Hong Kong Returns to Top Five for Cross-border Real Estate Investment for 2026: CBRE Survey

Investors in Asia Pacific are preparing to deploy more capital into the commercial real estate market in 2026, supported by improving occupier fundamentals, reduced supply pipelines and gradually easing financing conditions, according to CBRE’s 2026 Asia Pacific Investor Intentions Survey. Following a brief hiatus last year, Hong Kong is back in the top 10, securing the fifth place among preferred cross border investment destinations.

The survey uncovered a further improvement in buying intentions across most markets in Asia Pacific this year, with over 57% of respondents indicating their preference to buy more real estate in 2026.

“The 2026 outlook marks a clear pivot toward renewed growth as investors move beyond the defensive strategies of recent years,” said Reeves Yan, Head of Capital Markets, CBRE Hong Kong. “Net buying intentions have improved across the board, with both mainland China and Hong Kong SAR investors showing a stronger appetite to deploy capital, and attention is increasingly focused on assets capable of delivering sustained rental growth, particularly in supply constrained markets. This momentum is supported by rising mainland investor interest, especially in the living and hotel sectors, where 2025 saw several hotel to student accommodation conversions to meet growing demand—a trend expected to continue into 2026.”

Offices rose to become the most preferred sector for the first time in six years, with industrial & logistics and the living sector rounding out the top three in Asia Pacific. Corporate owner occupiers in Greater China are becoming more active in acquiring office assets for self use, particularly in Hong Kong SAR. At the same time, investors continue to broaden their focus across the living sector spectrum, much like mainstream build to rent and build to sell assets. Student accommodation remains a standout, especially in markets with high immigration levels such as Australia and Hong Kong, where demand continues to outpace supply.
 
“What stands out in 2026 is the selectivity behind the recovery,” said Ada Choi, Head of Research, Asia Pacific for CBRE. “Investors are concentrating on markets where pricing is clearer, occupier demand is resilient, and financing conditions are incrementally more supportive. That combination is fostering a measured return of confidence and a willingness to deploy capital, particularly into high quality assets with visible income durability.” 

REITs, institutional investors and major funds are expected to be more active buyers in 2026, building on the pickup seen in 2025. In contrast, private investors and developers are likely to shift to net sellers as they recycle assets bought during earlier price dislocation.

Top Markets for Investment:

• Tokyo remains the preferred market for cross border real estate investment in Asia Pacific for the seventh consecutive year, supported by accretive debt costs and stable, growing cash flows.
• Sydney, followed by Singapore and Seoul (tied) ranks next, underpinned by sustained investor demand, easing debt costs, and opportunities across core office and an increasingly diversified set of asset classes.
• Hong Kong SAR has returned to the top five investment markets, buoyed by renewed investor demand, particularly from mainland China, and strong activity in the living and hotel sectors, including asset repurposing opportunities.

Preferred Property Types:

• Office is the most sought after property type with 25% of investors targeting the sector in 2026, driven by pricing adjustments and recovering leasing demand across core markets.
• Industrial and logistics remains a key target, with 21% of investors identifying the sector as a priority, with completions set to decline sharply from 2027 onwards and supported by structural e commerce growth.
• The living sector remains popular, with build-to-rent opportunities attracting strong interest, while data centres placed fourth after the sector’s inclusion in the traditional sector category.

Primary Challenges for Investors:

• Rising labour and construction costs have become the top challenge for investors for the first time since the survey began.
• Geopolitical tensions remain a concern, particularly in mainland China and India.
• Interest rate risks have resurfaced in Japan and Australia following recent central bank signals.

To read the full report, click here.


About the Survey
The CBRE 2026 Asia Pacific Investor Intentions Survey was conducted in November and December 2025. It reflects the views of more than 420 respondents across a diverse range of investor types, including REITs, institutional investors, and private equity funds.