How Asia-Pacific property markets are drawing fresh capital despite US rate uncertainty
Property markets in the Asia-Pacific region are likely to remain attractive despite heightened uncertainty over monetary policy after the US Federal Reserve delivered its first interest rate increase in more than three years this month, analysts say, with several asset classes and sectors expected to draw investor interest. “We’ve seen volumes, specifically cross-border volumes in the region,…
The Asia-Pacific property markets are expected to remain attractive despite recent uncertainty over monetary policy in the United States, experts say. Property volumes in the region have surged by around 30% due to increased cross-border investment, according to Emily Fell, senior director for living sectors in Asia-Pacific capital markets at Savills.
China led the region with a 154% increase in real estate investment, followed by Japan and Australia. Commercial real estate transactions rose by 20% to US$46.1 billion in the second quarter of 2026. Office properties drew the most investment at US$15.7 billion, followed by retail and industrial properties. South Korea is identified as a market with strong growth potential due to the ageing population, and Hong Kong is likely to continue attracting capital from investors seeking property bargains, despite being largely influenced by US monetary policy.
Southeast Asian investors have emerged as the largest non-local buyers of Hong Kong commercial property this year, contributing more than 11% of the total value of deals. Experts suggest that investors should focus on sectors with strong rental growth prospects and limited development pipelines, such as office markets and living sectors, to navigate the current macroeconomic uncertainty.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
