Asia Pacific’s commercial property recovery is gathering pace, with investment activity rising 27% year-on-year in the first half of 2026 (1H26) as tighter office supply and sustained demand for premium assets strengthen the region’s mid-year outlook, CBRE said.
Office assets remained a major driver, with investment volumes climbing 29%. Singapore led the regional performance, while activity improved in Hong Kong and began stabilising in mainland China.
CBRE Asia Pacific head of capital markets Greg Hyland said investors were moving beyond the recovery phase and targeting markets and property segments capable of delivering income, particularly Tokyo, Sydney and Singapore, where rental growth remains strong.
The outlook for prime offices is being reinforced by a tightening supply pipeline. New Grade A office completions across mature markets fell 38% in 1H26, with elevated construction costs and constrained development expected to limit future additions.
Leasing demand remained resilient despite geopolitical uncertainty, supported by artificial intelligence-related occupiers in Singapore, global capability centres in India and companies upgrading to better-quality space in mainland China. CBRE expects stronger leasing activity and rental growth through the remainder of 2026.
Demand for logistics space is also expected to hold firm, although occupiers are increasingly favouring modern, well-located facilities. The growing performance gap between prime and secondary properties could widen further as the development pipeline contracts from 2027.
Prime retail properties are similarly positioned to benefit from limited new supply, new-to-market Asian brands and growing demand for experience-led shopping environments. In the hotel sector, operators are lifting average daily rates to drive revenue growth, while concerts and major events are helping boost occupancy during traditionally quieter periods.
The findings point to an increasingly selective recovery: investors and occupiers are returning, but capital and leasing demand are concentrating on high-quality assets in cities offering rental growth, constrained supply and reliable income.
