Mega-deals drive 49% rise in real estate investment

APAC office investment recorded its eighth consecutive quarter of annual growth, with turnover rising 8% in Q2 2026.

Transaction numbers grew more slowly, however, suggesting that average deal sizes are increasing as investors focus on larger core assets.

Deals worth more than $635.84m (US$500m) more than doubled in the first half, supporting activity in South Korea, Japan and Singapore. There are also early signs that large-scale transactions are returning to China.

Singapore remained the region’s primary market for core office deals this year, supported by lower funding costs and strong operating fundamentals.

The investment pipeline also remains strong, with Khazanah and Temasek reportedly selecting their preferred bidder for the Marina One asset at a valuation of around $5.60b (US$4.4b).

Elsewhere across APAC, investment activity in the living sector softened further in Q2, making it a key outlier in terms of trading momentum.

Purpose-built student accommodation (PBSA), however, is gaining momentum across the region as rising international student numbers support the buildout of institutional platforms.

Industrial and logistics investment continued along a recovery path, with Q2 investment rising 17% year-on-year and first-half turnover increasing 28%. Gains were mixed across the region, but momentum remained evident in Australia, Mainland China, Singapore, and Taiwan.

Sentiment across the industrial and logistics sector remained broadly positive despite multiple shocks related to energy and trade in recent years.

Recent transactions also highlight how developers are increasingly using capital partnerships and asset recycling to fund the next phase of industrial development.