Asia Pacific retail and hotel markets show strategic shifts

Retailers in the Asia Pacific region are prioritizing prime locations and upgrading existing stores over aggressive new expansions, according to CBRE. While demand for high-visibility spaces remains strong, companies are adopting a more cautious approach to opening multiple new outlets. In Japan, Tokyo’s Ginza district continues to see high demand and rental growth, pushing interest toward Omotesando, Harajuku, and Shibuya. In Hong Kong, a milder rental recovery is expected due to high operating costs and a shift toward online sales, while Taipei sees rental growth concentrated in tourist areas.

In the hospitality sector, Asia Pacific hotel transactions reached USD 17.0 billion in 2025, a 51.9% increase from the previous year. Data from Global Asset Solutions indicates that investors are favoring the acquisition of existing assets for refurbishment or conversion rather than new developments. This shift is driven by expensive financing, high labor and construction costs, and supply chain constraints. While luxury assets saw a decline in transaction volume, they maintained strong pricing power, with average luxury pricing increasing by 24% to approximately USD 585,000 per key.