Asia-Pacific Commercial Property Investment Rises 22% in First Quarter

Commercial property investment across the Asia-Pacific region rose in the first quarter of 2026. Total investment in offices, retail spaces, industrial units, data centres, hotels, apartments, senior housing and other asset classes reached US$51.1 billion, an increase of 22 per cent from the same period in 2025, according to MSCI data.

Hong Kong contributed US$1.8 billion during the quarter, a 367 per cent increase from a year earlier. Mainland China recorded the largest volume at US$13.4 billion, up 55 per cent from the same quarter in 2025. In the previous quarter, Japan had led the region with US$10.1 billion out of a total of US$47.6 billion.

A separate estimate from Knight Frank put Asia-Pacific investment activity at US$64.6 billion for the quarter. That figure represented a 13 per cent increase from the preceding quarter and a 65 per cent rise from the same period a year earlier. The performance marked the strongest quarterly result since late 2021.

Office and retail segments in Hong Kong and mainland China showed early signs of recovery that contributed to the regional increase. Corporate and owner-occupier buyers led activity in Hong Kong offices while the retail sector recorded initial positive movement.

Deal volumes in Hong Kong remained modest compared with longer-term averages. The market has recovered from its recent low point and sustained activity levels into early 2026. The improvement followed a period of subdued transaction volumes in the territory.

““Asia-Pacific’s real estate recovery has gained real breadth in the first quarter and Hong Kong was one of the key markets behind the growth in deal activity.””

The data indicate that investment flows have broadened beyond a small number of markets. Japan, which led the previous quarter, saw its relative position change as mainland China and Hong Kong posted larger percentage gains. Further quarterly updates will show whether the first-quarter momentum continues.