Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Christine Li, Knight Frank’s head of research for Apac, indicates that capitalists in Apac property are revealing a higher feeling of discernment around asset kind and quality. “We see clear signs that global capital is being attracted towards areas and fields supplying revenue stability and trusted growth prospects, even as trade uneasiness and the prospect of moving monetary policy add an added layer of intricacy,” she discusses.
Because of this, while standard assets continued to control task last quarter, different property classes such as the living industry and data centers found an uptick. Investment in the living market nearly doubled y-o-y to hit US$ 4.9 billion in 2Q2025, while information centre financial investment volume completed US$ 2.4 billion, up 40.2% q-o-q.
Australia was the biggest receiver of overseas inflows, at US$ 3.8 billion. These include two considerable living sector deals: The sale of 65 senior living facilities by Brookfield Asset Administration to Australia’s The Living Business for US$ 2.5 billion; and Greystar’s procurement of a trainee real estate portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia nabbed investments for prime office assets in central locations.
The uplift in quantity signifies Apac’s continued appeal to international capital, observes Craig Shute, CEO of Apac at Knight Frank. “Despite ongoing unpredictabilities, financier interest continues to be high, with cross-border movements raising and markets like living and data centres continuing to surpass. There are clear indications that long-term fundamentals continue to be eye-catching,” he includes.
Real estate investments in Asia Pacific (Apac) got a boost in 2Q2025, data compiled by Knight Frank shows. The area reported US$ 42 billion ($53 billion) in investment quantity last quarter, logging 7.4% development q-o-q and 10.1% growth y-o-y.
Looking ahead, whilst extended geopolitical and economic instability might dampen sentiment, Knight Frank checks out that enhancing prospects for United States trade agreements and declining loaning prices expected in the 2nd half of this year could boost much more financial investments around the region.
Cross-border investment activity accounted for US$ 12.1 billion of overall investment quantity, mirroring a 50.1% y-o-y surge. The bulk of cross-border capital flows was largely upheld by United States investors, claims Knight Frank.
On the flip side, the industrial market saw lower investments in both q-o-q and y-o-y terms, that Knight Frank credits to ongoing uncertainty over US trade policy.
Singapore additionally stuck out last quarter, with foreign funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million recorded in 2Q2024. The rise came from IOI Group’s purchase of a 50.1% stake in mixed-use development South Beach from joint-venture partner City Developments for US$ 650 million, together with Brookfield Asset Management’s purchase of three commercial properties from Mapletree Industrial Trust at US$ 420 million.
