A CBRE investor survey published in early February shows Asia Pacific real estate net buying intentions for 2026 have reached a four-year high, underpinned by signs of improving rental conditions, shrinking development pipelines and a gradual easing in financing conditions.
The survey reported that net buying intentions - defined as the proportion of respondents who expect to buy more assets than they sell - rose to 17% for 2026, up from 13% the prior year. That increase was driven by heightened appetite in Korea, Australia and Singapore, alongside steady interest in Japan. Mainland China remained a net seller, although intentions to buy there rose by 11% compared with the previous year.
Shift in sector preferences
For the first time in six years the office segment emerged as the most preferred sector, the survey found, reflecting renewed leasing activity across several markets. Singapore joined Australia, Japan and Korea among the locations identified as experiencing strong rental growth for offices. In Greater China, corporate occupiers increasingly purchased office properties for self-use, a trend that was especially notable in Hong Kong.
Investor sentiment toward cross-border markets remained concentrated on a handful of cities. Tokyo retained the top position as the most preferred destination for the seventh consecutive year - a status attributed in the survey to low debt costs. Sydney placed second in the ranking, and Singapore and Seoul were tied for third. Hong Kong moved up to fifth after having fallen out of the top 10 the previous year, supported by stronger investor interest in the living and hotel sectors, particularly from mainland Chinese buyers.
Survey scope and investor concerns
The findings are based on responses from 442 investors, representing institutions such as private equity firms, sovereign wealth funds and insurance companies. The survey highlighted several headwinds investors expect to confront in 2026.
Escalating construction and labour costs were cited as the top challenge for the year ahead, ranking first for the first time in the survey's results. That issue was identified as particularly acute in Australia, Japan and Singapore, where overall construction costs for commercial real estate have increased significantly since 2020. Geopolitical tensions and volatile capital markets were noted as factors that had kept investment subdued in recent years by increasing investor caution. The report also observed that higher interest rates, tighter financing and structural shifts in office demand had previously constrained investment activity across the region.
Investors from mainland China and India, in particular, signalled continued concern about geopolitical tensions and their potential to weigh on economic growth. Among investor groups, mainland Chinese respondents were reported as being the most concerned about the broader economy.
Implications and context
According to the survey results, an improving rental outlook and smaller new supply pipelines, together with easing finance conditions, have combined to lift net buying intentions for 2026. The resurgence of interest in office assets and the ranking of major markets offer insight into where capital is likely to be focused if the conditions cited by respondents persist.