Asia Pacific commercial property investment reaches $65.6 billion in Q3

Asia Pacific commercial real estate investment reached $65.6 billion in the third quarter of 2026, up 17.9% from the previous quarter and 7.3% year over year, according to Knight Frank figures reported by IREI. Knight Frank said the quarter was the second-strongest on record. Year-to-date volume rose 29.3% to $183.4 billion.

Retail volume reached $12.5 billion, up 54.3% year over year from $8.1 billion. CapitaLand Integrated Commercial Trust's $3 billion acquisition of Paragon on Orchard Road in Singapore accounted for nearly a quarter of regional retail investment.

Australia added three more large trades, all for 50% interests. Cbus Property paid $914.2 million for stakes in Westfield Carindale and Lakeside Joondalup. GPT Wholesale Shopping Centre Fund paid $836.9 million for Sunshine Plaza and Macarthur Square. Australian Retirement Trust paid $620.6 million for Westfield Mt Gravatt, a deal Private Wealth Daily covered when it was announced in August.

A half-interest sale sets the price at which a manager can raise cash without exiting an asset, and it is the mark other Australian retail vehicles will be tested against. Knight Frank attributes the Australian sales to a combination of fund liquidity and recapitalization on the sell side.

Rising borrowing costs are beginning to weigh on liquidity and returns, according to the report, even as demand for prime assets with resilient income holds.