Global Office Investment Recovers as Investors Target High-Quality Assets

After a prolonged period of adjustment since the pandemic, the office sector is showing clear signs of recovery. According to Savills World Research, global office investment reached US$208 billion in 2025, up 18% year-on-year. The office sector’s share of total global real estate investment also increased from 21% to 23%, reflecting a notable improvement in investor confidence. 

However, the recovery has not been uniform across the market. Investors are no longer taking a broad-based approach to office investment, but are becoming increasingly selective, focusing on well-located, high-quality properties that meet ESG standards and can support long-term rental growth. Meanwhile, older or lower-quality buildings continue to face pressure on occupancy and asset values.

This shift shows that offices have returned to investors’ agendas for many institutions, but the current focus is on asset quality rather than market scale alone.

Asia Pacific Office Investment Recovery Gains Momentum, Supported by Cross-Border Capital 

The recovery trend is particularly evident in Asia Pacific. According to Nicholas Wilson, Senior Director, Strategic Research & Advisory, Savills APAC Capital Markets, sentiment toward the office sector has improved more quickly than expected in recent quarters in 2026, with stronger investor engagement and trading activity emerging across most core markets in the region.

In Q1/2026, office investment in the region increased by 26% year-on-year, while total office transaction activity over the 12 months to the end of Q1 rose by 21%. At the same time, the number of transactions valued at over US$200 million increased by 58%, indicating that capital is returning at scale to the market.

A key driver has been the recovery of cross-border capital. International investors now account for around 40% of total real estate transactions in APAC, significantly higher than the long-term average of 30%.

Several major office transactions have supported market momentum, including Brookfield Asset Management’s acquisition of Dentsu’s headquarters in Tokyo for around JPY300 billion, equivalent to US$1.9 billion, and Hongkong Land’s acquisition of Asia Square Tower 1 in Singapore. These deals helped Singapore record its most active first quarter in nearly two decades, while also supporting investment activity in Hong Kong, South Korea and Taiwan.

Investors are showing particular interest in markets with strong leasing fundamentals, controlled future supply and positive rental growth prospects. These factors continue to support markets such as Tokyo, Seoul and Singapore in attracting regional capital.

The Flight to Quality Becomes More Evident in Viet Nam 

In Ha Noi, new office supply is mainly coming from Grade A office projects in the western area and the inner-city districts. The market has remained stable, with occupancy reaching 86%, while rents continued to increase. With more high-quality supply expected in the coming years, landlords are competing more actively through building quality, ESG standards and tenant experience.

Ho Chi Minh City recorded stable office supply in the first half of 2026, maintaining an occupancy rate of 88%. Leasing demand was concentrated in new, high-quality buildings with green certifications. Most new transactions took place in premium office projects, reflecting increasingly selective tenant preferences and a growing emphasis on quality.

Developments in Viet Nam’s two largest office markets show that the shift toward high-quality real estate assets is becoming increasingly clear. Similar to leading office markets in the region, both occupiers and investors are prioritising assets with higher-quality space, sustainable operations and the ability to preserve long-term value.

As global capital returns to the office sector in a more selective manner, Grade A buildings with strong locations, clear ESG standards and stable rental growth prospects are expected to remain the key beneficiaries in Viet Nam.

William Gramond, Director, Commercial Leasing, Savills Ha Noi, commented:

In this context, landlords need to be more flexible and proactive with commercial terms to maintain occupancy. In particular, the quality of the workplace is no longer limited to technical specifications but is increasingly linked to amenities and sustainability. These are key factors for businesses in attracting talent.

He added:
“Green certifications such as LEED and WELL have become an increasingly important requirement for multinational corporations when considering office space, alongside commercial terms.”

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