Asia Pacific commercial real estate investment reached $65.6 billion in third quarter 2026, up 17.9 percent quarter over quarter and 7.3 percent year over year, making it the second-strongest quarter on record, according to Knight Frank.
Year-to-date investment rose 29.3 percent year over year to $183.4 billion, reflecting sustained appetite for real estate across the region. However, rising borrowing costs are beginning to test that momentum, weighing on liquidity and returns as demand for prime assets with resilient income prospects remains intact.
Retail recorded the strongest year-over-year growth among major sectors, with investment rising 54.3 percent to $12.5 billion (from $8.1 billion in third quarter 2025), accounting for 19.1 percent of regional volume. Activity was led by Singapore, where CapitaLand Integrated Commercial Trust’s $3 billion acquisition of Paragon on Orchard Road represented nearly a quarter of regional retail investment.
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