Asia Pacific Real Estate Investment Surges 27% as Premium Offices Gain Ground: CBRE

Commercial real estate investment across Asia Pacific accelerated in the first half of 2026, rising 27% from a year earlier as investor confidence strengthened across major markets and sectors, according to CBRE’s 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review. The office sector was a major driver, with investment volumes increasing 29%.

Singapore emerged as the region’s leading investment market, while Hong Kong SAR recorded improving transaction activity and mainland China showed early signs of stabilisation. CBRE says investors are now looking beyond the recovery phase and focusing more sharply on assets and markets that can provide dependable income.

Greg Hyland, Head of Capital Markets, Asia Pacific at CBRE, said the market has “progressed beyond the recovery phase,” with investors increasingly targeting stable income opportunities. Tokyo, Sydney and Singapore are benefiting from sustained rental growth, strengthening their appeal to capital seeking long-term returns.

Premium Offices Take Centre Stage

Office leasing is also showing resilience, helped by a significant reduction in new supply. Grade A office completions across mature Asia Pacific markets fell 38% year-on-year in H1 2026. Higher construction costs and limited development pipelines are expected to keep supply constrained, creating stronger conditions for well-located, high-quality assets.

Demand is increasingly concentrated around premium workplaces. In Singapore, companies linked to artificial intelligence are supporting leasing activity, while Global Capability Centres (GCCs) continue to expand office demand in India. Mainland China is also seeing occupiers move into higher-quality buildings as businesses reassess workplace requirements.

Workplace Quality Becomes a Competitive Edge

For the flexible office and coworking industry, the shift toward premium space is particularly significant. Companies are placing greater emphasis on workplace quality, employee experience and access to talent, creating opportunities for flexible workspace providers that can offer high-specification offices in strategic locations.

Ada Choi, Head of Research, Asia Pacific at CBRE, said occupier demand has remained resilient despite geopolitical uncertainty. Organisations, she noted, continue to prioritise premium office space in Tokyo, Hong Kong SAR and Sydney as they focus on “talent attraction, workplace quality and long-term operational requirements.”

The trend suggests that demand for flexible offices may increasingly be shaped by quality rather than cost or flexibility. Managed offices, fitted spaces and premium coworking environments could benefit as occupiers seek shorter commitments without compromising on workplace standards.

Logistics, Retail and Hotels Add to Momentum

Beyond offices, logistics demand remains focused on modern facilities in strategic locations, with prime assets continuing to outperform secondary stock. A shrinking development pipeline from 2027 onward could support rental growth, particularly in Greater Tokyo.

Retail is also expected to remain active, supported by limited new supply, expanding Asian brands and the rise of experience-led destinations. Meanwhile, hospitality markets are improving, with most regional hotels reporting year-on-year RevPAR growth. Higher room rates, major events and concerts are helping offset softer occupancy growth in some markets.

Overall, CBRE’s outlook points to a market increasingly driven by quality, scarcity and income resilience. For office investors and flexible workspace operators, the combination of constrained premium supply and evolving occupier needs could make the second half of 2026 an important period for repositioning, expansion and strategic investment.