Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
The boost in volume represents Apac’s continued appeal to global funding, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Regardless of recurring uncertainties, financier interest remains high, with cross-border flows raising and markets like living and data centres remaining to surpass. There are clear indicators that long-term basics stay appealing,” he includes.
On the other hand, the commercial sector saw lower investments in both q-o-q and y-o-y terms, which Knight Frank credits to continued uncertainty over United States trade guideline.
Looking in advance, while long term geopolitical and financial instability can dampen view, Knight Frank views that increasing prospects for United States trade agreements and decreasing credit prices expected in the 2nd half of this year can promote extra financial investments around the region.
Cross-border investment activity accounted for US$ 12.1 billion of general investment volume, showing a 50.1% y-o-y surge. The bulk of cross-border capital flows was mainly upheld by US financiers, states Knight Frank.
Realty investments in Asia Pacific (Apac) got a boost in 2Q2025, data assembled by Knight Frank shows. The area documented US$ 42 billion ($53 billion) in financial investment quantity last quarter, logging 7.4% development q-o-q and 10.1% progress y-o-y.
Australia was the largest receiver of overseas inflows, at US$ 3.8 billion. These include two substantial living sector offers: The sale of 65 senior living facilities by Brookfield Asset Monitoring to Australia’s The Living Company for US$ 2.5 billion; and Greystar’s acquisition of a pupil real estate profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living market, Australia netted investments for prime office assets in main places.
Christine Li, Knight Frank’s head of study for Apac, indicates that capitalists in Apac property are showing a better feeling of discernment around asset kind and top quality. “We see clear indicators that global capital is being attracted in the direction of locations and markets providing income security and dependable development prospects, even as trade uneasiness and the possibility of moving monetary policy include an extra layer of complexity,” she explains.
Singapore likewise stood out last quarter, with international resources inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million videotaped in 2Q2024. The surge 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 acquisition of three industrial properties from Mapletree Industrial Trust at US$ 420 million.
Consequently, whilst conventional assets remained to control activity last quarter, alternative property courses such as the living industry and data facilities saw an uptick. Investment in the living sector nearly increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre financial investment quantity amounted to US$ 2.4 billion, up 40.2% q-o-q.
