HK regains post as amongst top APAC investment destinations

Investors shifted focus to properties with sustained rental growth.

Hong Kong has returned to the top five preferred cross-border investment destinations in Asia Pacific, securing fifth place after a brief hiatus last year, according to CBRE Hong Kong.

The recovery was underpinned by a shift in investor sentiment, with both local and mainland Chinese buyers showing a strengthened appetite for Hong Kong assets.

Analysts said that investors were steering away from the defensive strategies of previous years to focus on properties capable of delivering sustained rental growth, particularly in supply-constrained segments.

The “living” sector had emerged as a primary engine for this growth, as student accommodation became a standout asset class due to high immigration levels and a shortage of housing.

This led to a surge in hotel-to-student-accommodation conversions—a trend that began in 2025—and was expected to dominate the market throughout 2026 as demand continued to outpace supply.

The region’s office market also saw a localised boost from a specific buyer profile, as corporate owner-occupiers from Greater China became increasingly active, acquiring office assets for their own use rather than purely for rental yield.

Ada Choi, Head of Research, Asia Pacific for CBRE, noted that the 2026 momentum was supported by a focus on “high-quality assets with visible income durability.”

Reeves Yan, Head of Capital Markets, CBRE Hong Kong, highlighted that the market was benefiting from investors seeking repurposing opportunities, particularly in the hotel and residential sectors, to meet the evolving needs of the city's population.