Hong Kong, Sydney and South Korea emerge as key targets as investors adjust strategies to a higher-rate environment, analysts say
Quick Look
Property markets in the Asia-Pacific region remain attractive despite monetary policy uncertainty after the US Federal Reserve's first interest rate hike in over three years, with Hong Kong, Sydney and South Korea identified as key targets as investors adjust strategies, according to analysts citing increased cross-border volumes and strong investment in Mainland China, Japan and Australia.
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Why It Matters
The US Federal Reserve delivered its first interest rate increase in more than three years this month, creating heightened uncertainty over monetary policy in the Asia-Pacific region.
Property markets in the Asia-Pacific region are likely to remain attractive despite heightened uncertainty over monetary policy after the US Federal Reserve delivered its first interest rate increase in more than three years this month, analysts say, with several asset classes and sectors expected to draw investor interest.
“We’ve seen volumes, specifically cross-border volumes in the region, increase by around 30 per cent to date,” said Emily Fell, senior director for living sectors in Asia-Pacific capital markets at Savills.
“I think, as opposed to seeing a pullback generally, it’s more a change in strategy and a pivot in sector [focus].”
Mainland China was the region’s most active real estate market, with investment surging 154 per cent year on year to US$13 billion in the second quarter of 2026, according to financial data provider MSCI. Japan ranked second with US$9.7 billion worth of deals, followed by Australia with US$8 billion.
Open Questions
- How long will the higher-rate environment persist?
- Which specific sectors within living sectors are seeing increased investor interest?
- What are the long-term implications for property prices in Hong Kong, Sydney and South Korea?







