Singapore real estate drives APAC rebound with sharp rise in cross-border deals

SG inflows surged to $7.3b as office-led investment lifts regional volumes 64.7% YoY.

Singapore recorded $7.3b (USD5.7b) in cross-border real estate investment in the first quarter (Q1) of 2026, up from under $1.28b (USD1b) a year earlier, driven largely by a major portfolio transaction involving institutional-grade office assets and a retail mall, according to Knight Frank’s Asia-Pacific Capital Markets Insights.

Retail investment in Singapore also rose to $1.41b (USD1.1b) during the quarter, supported by transactions including Hines’ acquisition of Bukit Panjang Plaza from CapitaLand Integrated Commercial Trust for $431.63m (USD337m).

The Singapore activity formed part of a broader regional recovery in Asia-Pacific real estate investment, which reached $82.74b (USD64.6b) in Q1 2026. This represented an increase of 13% quarter on quarter (QoQ) and 64.7% year on year (YoY), marking the strongest quarterly performance since Q4 2021.

Cross-border capital across the region more than doubled year on year to $28.7b (USD22.4b), accounting for 34.8% of total investment activity. Sovereign wealth funds and institutional investors contributed $16.39b (USD12.8b) of inflows, up from $11.01b (USD8.6b) in Q1 2025.

Japan remained the largest destination for cross-border capital at $7.68b (USD6b), with demand focused on office and living assets supported by low vacancy rates and stable leasing conditions. Notable transactions included Brookfield Asset Management’s acquisition of the Dentsu Headquarters Building for nearly $2.56b (USD2b).

South Korea recorded $1.79b (USD1.4b) in cross-border investment, up 45% YoY, with logistics assets accounting for 38.8% of activity. KKR’s acquisition of Shinsegae Food Hub for $257.57m (USD201.1m) was amongst the key deals in the market.

Office assets remained the largest sector for investment across Asia-Pacific, with volumes rising 46.7% YoY to $30.1b (USD23.5b). Knight Frank said activity was supported by demand for prime income-generating assets in key developed markets, alongside a widening gap between Grade A buildings and older stock.

Regional office rents rose 0.8% QoQ, with 18 of 24 cities reporting stable or higher rents.

Knight Frank said the Q1 2026 results point to a shift in capital allocation patterns, with investors increasing deployment into core assets following a period of price discovery in earlier quarters.

The consultancy expects investment activity to remain steady but selective in Q2 2026, with geopolitical risks and interest rate expectations likely to influence transaction timing and pricing dynamics.