Asia Pacific commercial real estate investment reaches USD 40.3 billion in Q4 2025

Hong Kong's investment market sees strong quarterly rebound, driven by end-user demand in the office sector, says JLL.

JLL

12 February 2026

Asia Pacific commercial real estate (CRE) investment volumes totalled USD 40.3 billion in Q4 2025, marking a 15% year-on-year (YoY) increase, according to new data from JLL. Full-year 2025 investment volumes reached USD 147.6 billion, an increase of 12% on 2024 and the strongest annual performance since 2021, capping a year of steady recovery despite a challenging macroeconomic and geopolitical environment.Hong Kong recorded a strong rebound in CRE investment activity in Q4 2025, with quarterly investment volumes reaching USD 2.4 billion, up 62% YoY, bolstered by two major office transactions. For the full year, total investment volumes amounted to USD 6 billion, marking a 32% rise YoY.Investment activity in the city was largely driven by the office sector, which accounted for 62% of total volumes in 2025. Demand was underpinned by end-users and occupiers seeking premium assets in core districts, as the flight-to-quality trend continued to define the Hong Kong market.Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said: "Hong Kong's CRE investment market regained solid footing in 2025, underpinned by a healthy recovery in office demand and improving investor sentiment. The pickup in large-scale transactions demonstrates renewed confidence from investors in Hong Kong. Looking ahead, we expect occupier-led acquisitions in the office sector to remain the main driver, while investor interest in the hotel and living sectors should continue to strengthen, supported by the city's tourism recovery and emerging opportunities for conversions such as purpose-built student accommodation. Although tight credit conditions are likely to persist as a headwind, we believe the market is nearing a pricing floor, creating the potential for selective opportunities as underlying fundamentals improve."Japan maintained its status as the region's most active market, recording USD 9.8 billion in investment volumes in Q4 2025, bringing the full-year total to USD 41.4 billion. While investment volumes were down 9% YoY in Q4, they rose 14% for full year 2025. Investment activity was supported by several high-profile sale-and-leaseback deals across office and industrial assets with higher industrial volumes due to more development project exits.South Korea saw a surge in activity, with Q4 2025 volumes of USD 7.7 billion representing a 41% YoY jump, bringing the 2025 FY total to USD 28.1 billion (+29% FY). The Korean market was buoyed by strong domestic demand for core office assets and foreign investor interest in the logistics sector. High demand for hotels has pushed up prices with investors scouring the market for value-add hotel opportunities."The strong year-end performance caps a year of steady recovery for Asia Pacific's CRE markets. Despite a turbulent global backdrop, investment volumes have shown remarkable resilience, climbing 12% for the year," said Stuart Crow, CEO, Asia Pacific Capital Markets at JLL. "We are seeing continued confidence from investors, evidenced by the sustained momentum in powerhouse markets like Japan and South Korea. A notable trend is the growing influence of regional capital, which is increasingly active in acquisitions across APAC, complementing established global capital flows."Cross-border investment trends continue to highlight the increasing influence of regional capital across APAC. While global capital remains the leading source of cross-border acquisitions into major markets such as Japan and Korea, capital from within the wider Asia Pacific region is becoming increasingly prominent in transaction activity. Singaporean investors have been particularly active in Australia, completing a number of significant acquisitions over the year.

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In 2026, technology will be a significant catalyst for investment. The global boom in Artificial Intelligence (AI) spending is expected to directly impact real estate by fuelling robust demand for data centres amidst APAC's robust pipeline and digitalisation initiatives, with investment volumes reaching USD 15 billion in 2025.Additionally, the living sector captured a record share of CRE investment, with APAC investment volumes rising 77% YoY to USD 12.6 billion, representing 9% of total CRE activity. Markets such as Japan, Singapore, Australia and Greater China were the most active markets in 2025.With the real estate market expected to benefit from broader economic growth across major markets and moderating inflation, the outlook for Asia Pacific CRE in 2026 is one of cautious optimism, fuelled by robust occupier fundamentals, emboldened investor confidence, and increasingly sophisticated capital deployment strategies spanning the region."As we enter 2026, we anticipate a more stable operating environment supported by improving market fundamentals. The boom in AI spending has infused a new layer of optimism into the global economy, and its impact on real estate demand will be a key theme to watch," said Pamela Ambler, Head of Investor Intelligence, Asia Pacific at JLL. "Furthermore, with expectations that debt costs may have bottomed out across many markets, investors will be keenly observing central bank policies. Monetary policy decisions, particularly from the Federal Reserve, will be crucial in shaping the investment landscape throughout the year."Learn more in JLL's Q4 2025 / 2026 Outlook Capital Tracker.

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 113,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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