Regional sentiment is improving with Tokyo, Singapore, and Sydney the top targets for cross-border investment.
The past four years have been a long slog when it comes to Asia Pacific property. China’s real estate crisis, triggered by Evergrande's default in 2021, has triggered a once-in-a-generation rethink of the entire sector.
It has also led to unheard-of declines in places like Hong Kong, where the wealthy continue to offload prices at fire sale prices, as a South China Morning Post (paywall) article (paywall) at the start of 2025 indicates.
Higher Willingness
However, it is not all slump and crashing prices, as a CBRE survey published on Monday indicates.
According to the real estate services and investment group, sentiment is improving as the willingness of cross-border investors to get in there and buy has risen to 13 percent in 2025 from just 4 percent last year.
Leading Lights
«Key drivers of this increase include falling debt costs and asset repricing. For example, Singaporean and Hong Kong SAR investors with cross-regional mandates have expressed net buying intentions across the board,» CBRE indicated.
The clearest light at the end of the tunnel is in Tokyo, which is the top target for regional real estate investment, keeping a position it has held for the last six years. It is followed by Sydney and Singapore in second and third place given the higher returns achievable, with the city-state also seen as a «stable and reliable market».
India Up and Coming
The Indian subcontinent was garnering increased interest as well, with investors looking to expand real estate portfolios in the world’s fastest-growing economy, with Mumbai and New Delhi ranking among the top 10 markets regionally.
Turning back to the overall picture, however, industrial properties were the most sought-after, although office and data centers also saw increased interest this year.
Offices are Back
«At the same time, the office sector is experiencing increased interest after three years of declining investor preference, particularly in markets like Australia, Singapore, and Korea, where leasing activity has stabilized or is showing growth,» CBRE indicated.
