Savills: Hong Kong returns to the top five in cross-border real estate investment in 2026, marking the first time in six years that office buildings have become the most popular investment category.

According to the Colliers International's "2026 Asia Pacific Investor Intentions Survey," Asia Pacific investors are preparing to inject more capital into the commercial real estate market in 2026, driven by improving fundamentals of corporate tenants, reduced supply, and gradually easing financing environment. After failing to make it to the top ten cross-border investment destinations last year, Hong Kong has returned to the list this year, ranking fifth. In addition, the office sector has become the most popular investment category for the first time in six years. The survey shows that purchasing intentions in most Asia Pacific markets have further improved compared to last year, with over 57% of respondents expressing a desire to buy more real estate in 2026. Nicholas Tse, Director of Capital Markets at Colliers Hong Kong, said that the outlook for 2026 is clearly shifting towards growth, with investors moving away from defensive strategies in recent years. Overall net buying intentions have improved significantly, with investors in mainland China and the Hong Kong SAR showing stronger capital deployment intentions and an increasing focus on assets with sustainable rental growth potential, especially in limited supply markets. Mainland Chinese investors have shown a significant increase in interest in the residential and hotel sectors in 2025, with several hotel conversions into student dormitories to meet the growing demand, a trend expected to continue in 2026. The office sector has become the most popular investment category for the first time in six years, with the industrial and logistics and residential property sectors following closely behind to become the top three in the Asia Pacific region. Corporate owner-occupiers in Greater China have become more active in acquiring office assets, particularly in Hong Kong. At the same time, investors continue to expand their footprint in residential property assets, including mainstream build-to-rent and build-to-sell models. Student dormitories continue to perform well, especially in markets like Australia and Hong Kong, where demand continues to outstrip supply. Katherine Choi, Director of Research at Colliers Asia Pacific, said: "The most prominent aspect of 2026 is selectivity during the recovery process. Investors are focusing on markets where prices are clearer, operational demand is more resilient, and financing conditions are gradually improving. This combination is boosting confidence and increasing investors' willingness to deploy capital towards high-quality, income-stable assets." The survey shows that REITs, institutional investors, and large funds will be more active in 2026, continuing the warming trend seen in 2025. On the other hand, private investors and developers may become net sellers as they recycle capital and dispose of assets purchased during price adjustments in previous years. The main challenges for investors are: 1) rising labor and construction costs becoming the top challenge for investors for the first time since the survey began. 2) Continued geopolitical tensions, especially in mainland China and India. 3) Resurfacing interest rate risks, especially in Japan and Australia, driven by recent signals from central banks.