Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
The boost in volume indicates Apac’s ongoing demand to worldwide financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Regardless of recurring uncertainties, investor interest continues to be high, with cross-border flows increasing and sectors like living and data centres continuing to exceed. There are clear indicators that long-term principles stay attractive,” he includes.
Australia was the largest beneficiary of overseas inflows, at US$ 3.8 billion. These include two substantial living sector deals: The sale of 65 senior living facilities by Brookfield Asset Management to Australia’s The Living Company 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 sector, Australia nabbed financial investments for prime office space assets in main areas.
On the other side, the commercial industry viewed lower investments in both q-o-q and y-o-y terms, that Knight Frank credits to continued unpredictability over United States trade policy.
Singapore additionally stood out last quarter, with international funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million recorded 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, together with Brookfield Asset Management’s purchase of 3 industrial buildings from Mapletree Industrial Trust at US$ 420 million.
Christine Li, Knight Frank’s head of research for Apac, marks that financiers in Apac real estate are revealing a better feeling of discernment around asset type and top quality. “We see clear signs that international capital is being attracted in the direction of areas and fields offering revenue stability and reliable development prospects, even as trade uneasiness and the possibility of moving monetary plan add an extra layer of intricacy,” she describes.
Realty investments in Asia Pacific (Apac) got an increase in 2Q2025, data put together by Knight Frank reveals. The region reported US$ 42 billion ($53 billion) in investment quantity past quarter, logging 7.4% development q-o-q and 10.1% growth y-o-y.
Looking ahead, whilst long term geopolitical and financial instability might dampen view, Knight Frank watches that increasing prospects for United States trade agreements and decreasing loaning costs anticipated in the second part of this year might promote a lot more investments across the region.
Because of this, while conventional properties continued to control task last quarter, alternate possession classes such as the living market and data centers saw an uptick. Investment in the living field virtually increased y-o-y to hit US$ 4.9 billion in 2Q2025, while information centre financial investment volume completed US$ 2.4 billion, up 40.2% q-o-q.
Cross-border investment activity accounted for US$ 12.1 billion of total financial investment quantity, reflecting a 50.1% y-o-y rise. The bulk of cross-border capital flows was mainly upheld by US clients, claims Knight Frank.
