Feb 12, 2026

Summary:

The APAC real estate market is undergoing a cyclical shift with stabilization in capitalization rates and increasing activity in major cities. Singapore’s Grade A office rents in the CBD have risen for seven consecutive quarters, supported by strong demand and low vacancy rates. Tokyo’s office market is expected to recover fully by 2026, with growing demand moving towards bayfront areas due to limited large spaces downtown. In the Philippines, industrial rents vary regionally, with Southern Luzon commanding premiums and North Luzon offering affordable options. Malaysia’s retail sector is shifting towards experience-based malls, while Hanoi is focusing on transit-oriented, mixed-use developments amid rapid urban growth.

Technological advancements, especially AI-enabled smart buildings, are enhancing property efficiency and appeal, attracting institutional investments in data centers and cloud infrastructure. Sustainability and energy security are becoming critical, with efforts to retrofit older buildings to manage climate risks and reduce energy costs.

Singapore’s residential market sees promising new launches like the River Modern condominium in prime District 9, offering riverfront living and strong connectivity. Large-family developments such as ARTRA show resilience, while en-bloc sales indicate ongoing market consolidation.

Recommended Opportunities:

1. Singapore CBD Grade A Offices: Invest in premium office spaces experiencing rising rents and declining vacancies driven by flight-to-quality demand, promising stable income and capital growth.

2. Tokyo Bayfront Office Market: Capitalize on the overflow demand from the constrained city center by investing in bayfront offices poised for rent growth beyond pre-pandemic levels by 2026.

3. Transit-Oriented Developments in Hanoi: Target mixed-use, high-density projects along transit corridors benefiting from rapid urbanization and infrastructure development.

4. AI-Enabled Smart Buildings and Sustainable Properties: Focus on assets incorporating AI technology and energy-efficient features to improve operational performance and attract premium tenants.

5. Philippine Industrial Real Estate: Explore industrial properties in Southern Luzon for higher rental yields or North Luzon for cost-effective investments, supporting portfolio diversification.

6. Prime Residential Launches in Singapore: Consider high-quality residential developments such as riverfront condominiums with excellent connectivity for potential capital appreciation.

7. Energy Retrofitting and Sustainability Upgrades: Invest in commercial properties suitable for green retrofitting to enhance resilience against climate risks and rising energy expenses.

In conclusion, prioritizing high-quality office assets in Singapore and Tokyo, transit-oriented mixed-use projects in Hanoi, and technologically advanced, sustainable properties across APAC will likely deliver strong returns. Complement these with selective residential and industrial investments for diversified growth.

Stay Well!