Mar 05, 2026

Summary:

The Asia-Pacific (APAC) office and commercial real estate market is showing strong growth, with office leasing expected to increase by 11% in 2025 alongside a 19% rise in supply, indicating a balanced market. Key markets like Jakarta, Manila, and Melbourne are experiencing robust leasing and development activity. However, Hong Kong Grade A office rents are forecasted to drop by up to 5% in 2026, with recovery limited to prime buildings. The hospitality sector in Jakarta is expanding, especially midscale hotels and serviced apartments. Adelaide’s industrial real estate is growing significantly, with over 110,000 sqm of new space by late 2026. Luxury residential markets in Bangkok and Tokyo are poised for growth, driven by wellness trends and foreign investment respectively.

In Singapore, residential development is active with new executive condominiums (ECs) and boutique condos launching in areas like Tampines and Lentor, which show strong demand and limited supply. The market remains resilient amid geopolitical uncertainties, supported by supply controls and prudent financing. Luxury conserved terrace houses in prime districts offer unique opportunities for long-term appreciation.

Recommended Opportunities:

1. Office Sector in APAC:
2. Invest in or lease office space in Jakarta, Manila, and Melbourne where demand and new supply are strong.

3. In Hong Kong, focus only on prime Grade A office buildings to mitigate the impact of rent declines.

4. Hospitality in Jakarta:

5. Target investments in midscale hotels and serviced apartments to capitalize on growing travel and business activity.

6. Industrial Real Estate in Adelaide:

7. Explore industrial property investments aligned with the expanding logistics and warehousing demand.

8. Luxury Residential in Bangkok and Tokyo:

9. In Bangkok, prioritize high-end residential projects with wellness amenities appealing to end-users.

10. In Tokyo, consider residential properties benefiting from foreign investment and secure lease structures for stability.

11. Singapore Residential Market:

12. Focus on new ECs and boutique condominiums in growth areas such as Tampines and Lentor for entry-level and mid-tier investments.
13. Consider premium conserved terrace houses in prime districts for luxury, heritage, and long-term capital growth.
14. Leverage Singapore’s market resilience by investing in well-located, in-demand residential segments.

Overall Strategy:

Target markets with strong leasing momentum and supply growth in offices and industrial sectors (Jakarta, Melbourne, Manila, Adelaide). For residential, focus on luxury and lifestyle-oriented projects in Bangkok and Tokyo, and strategically select new launches and heritage properties in Singapore. Exercise caution in Hong Kong office investments due to anticipated rental declines, emphasizing prime assets only.

Stay Well!