Asia-Pacific Real Estate Investment Rebounds as Global Capital Returns

Asia-Pacific real estate investment strengthened significantly during the second quarter of 2026 as international investors returned to major markets including Japan and Singapore, according to Knight Frank.

Commercial property investment rose 31.1% year on year to USD53.5bn, while cross-border investment surged 156.8% to USD12.5bn, representing 23.4% of total regional transaction volumes.

Japan attracted USD5bn of international capital, while Singapore received USD3bn, more than three times the amount recorded a year earlier.

Hotels were among the strongest-performing segments, with investment increasing 55.2% to USD5.4bn as tourism recovered and institutional investors targeted repositioning opportunities.

Overall transaction activity stood 16.1% above the five-year second-quarter average, although volumes were 22.5% below the record first quarter.

Knight Frank said the quarterly decline represented normalisation rather than a reversal of the broader property investment recovery.