Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Australia was the largest beneficiary of overseas inflows, at US$ 3.8 billion. These consist of 2 significant living field 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 purchase of a pupil housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia netted financial investments for prime workplace assets in central areas.
Looking in advance, while long term geopolitical and economic instability might dampen belief, Knight Frank watches that enhancing leads for United States trade agreements and decreasing credit expenses anticipated in the second part of this year could promote more investments around the region.
Cross-border investment activity accounted for US$ 12.1 billion of total investment volume, reflecting a 50.1% y-o-y surge. The bulk of cross-border funding flows was mainly assisted by United States clients, states Knight Frank.
Christine Li, Knight Frank’s head of study for Apac, marks that capitalists in Apac real estate are revealing a greater feeling of discernment around asset type and quality. “We see clear indicators that global capital is being attracted towards places and sectors offering revenue stability and dependable development leads, even as trade tensions and the prospect of changing monetary plan add an added layer of complexity,” she discusses.
Property investments in Asia Pacific (Apac) got an increase in 2Q2025, data assembled by Knight Frank reveals. The region documented US$ 42 billion ($53 billion) in financial investment quantity past quarter, logging 7.4% development q-o-q and 10.1% buildup y-o-y.
As a result, while typical properties continued to dominate activity last quarter, alternate possession courses such as the living field and data centres observed an uptick. Financial investment in the living market almost increased y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre investment volume totalled US$ 2.4 billion, up 40.2% q-o-q.
The uplift in volume represents Apac’s continuous appeal to worldwide funding, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “In spite of continuous unpredictabilities, investor interest continues to be high, with cross-border movements increasing and industries such as living and information centres remaining to exceed. There are clear indicators that long-term principles remain attractive,” he adds.
On the other hand, the commercial sector saw lower investments in both q-o-q and y-o-y terms, that Knight Frank attributes to continued uncertainty over United States trade protocol.
Singapore additionally stuck 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% 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 commercial properties from Mapletree Industrial Trust at US$ 420 million.
