Real estate investment activity across key Asia Pacific markets has remained resilient despite higher borrowing costs, with investors focusing on rental growth, asset repositioning and alternative property sectors, according to a CBRE report.
In Japan, the Bank of Japan has raised its policy rate twice in 2026 to 1.25 percent, bringing borrowing costs to their highest level in years. Investment activity has remained strong, however, with property yields largely stable outside Tokyo’s logistics sector. Double-digit rent growth for class A office properties has helped offset higher financing costs, prompting investors to target assets with below-market rents and potential for rental increases.
Singapore has also experienced an increase in investment activity during the past 12 months, supported by economic growth and lower interest rates following a 200-basis-point reduction in 20
