Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Realty investments in Asia Pacific (Apac) got a boost in 2Q2025, data compiled by Knight Frank reveals. The area recorded US$ 42 billion ($53 billion) in investment quantity last quarter, logging 7.4% growth q-o-q and 10.1% growth y-o-y.
On the other hand, the commercial market saw lower investments in both q-o-q and y-o-y terms, that Knight Frank credits to continued uncertainty over United States trade policy.
Christine Li, Knight Frank’s head of research study for Apac, indicates that financiers in Apac real estate are showing a higher sense of discernment around asset kind and high quality. “We see clear indicators that worldwide capital is moving in the direction of places and fields offering income stability and efficient growth prospects, even as trade uneasiness and the prospect of shifting monetary plan include an extra layer of complexity,” she describes.
Cross-border investment activity accounted for US$ 12.1 billion of general investment quantity, mirroring a 50.1% y-o-y rise. The bulk of cross-border resources flows was largely supported by US capitalists, claims Knight Frank.
Singapore likewise stuck out last quarter, with international funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million videotaped 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 purchase of 3 industrial buildings from Mapletree Industrial Trust at US$ 420 million.
As a result, whilst typical properties remained to control task last quarter, alternate asset classes such as the living market and data centres saw an uptick. Financial investment in the living industry virtually increased y-o-y to hit US$ 4.9 billion in 2Q2025, while information centre investment quantity amounted to US$ 2.4 billion, up 40.2% q-o-q.
The uplift in quantity signifies Apac’s continuous demand to global financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Despite ongoing unpredictabilities, investor interest continues to be high, with cross-border runs increasing and industries such as living and data centres remaining to exceed. There are clear indicators that long-term fundamentals continue to be attractive,” he includes.
Looking ahead, while prolonged geopolitical and financial instability could dampen belief, Knight Frank sees that enhancing prospects for United States trade agreements and declining credit costs anticipated in the second half of this year might promote more investments around the region.
Australia was the biggest receiver of overseas inflows, at US$ 3.8 billion. These consist of two considerable living industry offers: 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 housing profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia nabbed financial investments for prime workplace assets in main areas.
