Asia Pacific commercial real estate investment maintained solid momentum in the first quarter of 2026, but CBRE notes that geopolitical volatility is prompting some investors to tread carefully.
The CBRE’s Asia Pacific Investment Trends Q1 2026 report highlights investment activity remains solid in the region, but concerns have risen over global disruptions.
Greg Hyland, CBRE’s Head of Asia Pacific Capital Markets, said that while investor sentiment was strong early in 2026, the conflict in the Middle East has led many to decisions to a more cautious stance as energy prices, inflation and interest rates fluctuate.
Despite the caution, fundamentals are still robust. CBRE reports that many markets entered 2026 on the heels of a record 2025, with major deals and strong demand in key sectors like office and logistics.
International capital remains active – for example, foreign investors are reportedly seizing opportunities in Australia amid repricing of quality assets – even as domestic buyers in Korea continue to drive activity through newly capitalised funds. In Hong Kong, sentiment is gradually improving, buoyed by living-sector conversions and residential development deals.
CBRE cautions that further escalation of the Middle East crisis could undermine these trends.
Report Overview
Following a strong 2025, investment activity in Korea enjoyed a solid Q1 2026, driven by renewed domestic and foreign investment demand. The re-capitalisationof domestic investment managers through large blind fund allocations from Korean institutional LPs has injected renewed liquidity into the market, particularly for office and logistics assets.
While there is concern over a potential uptick in office supply at the back end of the decade, investment volume should be unaffected in the short term.
In Australia, inflationary pressure pushed up interest rates in early 2026, weighing on investment sentiment. While investment volume will be strong in Q1 2026, purchasing activity over the coming quarters will be negatively impacted.
International capital will be the primary source of demand, with investors from abroad holding a medium-term view that now is the opportune moment to access quality Australian assets at repriced levels.
Investment sentiment in Hong Kong SAR has improved modestly in recent months, particularly for living assets and PBSA conversions. Investment volume is forecasted to grow 5–10% y-o-y in 2026, with the market currently tracking toward the upper end of the range. Activity in the residential development site segment is expected to be brisk as developer confidence spills over into broader investment activity.
