
  • Markets including India, Japan, and Singapore stood out as engines of opportunity, combining strong fundamentals with policy shifts that are unlocking new pathways for long-term capital.
  • Infrastructure is becoming the next frontier, with the energy transition and digital connectivity expanding the scope of what investors consider essential, investable, and transformative.
  • As sustainability becomes inseparable from value creation, capital is increasingly flowing to assets that can deliver both performance and long-term positive impact.
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Welcome to the inaugural APAC Investment Atlas, your strategic guide to commercial real estate investment across Asia Pacific. This report leverages Cushman & Wakefield’s proprietary TIME Score and Fair Value Index (FVI) to provide clarity on market cycles, pricing, and sector trends—empowering investors to make confident, data-driven decisions.

Market Overview: Resilience Amid Transition

Investor sentiment has improved, supported by recent rate cuts in several markets and liquid debt conditions. The near-term outlook remains mixed amid volatility, but activity and deal sizes have been rising.

TIME Score: Pinpointing the Cycle

The TIME Score (Timing the Investment Market Entry/Exit) is a forward-looking measure that helps investors identify where each market sits in the property cycle. With APAC’s all-property TIME Score trending upwards (currently 3.1), many markets are moving past stabilisation and into early growth phases. This signals a compelling window for strategic investment key markets including Australia, Singapore, and Japan.

The TIME Score distils multiple indicators into a single metric that reflects cycle stage (from downturn through inflection to recovery). It provides a practical framework to time market entry and exit across geographies and sectors.

Fair Value Index: Where Value Meets Strategy

The Fair Value Index (FVI) assesses the relative attractiveness of current pricing in prime office, retail, and industrial markets against long-term expected returns and risk-adjusted benchmarks. Across APAC, most tracked office and industrial markets are underpriced, offering attractive entry points. The APAC FVI stood at 62.5 in Q3 2025, up from 60.4 in Q1, with 46% of tracked markets underpriced and 63% of logistics & industrial markets underpriced. Australia’s logistics & industrial, Singapore’s prime office, and select retail assets stand out for relative value and forward growth prospects. 

The FVI compares current market pricing with modelled fair value to indicate where pricing dislocation creates opportunity. Higher FVI scores signal broader under-pricing (more compelling value), while lower scores indicates that more markets are fully priced.  

Strategic Themes

  • Core & Core-Plus: Prime CBD offices in low-vacancy markets; modern logistics facilities in supply-constrained nodes.
  • Value-Add: Reposition office stock with low ESG credentials; infill and upgrade in logistics; retail assets with positive rental reversions.
  • Sector Sweet Spot: Logistics & Industrial continues to outperform on structural demand and constrained supply; selected repricing opportunities in office and retail assets.
  • Cross-Border Capital: Growing interest from global investors into Asia Pacific, with increasing focus on platform-building in data centres, living, self-storage, and life sciences.
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Asia Pacific REITs are showing renewed momentum, with rising index performance, signs of recovery in key markets, and growing interest in sectors such as logistics, data centres, hotels, and healthcare. Technology and AI, better portfolio diversification, and increased focus on ESG are reshaping REIT strategies and narrowing the gap with US and European peers.

In our latest issue of APREA TrendWatch, we unpack these themes to show how APAC REITs are evolving from purely income-focused vehicles into dynamic platforms for long-term growth, innovation, and resilience.

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Institutional investors from the Middle East are pivoting towards the Asia Pacific, channeling capital into real assets as part of long-term diversification, supported by urbanization trends and evolving policy frameworks. The flow is increasingly strategic and theme-driven, with examples spanning renewable energy platforms, targeted infrastructure financing, and rapid build-outs of data centers and AI-related infrastructure, alongside deep partnerships that improve governance and unlock co-investment.

In our latest issue of APREA TrendWatch, we explore how the Middle East–APAC corridor is reshaping markets, where capital is going next, and what it means for investors.

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