Investment volume rises 60% in Q1 2026

Buying intentions were region-high.

The real estate investment volume rose 60% YoY in the first quarter of 2026, outperforming the Asia Pacific average growth of 18%, according to CBRE’s Q1 2026 Asia Pacific Cap Rate Survey.

The market also recorded the strongest buying intentions in the region. CBRE said 71% of respondents reported stronger buying intentions in Hong Kong SAR compared with six months ago, whilst 29% said buying intentions were unchanged. No respondents reported stronger selling intentions.

Hong Kong also appeared relatively resilient to Middle East-related geopolitical tensions. The report showed 43% of respondents cited a positive impact on investment sentiment, whilst 29% saw a limited negative impact, 25% reported a moderate negative impact, and 4% cited a substantial negative impact.

However, financing remains a constraint. CBRE said most major markets continued to see an accommodative lending environment, but Hong Kong was the exception, with banks generally reluctant to issue new loans.

Indicative cap rates in Hong Kong varied by sector as of March 2026. Grade A offices in core locations stood at 3.00% to 4.25%, whilst decentralised Grade A offices were at 3.75% to 5.25%.

Core shopping malls recorded cap rates of 4.45% to 5.45%, whilst neighbourhood malls stood at 5.45% to 6.95%.

For logistics assets, institutional-grade facilities had cap rates of 4.90% to 5.75%, whilst traditional logistics facilities ranged from 5.25% to 6.20%.

Urban hotel cap rates stood at 4.40% to 5.60%, multifamily/build-to-rent at 3.40% to 4.50%, student housing at 4.45% to 5.25%, and fully fitted data centres at 5.00% to 6.25%.