Asia-Pacific property markets attract capital despite rate uncertainty
Asia-Pacific real estate investment remained strong in the second quarter of 2026 despite uncertainty over US monetary policy, with commercial transactions rising 20 per cent to US$46.1 billion. Analysts say investors are shifting towards living, senior-care and discounted assets rather than withdrawing from the region.
Asia-Pacific property markets are continuing to attract investment despite uncertainty over US interest rates, with analysts describing the trend as a change in strategy rather than a broad retreat. Commercial real estate transactions across the region rose 20 per cent year on year to US$46.1 billion in the second quarter of 2026, according to MSCI. Mainland China recorded US$13 billion in investment, followed by Japan with US$9.7 billion and Australia with US$8 billion.
Hong Kong ranked fifth with US$2.5 billion but posted the strongest growth, at 172 per cent. Office properties attracted US$15.7 billion, retail US$11.9 billion and industrial assets US$9.7 billion. Savills identified Sydney’s co-living market and South Korea’s senior-living sector as areas with strong potential.
Sydney’s central business district is described as structurally undersupplied, while South Korea’s ageing population is expected to support demand for senior accommodation. A proposed 400-room senior-living complex in Seoul, valued at 500 billion won, was cited as an example of investor confidence. In Hong Kong, buyers have been attracted by discounts of 40 to 50 per cent from peak prices, particularly in distressed-asset sales.
JLL said structural demographic trends, rental demand and limited office development pipelines could cushion the impact of further monetary tightening.
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