Retailers in the Asia Pacific region are taking a more cautious approach to expansion, prioritizing prime locations over new store openings, according to CBRE. Demand for prime retail space remained strong in the first half of 2026, with retailers seeking locations that offer greater visibility and opportunities to drive sales.
The property consultancy noted that retailers are increasingly focused on relocating or upgrading existing stores rather than opening multiple new outlets. This approach is driven by the desire for prime locations that can support both physical and online sales channels.
The Middle East conflict has had a mild impact on retailers’ real estate planning, with most retail groups continuing to assess leasing plans. Tokyo’s Ginza is expected to see further rental growth, driven by retailers’ strong preference for the district and limited availability. Additionally, the strong preference for Ginza is also driving retailers to explore alternative locations such as Omotesando, Harajuku, and Shibuya, which offer similar brand exposure opportunities.
In Hong Kong SAR, the outlook is more mixed, with strong retail sales growth in the first half expected to give way to a milder rental recovery in the second half. This is due to the fact that much of the sales growth is being generated online, and brick-and-mortar retailers remain cautious due to high operating costs.
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Taipei’s lease-price increases are projected to stay modest, chiefly within zones that cater to tourists. Although the economy has performed robustly of late, residents tend to shop abroad, a pattern that has not resulted in matching growth in domestic retail turnover.
Australia’s regional retail centres are seeing continued rental support from population growth and limited new supply. However, performance varies by market, with Brisbane expected to see a brighter economic outlook and Perth and Melbourne experiencing rising unemployment that is weighing on rental growth.
Across India, prime shopping districts such as Mumbai and Delhi are seeing lease rates reach record levels, and in Vietnam, the central business districts of Hanoi and Ho Chi Minh City are similarly raised. Scarcity of available premises is still lifting prices, even though the rate of increase should ease. Additional rent increases are likely to hinge on the delivery of fresh, high-grade inventory, which CBRE views as key for future expansion.
Demand for prime retail space remained strong across the region in H1 2026, with retailers continuing to seek prime locations despite a more cautious approach to expansion. Tokyo’s Ginza is expected to see further rental growth, with retailers’ strong preference for the district for brand exposure supporting demand despite rents already being at historical highs, according to CBRE. This trend is expected to continue, with prime locations offering greater visibility and opportunities to drive sales across both physical stores and online channels.
