Asia-Pacific property faces a slow, uneven recovery as high risk-free rates and weak growth limit investment demand and therefore, prospects for yield-driven capital gains. Spreads over risk-free rates remain tight across markets, aside from in Singapore. Australia is set to lead with over 6% annual returns in 2026-29, followed by Japan. Hong Kong will lag with negative returns amid structural headwinds. Apartments stand out as the sector achieving the strongest overall returns.
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