Office investment was robust in H1 2026, with volumes up 29% y-o-y on the back of strong activity in Singapore, Australia and Hong Kong SAR. Most other sectors and markets recorded growth in investment volume during the period, pushing total investment volume up 27% y-o-y. Japan and Korea were the only laggards after coming off high volumes in 2025.
Surprise: Despite the RBA implementing three separate interest rate hikes totalling 75bps so far this year, investors have ramped up activity in Australia, where volumes in H1 2026 increased by an impressive 31% y-o-y.
Mid-year review
Respondents to CBRE's 2026 Asia Pacific Investor Intentions Survey named offices as their top sector for investment for the first time since 2020 as interest continues to gradually shift away from industrial & logistics. Positive market fundamentals and fading uncertainty around interest rate movements will ensure core-plus and value-add strategies dominate investor preferences in 2026.
Forecast made in January 2026
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Aside from a few exceptions, most notably Singapore, most markets in Asia Pacific witnessed limited to no yield compression in H1 2026 on the back of inflationary pressures and the return of the upward interest rate cycle. Several markets including Sydney and Brisbane now anticipate yield expansion in H2 2026. CBRE therefore expects investors to focus on the strong rental growth in cities such as Tokyo, Sydney and Brisbane as a key driver of returns. In Greater China, Shenzhen's logistics yields are forecasted to continue to expand in 2026.
Surprise: Even as interest rates rise, Tokyo's logistics and retail yields are showing compression signals on the back of rental growth for logistics facilities in Tokyo Bay and strong investor interest for prime retail assets in Ginza.
Mid-year review
Limited yield compression will shift investors' focus towards rental growth as a driver of returns; a trend that bodes well for investment in the Tokyo and Sydney office markets. Forecasted yield compression in Sydney and Brisbane – both of which lagged in 2025 - may also help boost returns. Yields in Greater China may see their multi-year expansion cycle end in 2026.
Forecast made in January 2026
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Data centre investment volume (existing assets only) reached US$4.3 billion in H1 2026 as investors retained a strong appetite for this thriving asset class. This figure included the US$2.4 billion acquisition of a data centre entity in mainland China. MSCI Real Assets data show land acquisition for development into new data centres contributed another US$1.5 billion to data centre investment volume in the first six months of 2026, with Malaysia and India the preferred markets.
Alert: PERE data indicate new private equity real estate funds focused exclusively on data centres in Asia Pacific launched since 2025 are cumulatively targeting to raise a total of US$3.5 billion.
Mid-year review
Investment in data centres will gain further momentum in 2026, with respondents to CBRE's 2026 Asia Pacific Investor Intentions Survey ranking it as the fourth most preferred sector. While the number of mature data centre markets in Asia Pacific remains limited, investors continue to explore a multitude of investment avenues including M&A and joint ventures to build scale in this rapidly expanding sector.
Forecast made in January 2026
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