Asia-Pacific Real Estate Still Drawing Investors As Sector Preferences Shift

Asia-Pacific real estate is still expected to attract investors as buyers shift sector preferences rather than retreat from the market, according to analysts cited after the US Federal Reserve’s first interest rate increase in more than three years this month.

Strategy shifts, not a broad pullback

Property markets in the region are likely to remain attractive even as uncertainty over monetary policy has increased, analysts say.

Several asset classes and sectors are expected to draw investor interest in this higher-rate environment, according to the assessment.

Emily Fell, senior director for living sectors in Asia-Pacific capital markets at Savills, said cross-border activity has strengthened in the region.

“We’ve seen volumes, specifically cross-border volumes in the region, increase by around 30 per cent to date,” Fell said.

She said the change in investor behaviour was not simply a broad retreat from property markets.

“I think, as opposed to seeing a pullback generally, it’s more a change in strategy and a pivot in sector [focus],” she said.

Mainland China leads regional activity

Mainland China was the Asia-Pacific region’s most active real estate market in the second quarter of 2026, according to financial data provider MSCI.

Investment there surged 154 per cent year on year to US$13 billion in that quarter, MSCI data showed.

Japan ranked second in the region, with US$9.7 billion worth of deals.

Australia followed with US$8 billion in deals.

The figures point to continued investor activity across major Asia-Pacific markets even as monetary-policy uncertainty has become a larger consideration after the US Federal Reserve’s rate move.

The market context also shows why investors are adjusting their strategies, with analysts identifying both higher-rate uncertainty and a shift in sector focus rather than a general withdrawal.

Source: South China Morning Post