Asia-Pacific property markets have performed largely in line with our mid-2025 forecasts, with investment activity recovering only moderately and returns held back by falling capital values. We expect weak returns to persist in 2026, reaching just 2.6%, as subdued economic growth causes rent growth to slow and elevated interest rates continue to weigh on valuations. Performance will vary widely across markets and sectors, with Australia and Korea leading, while Hong Kong remains firmly negative.
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