Thought Leadership

A comprehensive analysis of office market performance across key cities, including Singapore, Hong Kong, Tokyo, Sydney, and Mumbai. Despite macroeconomic uncertainties, occupiers are adapting to evolving workplace dynamics. It provides comprehensive data on rental trends, vacancy rates, and emerging market opportunities, offering valuable perspectives for investors and occupiers alike.

Reimagining Real Estate: A Framework for the Future provides a pathway for the industry to create more liveable, sustainable, resilient and affordable buildings. The framework underscores that robust and resilient capital markets are key to achieving that vision and explores how technology, infrastructure and putting people at the heart of development all drive long-term value.

Calls to action for both the public and private sectors emphasize the necessity of collaboration amid an increasingly complex global landscape and case studies demonstrate what is possible.

Hotel performance enjoys solid recovery in Thailand; creativity key for investors. In Australia, growth moderates as volume of Australians travelling abroad outpaces international arrivals. International demand drives performance gains in Korea; investors seek operational agreement flexibility.

Improved leasing demand sees incentives stabilise in Australia. Tenant’s market in Mainland China prompts landlords to offer more incentives and CapEx subsidies. Tight supply and robust demand in the UAE ensure the market continues to favour landlords.

Retail leasing momentum improves in Hong Kong SAR, backed by strong F&B demand. Strong demand and limited availability in Japan continue to characterise the retail market in Tokyo and regional cities. Market sentiment in Thailand remains upbeat, with both landlords and tenants aggressively expanding.

Momentum remains strong in Singapore as volume recovers from last year’s low base. Investment remains upbeat in India as office transactions gain momentum. Investment volume picks up in Korea but market liquidity remains a challenge.

Demand remains weak in Singapore but could improve in 2025 amid growing business confidence. Subdued market in Mainland China prompts landlords and tenants to seek cost-saving cooperation. In Korea, leasing remains thin as limited space, political turmoil and cost saving weigh on demand.

The Asia-Pacific Horizon report examines the present economic and geopolitical landscape, evaluates the challenges and opportunities within the Residential and Commercial sectors, and provides guidance on unlocking potential.

CBRE’s 2025 Asia Pacific Investor Intentions Survey uncovered an improvement in buying intentions across most markets in Asia Pacific this year, with over half of respondents indicating their preference to buy more real estate in 2025. With the interest rate cut cycle underway in most markets, investors are gearing up for an increase in activity over the next 12 months, albeit with individual Asia Pacific markets staggered at different stages of the pricing and investment cycles.

Although real estate investment activity in most markets is forecasted to increase through 2025, the extent at which it will do so will differ according to location. While markets including Australia, Korea, Singapore, and Hong Kong SAR are expected to see gains in transaction activity in 2025, investors are less optimistic about the extent of rate cuts in 2025, which could weigh on investment sentiment throughout the year. After a strong 2024, Japan and India are expected to witness robust purchasing activity in 2025, with core/core-plus investment strategies in the former and opportunistic strategies in the latter most prevalent. 

The survey was conducted in November and December 2024. Over 460 responses were received from participants who were asked a range of questions related to their buying intentions, perceived challenges and preferred investment strategies, sectors, and markets for the coming year. 

Other key findings:

• Sentiment: Overall investment sentiment has improved, with net buying intentions increasing from 5% in 2024 to 13% in 2025. Investors indicated that interest rate cuts and asset repricing are the main reasons behind their willingness to increase allocations to real estate.
• Strategy: The survey revealed that core-plus and value-added investment strategies are set to gain momentum in 2025 as investors look to hit target returns and acquire core assets for core-plus and value-add pricing. Interest in opportunistic investment strategies continues to weaken.
• Asset class: Offices and data centres saw the biggest uptick in investor preference in 2025, with investors in the former seeking core and core-plus product, and buyers of the latter preferring opportunistic pricing, particularly in Southeast Asia. Among core investors, industrial remains the preferred property type. While living sector assets remain attractive, the lack of investable stock outside of Japan, Australia and mainland China will continue to cap investment activity in the region.
• Alternatives: Healthcare assets remain top of mind for investors considering alternative assets, with data centres climbing back to second place. This year’s survey also uncovered a greater emphasis on living sector assets, such as retirement living and student accommodation.
• Destinations: Tokyo retained top spot for a sixth consecutive year as the preferred market for cross-border real estate investment, followed by Sydney and Singapore. Two Indian markets (Mumbai and New Delhi) ranked in the top 10 cross-border destinations for the first time since surveys began.
• Sustainability: Investors ranked acquisition and development of green buildings above retrofitting existing buildings as their top option in 2025. Although progress remains gradual, investors continue the trend of placing a higher green premium on ESG-certified assets.

CBRE’s latest leasing market sentiment index reveals that overall leasing sentiment improved in Q4 2024, led by Japan and Korea, with the leasing pipeline to improve slightly across all sectors in 2025:

• Office – Lower appetite for expansion: There was a slight increase in enquiries and site inspections this quarter, with most occupiers opting for lease renewals over relocations. Selected markets, particularly those in Greater China, continued to report downward pressure on rents. Expansionary sentiment remained strong in Japan, but tenants in mainland China focused on downsizing to cut costs.
• Retail – Upbeat sentiment: Leasing sentiment remained positive, backed by strong expansionary demand. Hong Kong SAR and Australia reported a rebound in sentiment amid a rise in enquiries and site inspections. The leasing market continued to favour landlords, with rents witnessing steady gains.
• Industrial & Logistics – Tenant-favoured: Most surveyed markets remained in favour of tenants, consistent with the previous quarter. Rising incentives were also observed. Expansionary appetite is stronger compared to last year.