CBRE

FIGURESIASIAPACIFICIQ32025

since2021amidresilientoccupiermarkets

+4.1%/+3.6%

APACGDPGrowth(2025F/2026F)

22.4%/21.7%

APACNetEmploymentoutlookca22025/a32025)

+3.6%/+2.8%

TABLE1:QuickFigures

APACIndustrialproduction(2025F/2026F)

Note#:Thenetemploymentoutlookiscalculatedbytakingthepercentageofemployersanticipatinganincreaseinhiringactivityandsubtractingthisfromthepercentageofemployersexpectingadecreaseinhiringactivity.

Executivesummary

-

stricterofficeattendancemandates.GradeAofficenetabsorptiongrew10%y-o-y,reaching14.5millionsq.ft.NFAforthequarter.TMTandfinanceleddemandacrossmostmarkets.Rentsfellslightlybutincreasedifmainlandchinamarketsareexcludedfromthedata.

-

reportedanincreaseinleasingenquiriesandsitevisitsasimprovedclarityonglobaltradepolicy

instilledretailerswithgreaterconfidencetoproceedwithexpansion.Rentsedgedupby0.2%q-0-q.

-

demandlargelydrivenby3PLsanddomestice-commerceoperators.whileasurgeinshort-termleaseswasobservedasoccupierspreparedfortheupcomingfestiveseason,rentsfell1.8%q-0-q.

--o-

billioninQ32025,thehighestquarterlyvolumerecordedsince2021.InvestmentvolumeinJapan

increased129%q-o-qtous$14billion,withactivityacrossallmajorsectorsregisteringsolidgrowth.officeinvestmentreboundedstrongly,withvolumerising85%q-o-q,primarilyduetorobustactivityinJapanandkorea.

source:CBREResearch,ManpowerGroupEmploymentoutlooksurveyQ32025&Q42025,oxfordEconomics,october2025.

Totalvolume

+28%

+15%

cross-border

-37%

-3%

Rents

-0.4%

-1.1%

capitalvalues

1.6%

5.1%

Rents

+0.2%

+0.9%

capitalvalues

-0.5%

-0.5%

Rents

-1.8%

-4,7%

capitalvalues

2.3%

7.3%

source:CBREResearch,Q32025.

*Transactionsincludedealsaboveus$10millionintheoffice,Retail,Industrial,Hotel,Residential(Incomeproducing),Mixedandothercommercialsectors,usingfixedexchangerates

Economy

Exportgrowthremainsstrongasu.s.reachestradedeals

severalAsiapacificmarketsstrucktradedealswiththeu.s.inQ32025,leadingtheTrump

administrationtocuttariffrates.Howeverasofoctober29,2025,India,TaiwanandNewzealandhadyettoreachagreementswiththeu.s.,withIndianexportsfacingtariffsofupto50%.Mainlandchinasecuredreducedtariffsof47%afterameetingbetweenpresidentsTrumpandxi.TherestofAsia

pacificfacestariffratesofbetween10%and20%,

De-escalatingtradetensionhelpedtheAsiapacificeconomydisplayresilientperformanceinQ32025.overallexportscontinuedtoregisterstronggrowthinTaiwan(+36.6%y-o-y),vietnam(+18.8%y

andHongkongsAR(+15.0%y-o-y).ExportsrecordedrobustgrowthinIndia(+11.2%y-o-y)despitesteepu.s.tariffs.

ThecontinuedstrengthinexportshelpedtobolsteroverallGDpgrowthinvietnam(+8.2%y-o-y)andkorea(+1.7%y-0-y).Incontrast,GDpgrowthslowedinmainlandchinaandsingaporeto+4.8%y

and+2.9%y-o-y,respectively.

selectedmarketspauseinterestratecuttingcycle

Amidconcernaboutdownsideriskstoemploymentintheu.s.,theFederalReservecutpolicyratesbyatotalof50bpsinseptemberandoctobertoarangeof3.75%-4.00%.However,theFedalsosignalledthepossibilitythatitmaynotproceedwithafurtherratecutatitsDecembermeetingastheu.s.

governmentshutdownishinderingthereleaseofkeyeconomicdata.Nevertheless,themarket

consensusisfortheu.s.policyratetobecutby25bpsinthenextandfinalFedmeetingoftheyear.

InterestratescontinuedtofallinseveralAsiapacificmarketsthisquarter,includingNewzealand(-

75bps),singapore(-72bps)andAustralia(-25bps).However,centralbanksinmainlandchina,Indiaandkoreapausedtheirratecuttingcycleduringtheperiod.InHongkongsAR,asofoctober29,2025,the3-monthHIBORhadreboundedby+188bpssinceQ22025,butisstilldown-81bpsy-t-d.

TheBankofJapan(BOJ)heldratessteadyinQ32025afterimplementingonehikeatthestartoftheyearasthecountrysawtheresignationofitsprimeministerandthesubsequentelectionofanew

leader.whileJapan'snewprimeministergenerallyfavourseasymonetarypolicy,financialmarketsstillexpectaratehikeeitherattheendofthisyearoratthebeginningof2026.

FIGURE1:AsiapacificGDPGrowthForecast(y-0-y%)

TABLE2:keyInterestRatechanges

NewzealandcashRate2.50175bps75bps

singapore3MSORA1.34173bps72bps

Indonesia

7-DayRepoRate

4,75125bps

75bps

philippines

ReverseRepoRate

4.75100bps

-50bps

India

policyRepoRate

5.50100bps

Flat

HongkongsAR

3MHIBOR

3.5681bps

+188bps

Thailand1-DayRepoRate1.5075bps25bps

Australia

cashRate

3.6075bps

25bps

korea

BaseRate

2.5050bps

Flat

Malaysia

overnightRate

2.7525bps

25bps

Mainlandchina

1YLoanprimeRate

3.0010bps

Flat

Taiwan

DiscountRate

2.00Flat

Flat

vietnam

DiscountRate

3.00Flat

Flat

JapankeypolicyRate0.50+25bpsFlat

source:CBREResearch,Macrobond,october2025.

capitalvalues-1.6%q-o-q

Rentalvalues-0.4%q-o-q

InvestmentTurnover

+55%y-o-y

Leasingstaysresilientasoccupiersentimentstrengthens

RegionalofficeoccupiersentimentstrengthenedinQ32025,drivenbyeasingtradetensionandstricterofficeattendancemandates.overallGradeAofficenetabsorptiongrew10%yo-y,reaching14.5millionsq.ft.NFAforthequarter.CBRE'S

foundthatmostmarketsreportedanuptickintenantenquiriesandinspections,withtheexceptionofcitiesinmainlandchina.

India'stierIcitiescontinuedtoleadregionalnetabsorption,fuelledbytheongoing

expansionofdomesticfirmsandGlobalcapabilitycentres(GCCS).DelhiNCR,Bangalore,andMumbaicollectivelygained8.7millionsq.ft.ofnetabsorption,a6%q-o-qincrease.

otherupbeatmarketsincludedHongkongsAR,wherenetabsorptionreacheditshighestquarterlylevelsinceQ32018.InAustralia,corelocationsinsydneyandBrisbanesaw

improvedmomentum,supportedbyflighttoqualityandlargercorporationsseekingspace.

DemandinTokyoremainsrobust,underpinnedbythereturntoofficeandlargeoccupiers'focusonstaffretention.However,netabsorptionslowedto600,000sq.ftamidtight

availabilityandlimitednewsupply·Mainlandchina'stierlcitiesmaintainedpositivenet

absorptionat2.9millionsq.ft.,butgrowthslowedassomeoccupiersturnedmorecautious.

TMTandfinanceremainkeydrivers;flexsectorstrengthensinIndia

TMTandfinanceleddemandacrossmostmarketsinQ32025.TherobustdevelopmentofAIcontinuedtosupportleasingactivityinmainlandchina.Inshanghai,TMTaccountedfor22%ofnewleasingvolume,narrowlybehindthefinancesector,with23%.InBeijing,theTMTsectorcomprisedonethirdofnewleasingactivity,withmostdealsinvolvingrelocations

initiatedbyAl,bigdata,cloudservicesandonlinegamingcompanies.

Inseoul,financeandmanufacturingaccountedfor40%ofcBDdemand,drivenbyrelocationrequirements.Bankingandfinancecomprised23%oftotalleasingvolumeinHongkong

SAR,makingitthelargestdemanddriver,ofwhichhalfcamefrommainlandchinesefirms.Duringthequarter,demandfromtheflexibleworkspacesectorpickedupinselected

markets.TheseincludedIndia,wheretheflexsectorcontributed21%oftotalleasingvolume,fuelledbytheIpoboom,ensuringitsurpassedthefinancesectorintermsofdemand.

FIGURE2:AsiapacificofficeNetAbsorptionandNewsupply

50,000

40,000

30,000

20,000

a1Q2Q3mmQ4AnnualGradeANewsupply

source:CBREResearch,Q32025.

FIGURE3:vacancyRateandDevelopmentpipeline

vacancyedgesdownasregionalsupplyeases

NewGradeAofficesupplyinAsiareached13.2millionsq.ft.inQ32025,mainlyconcentratedinIndiaandmainlandchinatierIcities(ex.Beijing).InIndia,DelhiNCR,BangaloreandMumbai

contributed5.9millionsq.ft.ofnewstock,withDelhiNCRaloneaccountingforaround50%oftotalsupply.some5.4millionsq.ft.ofnewstockwasdeliveredinmainlandchina,with

shenzhencontributingmorethanhalf(3.2millionsq.ft),followedbyGuangzhouandshanghai.

AsiaGradeAofficevacancyfellslightlyto18.2%,adropof0.1%q-0-q.strongerleasing

sentimentandeasingsupplypressurehaspusheddownvacancyinmostmarkets·Hongkong

SARsawvacancycontractamidrisingdemandinthecBDcore,whileTokyovacancyreached

1%amidlimitedsupply.AvailabilityinBangalore'SORRremainedtightthankstosustained

demandfromGccsandglobalbusinessoutsourcing.Lowervacancyinsingaporewasdrivenbyrelocationsandexpansionsacrossmultiplesectors.Inmainlandchina,vacancyfellinBeijing

andshanghaiassupplyeased.

Rentalperformancecontinuestodiverge

CBRE'SAsiapacificGradeAofficeRentalIndexdeclinedby0.4%q-o-qinQ32025but

increasedby1.4%q-0-qifmainlandchinamarketsareexcludedfromcalculations.keycitiesinGreaterchinaweretheonlymarketstorecordrentaldeclinesthisquarter,withthefallinsouthchinaacceleratingamidanupturninnewsupply.InHongkongsAR,therentaldecline

narrowed,indicatingstabilisationsupportedbyreneweddemandfromthefinancesectorandastrongIpopipeline.InTOKYO,neteffectiverentalgrowthreached3.8%q-o-q,thehighestsince2007,astightavailabilityandrobustdemandcontinuedtosupportrents.

InAustralia,nationaleffectiverentsroseby2.3%q-o-q,surpassingthepreviouspeaksetinQ42019.However,growthmomentumislargelyconcentratedinpremiumassetswithinsydneyandBrisbane'scorelocations,whileothermarketsshowinglimitedupside.occupierscontinueto

demandelevatedlandlordincentivestooffsetrisingfit-outcostsandprotectbalancesheets·

Rentsinseoulcontinuedtorisebutgrowthislosingmomentumfromthecurrenthighbase.InIndia,rentalgrowthwasobservedacrossmostmarkets,withthoseinMumbaiBkcsurgingbyarecord-high10%q-o-q,drivenbylimitedavailability,flexoperatorexpansionandnewpremiumsupplyreleasedbyanowner-occupier.

FIGURE4:AsiapacificGradeAvacancy(%)

25

AsiapacificAsiaAsia(excludingMainlandchina)pacific

12%

10%

4%

2%

-2%

-4%

-6%

-8%

pacific,whileGradeAaskingrentsareusedforothermarkets.source:CBREResearch,Q32025.

capitalvalues-0.5%q-o-q

Rentalvalues+0.2%q-o-q

Retail

InvestmentTurnover-29%y-o-y

Retailsalesgrowthshowssteadymomentum

AsiapacificretailsalesshowedsteadyperformanceinJulyandAugust.populationgrowthandratecutssupportedhouseholdspendinginAustralia,whilegrowthinvisitorarrivalsunderpinnedretailsalesgrowthinsingaporeandHongkongsAR.Inkorea,improvingconsumersentimentafterthe

presidentialelectionandincreasinginternationaltouristarrivalsboostedsales.

Retailsalesgrowthinmainlandchinaweakenedthisquarterastheeffectofthegovernment's

spendingstimulusstartedtowinddown.InJapan,consumptionactivityslowedduetoinflation,

resultinginnegativeretailsalesgrowthinAugust,thefirsty-o-ydeclineafterthreeyearsofpositiveperformance.

Leasingdemandpicksupbutretailerskeepcostsinmind

MostmarketsreportedanincreaseinleasingenquiriesandsitevisitsinQ32025asimprovedclarityonglobaltradepolicyinstilledretailerswithgreaterconfidencetoproceedwithexpansion.Nevertheless,moreretailersoptedtorelocateexistingstoresratherthanopennewones.Retailers'preferencefor

primecoreareasandhighoccupancycostsforsuchspaceisforcingthemtobemoreconservativeaboutexpansionplans.

F&B,fashion,andsports&athleisurebrandscontinuetoleaseprimespaceacrosstheregion.F&B

remainsakeysourceofdemandinmostmarketsasconsumersturnmorewillingtospendon

experience.MainlandchinaF&BbrandsareactivelyexpandingintoemergingsoutheastAsia,often

targetingnewshoppingcentres.otherkeytrendsincludeup-and-comingsports&athleisurebrandsseekingprimecorelocationsinTokyoandseoulforflagshipstores.Insingaporeandmainlandchina,gymandwellnessfacilitiesareexpandinginshoppingcentrestocapturethegrowingwellnesstrend.otheractivesectorsincludeonlineretailersinIndiaexpandingintophysicalstorestocapturedemand.

Expansionfromluxurybrandshasweakenedamidaglobalslowdowninluxurysales.Insteadof

openingmorestores,retailersinthiscategoryarefocusingonestablishingasingleflagshipstoretoaddressbrandexperienceanddifferentproductlines.storescarryingsecondhandluxuryitemshavealsobeennegativelyimpacted.

FIGURE6:y-0-YGrowthinoverallRetailsalesinselectedMarkets

Q32024Q42024Q12025Q22025Q32025

source:CEIC,CBREResearch,october2025.

FIGURE7:RetailLeasingsentiment

source:CBREResearch,september2025.

Availabilitysettotighten;supplyconcentratedinmainlandchinaandBangkok

MainlandchinatierIcitiesandBangkokbothsawthecompletionofsubstantialnewsupplyinQ3

2025,withtheformeraddingaround5millionsq.ftandthelatterwelcomingaround600,000sq.ft.

includingtheopeningofcentralpark.Despitesteadypreleasinginnewsupply,vacancycontinuestoedgeupinthesecitiesamidsluggishoccupancyinnon-primeareas.

whileoverallleasingmomentuminHongkongsARremainedupbeat,primestreetvacancyincreasedassomeleasesexpiredandmosttransactionsoccurredoutsideofcBRE'sbasket.InTOKYO,strong

demandinprimespaceabsorbednewsupply,ensurevacancyremainedlowinmostkeysubmarkets.

ThebulkofupcomingsupplyisconcentratedinmainlandchinatierIcities,withcloseto40million

sq.ft.ofnewshoppingcentrestockexpectedtoopeninQ42025and2026.othermarketswithlargenewsupplyincludeBangkok,with3millionsq.ft.dueduringthesametimeframe.Landlordsof

existingpropertieswillneedtoimprovetheirofferingtoensuretheirassetsstayrelevant.

Limitedavailabilityincorelocationdrivesrentgrowth

CBRE'SAsiapacificRetailRentalIndexedgedupby0.2%q-o-qinQ32025.Fuelledbyincreased

consumerdemand,regionalcentresinAustraliaperformedwell,withMelbourneseeingthestrongestgrowth.whilerentsinTOKYOGinzacontinuedtotrendhigherduetostrongretailerdemandanda

lackofavailability,thepaceofgrowthstartedtolosemomentumasrentsreachedahistoricalhigh.

Althoughmostmarketsreportedmildrentalgrowthoverthequarter,mainlandchinarentscontinuedtocontract.HochiMinhcitycBDrecordedthelargestdeclineinrentsacrosstheregion,mainlyduetothecompletionofonenewmallwithrentswellbelowmarketaverage.Nevertheless,theoutlook

remainspositiveforthismarketasavailabilityremainstight.

TheonsetofthefestiveseasonandtraditionalincreaseinleasingdemandduringQ42025shouldensureprimeretailrentscontinuetoriseinmostmarkets.However,rentsinmainlandchinawillcontinuetocorrectaslandlordsprioritiseoccupancyoverrents.

CBRE'SAsiapacificRetailcapitalvalueIndexfellslightlyinQ32025,withvaluesdroppingby0.5%qo-q.whilecapitalvaluesinmainlandchinaremainedonadownwardtrend,falling2.4%q-o-q,the

dropwasoffsetbyanincreaseinTOKYO,wherecapitalvaluesmovedinlinewithrents.

FIGURE8:RetailDevelopmentpipeline

Note:citywidesupplyistrackedexceptTOKYO(core),Australia(CBDandregionalcentres)andseoulmetropolitanarea

FIGURE9:Q-0-QRetailRentalchangeinselectedMarkets

Bangkok;andhighstreetsforHongkongsAR,Taipei,andTOKYO.

capitalvalues-2.3%q-o-q

Rentalvalues-1.8%q-o-q

Logistics

InvestmentTurnover-47%y-0-y

Resilientdemandsupportedbyshort-termleasingandflight-to-qualityrelocations

Regionalleasingmomentumcontinuedtorecoverfromprevioustariff-relateddisruption,withdemandinQ32025largelydrivenby3PLsanddomestice-commerceoperators.Asurgeinshort-termleaseswas

observedasoccupierspreparedfortheupcomingfestiveseason.CBRE'slatestAsiapacificLogisticsLeasingsentimentsurveyuncoveredstableexpansionarydemandbutgrowinginterestinupgrading,particularlyinIndiaandGreaterseoul.

Asmarketsadjusttotariff-relateddisruption,moreoccupiersarereassessingrelocationandrenewalstrategies,especiallyinmarketswithhigheravailability,suchasGreaterTokyoandGreaterosaka.

Flighttocoreandflighttoqualitystrategiescontinuedtodrivecommitmentstoprimeassetsinthesemarkets,

Leasingactivityinmainlandchinasoftenedthisquarterundertheweightofeconomicuncertaintyandtariffvolatility.whileshort-termleasesaheadoftheDoubleElevensalesperiodprovidedtemporary

support,netabsorptionremainednegativeasoccupiersreturnedspaceastheboostfromgovernmentconsumptionsubsidiesandfront-loadingexportactivitydiminished.InHongkongsAR,occupiers

stayedcautiousamidtheambiguoustariffoutlookdespitestrongexportperformance.Elsewhere,

Australiarecordeditsslowestquarterlytake-upin12monthsasdemandnormalisedfromastrongfirsthalf,althoughfull-yearvolumesarestillexpectedtosurpass2024levelsgiventhestrongpipeline.

Elevatedvacancycontinuestoweighonmarketperformance

severalmarketscontinuetostrugglewithhighvacancy,particularlymainlandchinacitiesandHong

kongsAR.Beijingvacancyhoveredataround30%,whilethatinshanghai,Guangzhou,andshenzhen

edgedhigherunderincomingsupply.southchinawasfurtherimpactedbyweakeningcross-bordere

commercedemand.HongkongsARvacancyclimbedto11.8%,markinganewhistoricalhighamidsofterleasingactivity.Invietnam'SNorthernRegion,recordquarterlycompletionspushedupvacancyfrom

17.3%to20.7%despitesoldleasingactivity.GreaterTOKYO'soverallvacancyeasedslightlyfrom10.9%to10.4%,supportedbystrongcommitmentsinnewprojectsintheGaikandoandken-0-doareas

singaporeprimelogisticsvacancydeclinedfurtherto6.4%,drivenbytheabsorptionofnewstockcompletedinH12025.

FIGURE10:NatureoftheFiveLargestindustrial&logisticsEnquiriesReceivedoverthepastMonth

source:AsiapacificLeasingsentimentIndex,CBREResearch,Q32025.FIGURE11:LogisticsvacancyRate

supplypipelineremainssubstantialdespiteslowingmomentum

RegionalsupplymoderatedinQ32025followingastrongH12025,with35millionsq.ft.completedduringthequarter.Thisbroughtthey-t-dtotalto106millionsq.ft.,roughly65%oftheannual

forecast,underscoringtheextentofQ42025'spipeline.Japanandmainlandchinaaccountedfor

overhalfofthetotalvolume,withGreaterTokyoleadingtheregionat4.2millionsq.ft.TwoofthethreenewcompletionsinGreaterTokyoachievedhighoccupancyrates,supportedbydemandfromtheconsumergoodssector.Elevatedsupplyinmainlandchinacontinuedtopushupvacancy,withshanghaiandGuangzhoucollectivelyaccountingforaboutone-quarteroftheregionaltotal.

Newsupplyisforecastedtoslowfrom162millionsq.ft.in2025to145millionsq.ft.in2026.

Mainlandchinawillremainthelargestcontributor,ledbyGuangzhou,Beijingandshenzhen.

Australia'spipelinewillexpandaboveitshistoricalaverage,withsydney'ssupplyneardoublingits2025level,promptinglandlordstoofferincentivesforprecommitments.Attheotherendofthe

scale,newsupplyinJapanwillshrinkfurther,withGreaterosakacompletionsdroppingsharplyto5.9millionsq.ft.in2026,NewstockinGreaterTokyowillremainlargelystableandwellbelowits20232024peak,whichwillprovidesupportforasoftrentalrecoveryin2026.

Greaterchinamarketsweighonregionalrents

CBRE'SAsiapacificLogisticsRentalIndexfellby1.8%q-o-qinQ32025,acceleratingfromlast

quarter's1.5%drop,whilethecapitalvalueIndexretreatedby2.3%q-o-q.citiesinmainlandchinarecordedthesharpestdeclines,withBeijingcorrectingby5.3%,followedbyshanghai(-3.7%)andGuangzhou(2.6%),aslandlordsslashedrenttomaintainoccupancy.shenzhenremainedthemostresilientamongtierIcities,supportedbyalackofnewstockandsomespillover3PLande-

commercedemandreturningfromperipheralmarkets.HongkongsARrentsfell3.7%q-o-q,thesteepestdropsince2009,understrongdownsizingactivity.

RentsremainedflatacrossmostIndiancities.ontheupside,rentsinBrisbaneandsydneygrewby4.3%and0.7%q-o-q,respectively,onafacelevel,underpinnedbystrongtake-upinnew

completions.However,elevatedincentivelevelskeptsydneyrentsinnegativeterritoryforthequarterandonay-t-dbasis.Rentsinsingaporeandvietnam'ssouthernregionincreasedamidtighteningvacancy.

FIGURE12:LogisticsDevelopmentpipelineinMajorMarkets

FIGURE13:Q-o-QLogisticsRentalchangeinselectedMarkets

4%

3%

2%

-1%

-2%

-3%

-4%

-5%

-6%

Note:Rentalchangesformainlandchinesecitiesadoptlikeforlikerentalchange.source:CBREResearch,Q32025.

Investment

TotalInvestmentTurnover+15%y-o-y

crossBorderTurnover-3%y-o-y

Investmentvolumereboundstohighestquarterlytotalsince2021

Asiapacificcommercialrealestateinvestmentvolumeincreased28%q-o-qtous$41.8billioninQ32025,thehighestquarterlyvolumerecordedsince2021.

InvestmentvolumeinJapanincreased129%q-0-qtous$14billion,withactivityacrossallmajorsectorsregisteringrobustgrowth.oneofthelargestdealstookplaceinosaka,where

MitsubishiuFJFinancialGrouppurchasedosakaDojimahamaTowerforus$678million.Inkorea,investmentturnoverwentupby33%q-o-qtous$7billion,astheofficesectoronceagaindominatedactivity.TheacquisitionofpangyoTechoneTowerinseongnambya

domesticpropertyfundforus$1.4billionwaskorea'slargesttransactionthisquarter.

singaporeandIndiaalsowitnessedanuptickininvestmentvolume.volumeinIndiarose71%qo-qtous$1.6billion,whileturnoverincreased26%q-o-qinsingapore.onemajortransactioninsingaporewaskeppelsustainableurbanRenewalFund'spurchaseofJemfromLendlease

GlobalcommercialREITforus$360million.

Investmentvolumeinmainlandchinafell21%q-o-qtous$7.8billion.Baincapital'ssaleofaportfolioofdatacentrestoGuangdongHEC,achinesetechnologycompany,forus$3.9billionwaslargestdealinthismarketandcomprisedabout50%ofthecountry'stotalvolumeforthequarter.HongkongsARreportedadecreaseof-5%q-o-qininvestmentactivity,althoughthenumberoftransactionsincreased94%q-o-q,drivenmainlybysmalldeals.

whileinvestmentvolumeinAustraliadeclinedbyamagnitudeof16%q-0-qtous$3.9billion,therewasanotablerecoveryinactivityintheofficesector,wherevolumeincreased53%q-o-q.TheofficesectorinMelbournewasparticularlyactive,withthecitycomprisingalmosthalfoftotalofficeinvestmentvolumeinAustraliaduringthequarter.

officeinvestmentreboundedstronglyinQ32025,withvolumerising85%q-o-q,primarilyduetorobustactivityinJapanandkorea.Thesetwomarketscombinedaccountedforalmosttwothirdsoftheregion'sofficeinvestmentvolumethisquarter.Industrialinvestmentincreasedby13%q-o-q,bolsteredbyregionalcitiesinJapan,butretailinvestmentcorrectedby55%q-0-qafterastrongQ22025.

Figure14:TransactionvolumebyMarket

Note:Transactionsincludedealsaboveus$10millionintheoffice,Retail,Industrial,Hotel,Residential(Incomeproducing),Mixedandother

commercialsectors

*othersEAsiaincludesMalaysia,Indonesia,philippines,Thailandandvietnamsource:CBREResearch,Q32025.

Figure15:Transactionvolumebysector

yieldtrendsdivergeacrossregion

yielddecompressioncontinuedtobewitnessedacrossallmajorsectorsinmainlandchinainQ32025assupplypressureandfallingrentsweighedoninvestorsentiment.yieldsinthismarketsoftenedbyasmuchas20bps,aswaswitnessedforGuangzhouoffices.ontheotherhand,shanghailogisticsyieldsheldstable.InHongkongsAR,yieldsacrossmajorsectorsalsoremainedrelativelyflatthisquarter.

Theyieldexpansioncyclealsocontinuedforperthoffices.However,yieldsforsydneyofficesshowedsignsoftighteninginQ32025,fallingby10bps.TheretailandindustrialsectorsinAustraliaalsoregisteredtighteningyieldsduringtheperiod.Regional

shoppingcentreyieldsfellbetween5bpsand15bpsacrossthecountry'smaincities,whileyieldsforlogisticspropertiescompressedbyupto20-25bpsinBrisbane,perthandAdelaide.

yieldsforseoulofficesshowedadownwardtrendof5bpsinQ32025amidrobust

investmentinofficeassetsduringthequarter.InJapan,primeyieldsacrossallmajor

sectorsheldsteadyinTOKYO.similarlyinsingapore,yieldsdisplayedlimitedmovement.

BorrowingcostscontinuedtofallinmostmarketsacrossAsiapacificasbenchmark

interestratesdroppedfurther.substantialdeclineswereregisteredinNewzealand,

singaporeandAustralia,wheredebtcostsdroppedby70bps,60bpsand30bps,

respectively.ontheotherhand,amidvolatilityinthe3-monthHIBORinHongkongsAR,lendingratesreboundedby185bpsafterfalling220bpsinQ22025.

Inkorea,borrowingcostsfellatamoremodestmagnitudeofgbps.ThecostofdebtinmainlandchinaandJapanbothheldstablethisquarter,inlinewithpolicyrateswhichalsoremainedunchangedinthesetwomarkets.

onbalance,yieldspreadsaregenerallymostpositiveinmainlandchinesecitiesduetoacombinationofyielddecompressionandlowborrowingcosts.Incontrast,Hongkong

SARrevertedtonegativecarryinQ32025giventhereboundinlendingrates.citiesinIndiaalsoprovidesignificantnegativecarrygivenhighborrowingcostsinthismarket.

FIGURE16:primeyieldtoRelativeBorrowingcosts(spread)

centres

source:CBREResearch,Q32025.

FIGURE17:yieldsbyMarketandsector

outlook

OFFICE

Regionalofficeleasingactivityisexpectedtofurtherstabiliseonthebackofimprovedclarity

aroundtheglobaltradeenvironment.Brightspotswillincludecontinuedflight-to-qualityand

flight-to-coredemandastenantsturnmoresel