Apac real estate investment market gearing up for growth: Colliers

Atiqah Mokhtar

/ EdgeProp Singapore

February 9, 2026 5:29 PM SGT

propertyeditor@edgeprop.sg

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According to Colliers, Apac real estate cap rates remained steady in 4Q2025 (Picture: Samuel Isaac Chua/EdgeProp Singapore)

The Asia Pacific (Apac) real estate investment market is shifting towards a new growth cycle, research by Colliers shows. In its latest Asia Pacific Cap Rates report, the firm highlights that capitalisation rates for Apac real estate have largely stabilised, as investors display rising confidence, alongside growing transaction momentum.

For CK Lau, Colliers’ managing director for valuation and advisory services in Asia, all signs point to a market that is gearing up for growth. “Cap rates held steady across most Apac markets and sectors [in 4Q2025], which suggests the region is moving into a smoother, more stable phase and laying early foundations for improvement,” he says.

Lau adds that easing interest rates and improved fundamentals in several core markets are likely to prompt investors to “move from caution to preparation”, supporting transaction activity.

Singapore is among the Apac cities showing signs of positive momentum. In its report, Colliers notes that easing rates have widened investment spreads, boosting the city-state’s appeal as a safe and competitive market for long-term foreign investors.

Elsewhere, Australia’s retail sector continued to attract strong investment flows in 2025, outperforming the office and industrial sectors for a third consecutive year. In addition, industrial deals are picking up, with Adelaide and Brisbane demonstrating unprecedented growth, Colliers adds.

India recorded a robust performance in 2025 across the office, retail and industrial sectors, which Colliers attributes to a balanced supply pipeline and healthy leasing demand. Similarly, New Zealand showed stable performance, backed by low interest rates and significant infrastructure commitments.

Investments in South Korea are dominated by its office sector, which saw a record US$16.4 billion ($20.81 billion) in investments last year, led by activity in Seoul. At the same time, Hong Kong is seeing a pick-up in office demand as Mainland China companies seek to list and raise financing in the city, while a steady recovery in tourism is providing a boost to retail rents.

In China, the investment market remains cautious, with deals primarily driven by end-users. However, prime retail assets in Beijing and Shanghai continue to show resilience, says Colliers.

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Apac real estate investment market gearing up for growth: Colliers

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