Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore also stood out last quarter, with foreign funding inflows to the city-state hitting US$ 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, in addition to Brookfield Asset Management’s purchase of 3 commercial properties from Mapletree Industrial Trust at US$ 420 million.
Property investments in Asia Pacific (Apac) got an increase in 2Q2025, information compiled by Knight Frank reveals. The region documented US$ 42 billion ($53 billion) in financial investment quantity last quarter, logging 7.4% development q-o-q and 10.1% progress y-o-y.
Consequently, while standard properties remained to dominate activity last quarter, different property courses such as the living field and data centers observed an uptick. Investment in the living sector nearly increased y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre financial investment quantity totalled US$ 2.4 billion, up 40.2% q-o-q.
Christine Li, Knight Frank’s head of study for Apac, marks that financiers in Apac real estate are showing a better sense of discernment around asset type and quality. “We see clear indications that worldwide capital is being attracted in the direction of places and fields offering revenue security and reliable growth leads, even as trade pressures and the prospect of changing monetary plan add an added layer of intricacy,” she discusses.
The boost in volume represents Apac’s continuous demand to global capital, observes Craig Shute, CEO of Apac at Knight Frank. “In spite of continuous uncertainties, financier interest remains high, with cross-border runs increasing and markets such as living and information centres continuing to exceed. There are clear indications that long-term basics stay attractive,” he includes.
On the other side, the commercial industry saw reduced investments in both q-o-q and y-o-y terms, which Knight Frank credits to ongoing uncertainty over United States trade guideline.
Looking in advance, while long term geopolitical and economic instability might dampen sentiment, Knight Frank views that increasing prospects for United States trade agreements and decreasing loaning expenses expected in the second part of this year can stimulate much more financial investments across the region.
Cross-border investment activity represented US$ 12.1 billion of total investment volume, mirroring a 50.1% y-o-y surge. The bulk of cross-border resources flows was mostly upheld by US capitalists, states Knight Frank.
Australia was the largest recipient of overseas inflows, at US$ 3.8 billion. These include 2 considerable living industry deals: 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 student real estate portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia netted investments for prime workplace assets in main locations.
