Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
The uplift in volume represents Apac’s continued appeal to global financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Despite recurring uncertainties, investor interest remains high, with cross-border movements increasing and markets like living and information centres remaining to exceed. There are clear indicators that long-term fundamentals continue to be attractive,” he includes.
On the other side, the commercial sector saw lower investments in both q-o-q and y-o-y terms, which Knight Frank credits to continued uncertainty over United States trade guideline.
Singapore also stuck out last quarter, with foreign funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million recorded in 2Q2024. The rise originated from IOI Group’s procurement 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 industrial buildings from Mapletree Industrial Trust at US$ 420 million.
Realty financial investments in Asia Pacific (Apac) got a boost in 2Q2025, data put together by Knight Frank reveals. The region reported US$ 42 billion ($53 billion) in investment volume last quarter, logging 7.4% growth q-o-q and 10.1% progress y-o-y.
Consequently, while typical assets remained to control activity last quarter, alternative asset courses such as the living field and data centres observed an uptick. Investment in the living industry virtually increased y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre investment volume completed US$ 2.4 billion, up 40.2% q-o-q.
Cross-border investment activity accounted for US$ 12.1 billion of total investment quantity, reflecting a 50.1% y-o-y rise. The bulk of cross-border resources flows was mainly assisted by United States financiers, claims Knight Frank.
Otto Place Hoi Hup Realty and Sunway
Australia was the biggest recipient of abroad inflows, at US$ 3.8 billion. These consist of two significant living market offers: The sale of 65 senior living facilities by Brookfield Asset Monitoring to Australia’s The Living Business for US$ 2.5 billion; and Greystar’s acquisition of a pupil housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living sector, Australia nabbed investments for prime workplace assets in main areas.
Looking in advance, while extended geopolitical and financial instability could dampen view, Knight Frank watches that enhancing prospects for United States trade agreements and decreasing credit prices anticipated in the 2nd part of this year could boost a lot more financial investments throughout the area.
Christine Li, Knight Frank’s head of study for Apac, marks that capitalists in Apac property are revealing a better feeling of discernment around asset type and high quality. “We see clear indications that global capital is gravitating towards places and sectors offering revenue security and reliable development leads, even as trade pressures and the possibility of shifting monetary policy add an additional layer of complexity,” she describes.
