Singapore tops APAC property investment performance in H1 2026

CBRE says investors are targeting markets with income opportunities and rental growth.

Singapore led Asia Pacific’s (APAC) commercial real estate investment performance in the first half (H1) of 2026, as investors focused on markets and asset classes where they could capture income, according to CBRE.

APAC commercial real estate investment rose 27% year-on-year (YoY) in H1 2026, whilst office investment increased 29%.

Investment activity increased across most sectors and markets, with Singapore leading the performance, CBRE said in its 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review.

Investors focused on markets and asset classes where they can capture income, with Singapore amongst the cities where rental growth remains strong, alongside Tokyo and Sydney.

Demand for Singapore office space remained strong, driven by artificial intelligence-related occupiers. New Grade A office completions across mature APAC markets fell 38% YoY in H1 2026.

CBRE expects office supply to tighten as higher construction costs and constrained development pipelines limit new additions.

It also expects rental growth and stronger leasing activity across the region through the rest of 2026.

“Whilst geopolitical tensions heightened uncertainty, leasing sentiment across Asia Pacific remained resilient,” said Ada Choi, Head of Research for APAC at CBRE.

Choi added that demand continues to gravitate towards premium office space in major markets, reflecting a sustained focus on talent attraction, workplace quality, and long-term business performance.

In logistics, leasing volumes are expected to remain resilient, with demand concentrated in modern, well-located facilities.

The gap between prime and secondary assets continues to widen, whilst a shrinking development pipeline from 2027 onwards points to firmer rents across the region.

The retail sector is expected to benefit from limited new supply and demand for prime retail space in the second half of 2026. 

New-to-market Asian brands and experiential retail are driving leasing activity.

Hotels in most APAC markets also recorded YoY increases in revenue per available room as higher average daily rates offset varied occupancy performance.

Reduced flights from the Middle East and higher fuel costs constrained occupancy growth, whilst events and concerts drove spikes in occupancy and room rates during the low season.