Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Realty investments in Asia Pacific (Apac) got a boost in 2Q2025, data put together by Knight Frank reveals. The region reported US$ 42 billion ($53 billion) in investment volume last quarter, logging 7.4% development q-o-q and 10.1% buildup y-o-y.
Australia was the largest recipient of overseas inflows, at US$ 3.8 billion. These consist of 2 considerable living industry 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 procurement of a student real estate profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living market, Australia nabbed financial investments for prime office space assets in central places.
Hillock Green showflat location
Christine Li, Knight Frank’s head of research for Apac, marks that financiers in Apac property are revealing a better sense of discernment around asset kind and quality. “We see clear signs that international capital is moving towards areas and markets providing income stability and reliable growth prospects, even as trade tensions and the possibility of changing monetary plan include an extra layer of complexity,” she explains.
On the flip side, the commercial field saw reduced investments in both q-o-q and y-o-y terms, which Knight Frank attributes to ongoing unpredictability over US trade policy.
Looking ahead, whilst prolonged geopolitical and economic instability could dampen belief, Knight Frank views that increasing prospects for United States trade agreements and declining borrowing expenses anticipated in the 2nd part of this year can stimulate extra financial investments across the region.
Singapore likewise stuck out last quarter, with foreign resources inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million documented in 2Q2024. The surge came from IOI Group’s procurement of a 50.1% risk in mixed-use development South Beach from joint-venture partner City Developments for US$ 650 million, along with Brookfield Asset Management’s purchase of three commercial buildings from Mapletree Industrial Trust at US$ 420 million.
Because of this, while standard assets continued to dominate activity last quarter, alternate property courses such as the living industry and data facilities observed an uptick. Financial investment in the living sector nearly increased y-o-y to hit US$ 4.9 billion in 2Q2025, while data centre investment volume totalled US$ 2.4 billion, up 40.2% q-o-q.
Cross-border investment activity represented US$ 12.1 billion of overall investment quantity, mirroring a 50.1% y-o-y rise. The bulk of cross-border funding flows was largely supported by US capitalists, claims Knight Frank.
The boost in volume represents Apac’s ongoing demand to worldwide financing, observes Craig Shute, CEO of Apac at Knight Frank. “In spite of recurring unpredictabilities, capitalist interest remains high, with cross-border movements raising and markets such as living and information centres continuing to surpass. There are clear signs that long-term fundamentals continue to be attractive,” he includes.
