(July 23, 2026, HONG KONG) – Select markets across developed Asia, including Tokyo, Seoul, Singapore, and Sydney, are benefiting from durable demand and constrained future supply, creating a growing scarcity advantage for investors, according to Hines’ 2026 Mid-Year Outlook released today.
Hines Research finds Tokyo’s office sector among the strongest globally, while industrial fundamentals have strengthened in the market as vacancy declines and rent growth accelerates. The report also highlights compelling opportunities in Singapore and Sydney’s necessity-led retail assets, where dominant urban and transit-served locations, limited new supply, and sustained demand are creating favorable conditions for rental growth. In the living sector, Seoul stands out with a favorable medium-term outlook, supported by wage growth, rising single-person households, and tight housing supply, which have continued to support above-inflation rental growth.
“Across Asia-Pacific, broad regional trends have become less important than local market dynamics,” said David Steinbach, Global Chief Investment Officer at Hines. “The strongest investment opportunities have become increasingly concentrated in markets where long-term demand remains durable but future supply is difficult to deliver. That’s making selectivity more important than ever.”
As competition for well-located assets intensifies, Hines believes investors will increasingly benefit from recognizing the scarcity advantage in markets where durable demand is reinforced by meaningful barriers to future supply.
“Finding compelling opportunities in developed Asia will require more than simply identifying where demand will grow,” said Chiang Ling Ng, Global Co-Head of Investment Management at Hines. “While demand identifies where opportunities may emerge, it is the ability of supply to respond that often determines the durability of returns. We believe some of the strongest opportunities are emerging where supply remains constrained.”
Among the report’s findings:
- Tokyo office and industrial: Tokyo office remains one of the strongest office markets globally, while industrial fundamentals have strengthened as vacancy declines and rent growth accelerates following a recovery from recent overbuilding.
- Singapore and Sydney retail: Defensive retail in Singapore and grocery-anchored retail in Australia continue to show resilience, supported by strengthening fundamentals, population growth, and limited new supply; Sydney regional shopping centres remain a preferred subsector with accelerating rental growth.
- Seoul living: Above-inflation rent growth persists, driven by wage gains, rising single-person households, and constrained supply, supporting a favorable medium-term outlook.
- Scarcity advantage: Higher construction costs, development risk, and financing costs can delay new supply in many markets, creating scarcity that could ultimately support stronger rent growth over time.
The full 2026 Hines Mid-Year Outlook is available at: https://www.hines.com/2026-mid-year-outlook.
About Hines
Hines is a leading global real estate investment manager. We own and operate $91.7 billion¹ of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 4,600 employees in 30 countries draw on our 69-year history to build the world forward by investing in, developing, and managing some of the world’s best real estate. To learn more, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of December 31, 2025.
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