'Lower debt costs' drive 2026 investor intentions: survey

The living and hospitality sectors are seeing multiple hotel-to-student-housing conversions.

Singapore has risen to joint third place amongst Asia-Pacific’s most preferred markets for cross-border real estate investment, according to CBRE's 2026 Asia Pacific Investor Intentions Survey.

Singapore tied with Seoul in the latest rankings, behind Tokyo and Sydney, as global capital continues to flow into the region’s property markets.

The growth was driven by a surge in investors favouring core and core-plus strategies, underpinned by significant reductions in debt costs in 2026.

Cross-border investments by Singapore-based entities surged 453.3% quarter-on-quarter in the third quarter of 2025, according to Knight Frank. Total outbound investment reached $4.6b, marking a 22.5% increase year-on-year, with deal-making continuing despite macroeconomic headwinds.

Separately, the city-state accounted for 2.5% of global cross-border capital targeting standing assets in the first quarter of 2025, as per Colliers and MSCI Real Capital Analytics’ GCM Global Capital Flows APAC June 2025 report.

Singapore-originated cross-border investments into standing assets reached $4.9b (US$3.9b) over the past 12 months, with a significant portion remaining within the Asia-Pacific region.

Meanwhile, Tokyo retained its top position for a seventh consecutive year, buoyed by Japan’s relatively low debt costs and stable, growing cash flows that continue to attract international investors.

Sydney ranked second, supported by sustained demand for prime central business district office assets and expectations of further landmark transactions in 2026 after several major deals closed in 2025.

Seoul jumped from eighth place last year to tie with Singapore, fuelled by a recovery in logistics investment and a broadening range of investable sectors including hotels, multifamily housing and data centres.

Hong Kong SAR returned to the top five after dropping out of the top 10 previously, ranking fifth on the back of rising interest from mainland Chinese investors.

The living and hospitality sectors have been particular beneficiaries, with 2025 seeing multiple transactions involving the conversion of underused hotel properties into student accommodation, a trend expected to persist this year.