Hong Kong, mainland China spur surge in Asia-Pacific commercial property deals
Office and retail recovery gains traction in first quarter, as Hong Kong transactions jump 367 per cent and mainland China tops the market
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The Asia-Pacific region’s commercial property investments surged in the first quarter, according to data tracked by analysts, as early signs of recovery in office and retail segments across Hong Kong and mainland China boosted deal volumes.
Total investment in offices, retail spaces, industrial units, data centres, hotels, apartments, senior housing and other asset classes climbed 22 per cent to US$51.1 billion from the same period in 2025, data from MSCI showed.Hong Kong contributed US$1.8 billion, a 367 per cent surge, the second-biggest improvement after Singapore’s 439 per cent increase, according to the data and analytics firm.
AdvertisementThe mainland was the top market, cornering US$13.4 billion, a 55 per cent rise. In the previous quarter, Japan was the top market, accounting for US$10.1 billion out of the US$47.6 billion total. The mainland was the second-largest market with US$8.2 billion.
Knight Frank estimated Asia-Pacific investment activity at US$64.6 billion, rising 13 per cent quarter-on-quarter and 65 per cent year-on-year, the strongest quarterly performance since late 2021.
Advertisement“Asia-Pacific’s real estate recovery has gained real breadth in the first quarter and Hong Kong was one of the key markets behind the growth in deal activity,” said Benjamin Chow, head of private assets research for Asia at MSCI.
“Deal volumes in the Hong Kong market are still modest in absolute terms compared with the longer run, but investors can draw encouragement from the fact that the market has recovered from its low point and maintained its level of activity up until early 2026,” Chow said. “Corporate and owner-occupier buyers have led the office recovery, and the retail sector is also showing early signs of life.”AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x