Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Australia was the largest receiver of overseas inflows, at US$ 3.8 billion. These consist of 2 significant living sector deals: The sale of 65 senior living facilities by Brookfield Asset Monitoring to Australia’s The Living Firm 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. Past the living field, Australia nabbed financial investments for prime office space assets in main locations.
Singapore likewise stood out last quarter, with international resources inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million documented in 2Q2024. The rise originated 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 acquisition of three industrial properties from Mapletree Industrial Trust at US$ 420 million.
Looking in advance, whilst long term geopolitical and economic instability might dampen belief, Knight Frank watches that enhancing prospects for US trade agreements and declining credit costs anticipated in the second half of this year can stimulate much more investments around the region.
Because of this, while conventional properties continued to dominate task last quarter, alternate property courses such as the living market and information facilities saw an uptick. Financial investment in the living sector almost increased y-o-y to hit US$ 4.9 billion in 2Q2025, while data centre financial investment quantity completed US$ 2.4 billion, up 40.2% q-o-q.
The boost in quantity signifies Apac’s ongoing demand to worldwide financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Despite continuous unpredictabilities, financier interest stays high, with cross-border runs raising and sectors such as living and data centres continuing to surpass. There are clear indicators that long-term basics continue to be eye-catching,” he adds.
Real estate investments in Asia Pacific (Apac) got a boost in 2Q2025, data assembled by Knight Frank reveals. The area documented US$ 42 billion ($53 billion) in investment volume previous quarter, logging 7.4% development q-o-q and 10.1% growth y-o-y.
Cross-border investment activity represented US$ 12.1 billion of overall investment quantity, reflecting a 50.1% y-o-y surge. The bulk of cross-border resources flows was mostly upheld by United States clients, claims Knight Frank.
Christine Li, Knight Frank’s head of study for Apac, marks that investors in Apac real estate are revealing a better sense of discernment around asset type and quality. “We see clear indications that international capital is being attracted in the direction of locations and markets supplying revenue stability and reliable development prospects, even as trade tensions and the prospect of changing monetary policy add an extra layer of complexity,” she discusses.
On the flip side, the commercial market saw reduced investments in both q-o-q and y-o-y terms, which Knight Frank attributes to continued unpredictability over US trade guideline.
