APAC retail investment jumps $7.2b as rents slide

F&B and fashion drive the leasing activity across the region.

The Asia-Pacific (APAC) retail investment volumes reached $7.2b in the fourth quarter of 2025, increasing by 80% year on year (YoY) amidst mixed conditions across the region, according to a JLL report.

Australian unlisted property funds and private companies led investment activity. Japanese J-REITs returned to acquisitions through selective deals. Singapore recorded higher transaction activity, including the sale of Clementi Mall.

Retail leasing demand across APAC centred on food and beverage (F&B) and fashion. Experiential retail and high-footfall locations recorded strong demand. Personal care tenants contributed to demand but maintained selective expansion strategies.

The APAC Retail Rental Index fell for a fourth consecutive quarter, driven by weakness in Greater China. Most other markets recorded flat or modest rental growth.

India’s prime retail submarkets recorded the strongest rental growth, whilst Tokyo’s high streets also posted gains, supported by higher inbound tourism.

Landlords in weaker markets offered rental concessions and flexible lease terms to maintain occupancy. Landlords in stronger markets adjusted tenant mix through asset management strategies.

APAC retail fundamentals showed net absorption of 1.678 million square metres in 2025 against completions of 2.055 million square metres.

Vacancy stood at about 8.5%, whilst rents fell 2.5% YoY, JLL added.

Tourism recovery supported commercial hubs across the region. Consumer caution continues to affect discretionary spending in some markets.

Leasing momentum is expected to remain stable in early 2026. F&B and fashion are expected to continue leading demand, whilst lifestyle and service-led retail concepts are gaining ground.

Direct-to-consumer brands are expanding physical store networks to strengthen customer engagement, according to the JLL report.