Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore additionally stuck out last quarter, with international funding inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million documented 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, in addition to Brookfield Asset Management’s purchase of three commercial buildings from Mapletree Industrial Trust at US$ 420 million.
Property financial investments in Asia Pacific (Apac) got a boost in 2Q2025, data put together by Knight Frank shows. The region recorded US$ 42 billion ($53 billion) in investment volume previous quarter, logging 7.4% growth q-o-q and 10.1% progress y-o-y.
The boost in quantity signifies Apac’s ongoing appeal to worldwide financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Regardless of continuous uncertainties, investor interest stays high, with cross-border runs raising and industries such as living and information centres continuing to surpass. There are clear indications that long-term fundamentals stay appealing,” he includes.
Australia was the largest receiver of overseas inflows, at US$ 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 Firm for US$ 2.5 billion; and Greystar’s acquisition of a pupil real estate portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living industry, Australia nabbed investments for prime office space assets in main locations.
Because of this, while conventional assets continued to dominate task last quarter, alternative property classes such as the living sector and information centres found an uptick. Investment in the living industry virtually increased y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre financial investment volume totalled US$ 2.4 billion, up 40.2% q-o-q.
On the other side, the industrial sector saw reduced investments in both q-o-q and y-o-y terms, that Knight Frank credits to ongoing uncertainty over US trade guideline.
Christine Li, Knight Frank’s head of study for Apac, indicates that capitalists in Apac real estate are showing a higher feeling of discernment around asset type and high quality. “We see clear signs that international capital is gravitating towards places and fields supplying earnings security and reliable development leads, even as trade tensions and the possibility of shifting monetary plan add an extra layer of complexity,” she explains.
Looking ahead, whilst extended geopolitical and financial instability could dampen sentiment, Knight Frank watches that enhancing leads for United States trade agreements and decreasing borrowing prices anticipated in the 2nd half of this year can boost a lot more investments throughout the area.
Cross-border investment activity represented US$ 12.1 billion of overall investment quantity, mirroring a 50.1% y-o-y surge. The bulk of cross-border resources flows was mainly upheld by US capitalists, claims Knight Frank.
