HONG KONG, Feb 3 (Reuters) - Net buying intentions in Asia Pacific real estate rose to a four-year high for 2026, lifted by a stronger rental outlook, reduced supply pipelines and gradually easing financing conditions, a survey by CBRE showed on Tuesday.
The office segment was named the most preferred sector for the first time in six years, as leasing activities picked up, the real estate agency said.
Real estate investment across the region has been subdued in recent years, due to higher interest
rates, tightened financing and structural changes in the office sector.
Geopolitical tensions and volatile capital markets also made investors more cautious.
TOKYO AGAIN TOPS TABLE
Yet for 2026, net buying intentions - measuring the proportion of investors who plan to buy more than sell - climbed to 17% from 13% the year before, driven by upticks in Korea, Australia and Singapore, and stable interest in Japan, the survey found.
Mainland China was still a net seller, but buying intentions in the world's second-largest economy increased 11% from last year.
Among the most preferred markets for cross-border real estate investment, Tokyo topped the league table for a seventh consecutive year, due to its low debt costs, followed by Sydney in second place. Singapore and Seoul tied in third.
Hong Kong ranked fifth after falling out of the top 10 last year, buoyed by growing investor interest, particularly among mainland Chinese investors, in the living and hotel sectors.
CHALLENGES FOR YEAR AHEAD
The survey received 442 responses from investors in sectors ranging from private equity and sovereign wealth funds to insurance companies.
For the office sector, Singapore joined markets providing strong rental growth, including Australia, Japan and Korea, to be the most popular destinations for investment. Corporate occupiers in Greater China also turned more active in buying office assets for self-use, particularly in Hong Kong.
Challenges seen for investors in 2026 included escalating construction and labour costs, which ranked top for the first time, a trend particularly marked in Australia, Japan and Singapore, where overall construction costs for commercial real estate have risen significantly since 2020.
Investors, particularly from mainland China and India, continued to show concern about geopolitical tensions, which could weigh on their economic growth, while mainland Chinese investors were most concerned about the economy.
(Reporting by Clare Jim; Editing by David Holmes)
