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Thought Leadership

CBRE’s 2026 Asia Pacific Investor Intentions Survey uncovered a further improvement in buying intentions across most markets in Asia Pacific this year, with over 57% of respondents indicating their preference to buy more real estate in 2026.

Net buying intentions in Korea, Australia and Singapore strengthened while those in Japan remained stable. While their intentions remained negative, investors in both mainland China and Hong Kong SAR exhibited improved net buying intentions in 2026 compared to last year.

Sector preference shifted in this year’s survey. Offices rose to become the most preferred sector for the first time in six years, with industrial & logistics and the living sector rounding out the top three. Data centres continue to climb up the list of investor preferences, placing fourth this year.

KEY TAKEAWAYS

  • Companies increasingly adopted a “flight-to-quality” approach to their office location strategy, and Grade AAA offices continued to be absorbed, supported by the tight pipeline of new top-tier space.
  • According to Savills’ data, the vacancy rate for CBD Grade A offices fell by 0.3 of a percentage point (ppt) quarteron-quarter (QoQ) to 6.7% in Q4/2025. For the full year, vacancy declined by 1.3 ppts, reversing the 1.5 ppts increase recorded in 2024.
  • With a limited pipeline of new office developments and low vacancies, average CBD Grade A office rents continued to rise for the seventh consecutive quarter by 0.3% QoQ to S$9.96 per sq ft in Q4/2025. For the whole of 2025, office rents rose by 1.8%, outpacing the 1.1% growth seen in 2024.
  • For 2026 and 2027, Grade A CBD rents are expected to rise across the board. Grade A space will be dominated by large and financially strong companies and family offices while non-Grade A space would, over time, be either redeveloped or experience rising vacancy levels as their tenancy base consists of smaller subgroups of industries that face greater margin pressures. Our forecast for Grade A CBD office rent for 2026 remains at +2%.

Asia Pacific’s commercial real estate market is entering a critical phase in 2026, showing strong resilience after challenges in 2025. With interest rates steady and capital markets improving, optimism is rising among investors and occupiers.

Based on our APAC Outlook 2026 and other reports, Six for 2026 spotlights the major trends influencing the region. These include changes in office supply and increased investment in AI-powered data centres, highlighting where growth and strategic opportunities are emerging.

KEY TAKEAWAYS

  • Real estate investment sales in Singapore closed the final quarter of 2025 with total transactions amounting to S$10.97 billion. While this represented a 3.3% quarteron-quarter (QoQ) decline from the preceding quarter, activity levels were still resilient. It should be noted that the third quarter had a high base of S$11.35 billion.
  • Investment activity from S-REITs, institutional investors, and high-networth individuals remained healthy, underpinned by lower financing costs and strong fundamentals across most property segments. In addition, the impact of US President Trump’s tariffs proved less severe than initially anticipated.
  • The outlook for the investment sales market in 2026 is shaped by more than just the trajectory of interest rates. Fluid and volatile geopolitical developments are increasingly adding complexity to the picture. Given these conditions, we are maintaining our investment sales forecast for 2026 at approximately S$34 billion, in line with 2025 levels. Among physical assets, sectors likely to perform better this year include office, retail, and properties with redevelopment potential.

The new office equation: Singapore’s workplace shifts for a hybrid, sustainable, multi-generational future

In Singapore and across Asia Pacific, organisations are rethinking workplace strategies and creating environments that drive performance and impact.

Our Workplace Survey of more than 800 corporate occupiers in the region, offers a unique view of how workplaces are taking shape.

Key Insights

  • 48% of organisations have invested or plan to invest to drive workplace quality and employee experiences.
  • 47% of organisations have hybrid models; most maintain attendance mandates and assigned seating.
  • 15% are already considering, and 40% are starting to explore, the needs of five generations in the workplace by 2030.
  • Sustainability is a bold ambition, with 52% collaborating with their landlord.
  • 20% use AI tools to enhance employee experience; 6% use desk booking data; 3% have occupancy sensors.

Read the full report to explore how you can shape an adaptive, high-performing and next-generation workplace.

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.

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.

Recent years have seen the global automotive industry grapple with an array of challenges including supply chain disruption, the ongoing transition to and subsequent slowdown in EV sales, evolving consumer requirements; and, most recently, escalating geopolitical tension and tariffs.

Other hurdles include a need to comply with 2030 net zero and sustainability targets (for manufacturers continuing to build petrol engine cars) and regulatory requirements related to new technologies such as connected and autonomous vehicles.

Labour shortages and a widening skills gap pose further challenges, as auto firms struggle to recruit employees with new and sought-after technical skills such as those related to EV technology, software, and data analysis.

Against this backdrop, many auto firms in Asia Pacific are reorganising operations, reducing headcount, and engaging in M&A activity and strategic partnerships; a process that is inevitably reshaping their commercial real estate requirements.

Explore the shifting dynamics of the region’s real assets landscape amid evolving economic conditions. The study identifies both cyclical and structural investment opportunities, emphasizing resilience, innovation, and sustainable growth as key priorities for investors.

Offices in markets such as India, Australia, and Japan could offer an attractive entry point with rental growth prospects looking more positive. Core assets with proximity to amenity and public transport are increasingly sought after, with the gap in occupier preference for centralised and decentralised locations widening.

Industrial & logistics assets in locations with higher potential for manufacturing occupier demand, such as Southeast Asia and India are expected to outperform. Dry logistics in Korea will continue to capture investors’ interest. E-commerce continues to evolve, helping to drive demand for logistics space in fast adopting markets.​

While retail demand has been more conservative due to global trade uncertainty, most markets are expected to see rent growth continue in 2025 and 2026. Tailwinds include population growth and rate cuts in Australia; solid tourist arrivals offsetting slower domestic consumption in Japan and Korea; and strong leasing demand from local retailers in India.​

Living sector demand continues to accelerate despite the limited scale of this asset class in Asia Pacific. Investors are advised to stay focused on established markets such as Japan, where cash-on-cash yields remain attractive and vacancies remain low. Other options include developing or acquiring projects for build-to-rent or student accommodation in markets with significant supply shortfalls, such as Australia and Hong Kong SAR.​

Data centres continue to grow as a primary investment option for investors in Asia Pacific. With demand for AI strengthening, supply across most markets in Asia Pacific is projected to be unable to meet demand. Opportunities for investment in tier I markets such as Japan, Australia and Korea will continue to surface as operators look to recycle assets, while development partnerships will remain an option in growing Southeast Asian markets.

Across Asia-Pacific, the region has witnessed a significant influx of investment and infrastructure development, fuelled by its substantial market size, growing exports and rapid urbanisation.

This trend raises an important question: What are the top three drivers of office demand in the Asia-Pacific region?

The infographic highlights the key industries fuelling demand across APAC. In India, IT-BPM and banking & finance accounted for 46% of total office demand. In Chinese Mainland, finance and TMT contributed 28.4%. In SEA, countries such as Vietnam, Singapore, Malaysia, Indonesia, and the Philippines are seeing strong demand for office space, primarily led by IT-BPM, banking & finance, and technology sectors.