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Balanced Momentum: Moderating Growth with Selective Strength
The Asia Pacific Cap Rates Report highlights quarterly cap rate movements across the region, providing a clear benchmark for investment returns and identifying opportunities across the office, retail, and industrial sectors.
Key Highlights:
KEY TAKEAWAYS
Strong tourism inflows and new infrastructure development boost hotel performance in Vietnam; Mumbai outperforms other Indian cities thanks to solid corporate, MICE and domestic demand; Hotel pricing in Goa moderates despite strong performance throughout peak season.
Renewal rates remain high in Australia amid tight availability of super prime space; Solid domestic consumption and flight to quality drive expansionary demand in Japan; Expansionary demand in Vietnam ensures occupancy remains high despite elevated supply.
Leasing sentiment in Mainland China strengthens on expansionary demand from local and international retailers; Market polarisation seen in Korea amid strong inbound demand and flat domestic consumption; Retailer demand in Vietnam strengthens but absence of new CBD supply remains bottleneck.
Domestic capital drives office investment activity in Korea, and competition for logistics assets remains strong; Interest rate hikes in Australia see investors turn from cautiously optimistic to wait-and-see mode; In Hong Kong, market sentiment improves modestly as HIBOR falls; living sector underpins investment activity.
Leasing volume in India reaches record high amid robust demand from Global Capability Centres; Occupiers in Japan prioritise core locations to attract talent amid scarce availability and rising rents; Solid demand pushes down Singapore CBD vacancy to record low despite cautious global outlook.
FY26 saw a recovery in deal activity after two relatively subdued years.
Total reported deal value rose 13% and 16% over FY24 and FY25, respectively. Unlike prior years, activity was more evenly distributed, with no single transaction dominating the landscape
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.
Kemmu Kawai
Managing Director
Longevity Partners
