Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore also stuck out last quarter, with international capital inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million documented 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 industrial buildings from Mapletree Industrial Trust at US$ 420 million.
Christine Li, Knight Frank’s head of study for Apac, marks that financiers in Apac realty are showing a better sense of discernment around asset kind and top quality. “We see clear indications that global capital is being attracted towards places and markets supplying income stability and reliable development prospects, even as trade uneasiness and the prospect of shifting monetary plan include an added layer of intricacy,” she discusses.
Looking ahead, whilst long term geopolitical and economic instability might dampen view, Knight Frank checks out that enhancing prospects for United States trade agreements and decreasing credit prices anticipated in the second part of this year could stimulate much more financial investments throughout the region.
Consequently, while traditional assets continued to dominate task last quarter, alternative possession classes such as the living sector and data centres saw an uptick. Investment in the living sector nearly doubled 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.
On the other side, the commercial industry viewed reduced investments in both q-o-q and y-o-y terms, which Knight Frank attributes to continued uncertainty over US trade protocol.
Property investments in Asia Pacific (Apac) got an increase in 2Q2025, data assembled by Knight Frank reveals. The area recorded US$ 42 billion ($53 billion) in financial investment quantity previous quarter, logging 7.4% growth q-o-q and 10.1% buildup y-o-y.
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Cross-border investment activity made up US$ 12.1 billion of general financial investment quantity, mirroring a 50.1% y-o-y rise. The bulk of cross-border funding flows was mostly supported by United States financiers, states Knight Frank.
Australia was the biggest beneficiary of overseas inflows, at US$ 3.8 billion. These include 2 substantial living field deals: The sale of 65 senior living facilities by Brookfield Asset Management to Australia’s The Living Firm for US$ 2.5 billion; and Greystar’s purchase of a trainee housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living sector, Australia netted financial investments for prime office space assets in main locations.
The boost in volume represents Apac’s continued appeal to international financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “In spite of continuous uncertainties, financier interest remains high, with cross-border movements increasing and markets like living and information centres remaining to surpass. There are clear indicators that long-term principles continue to be attractive,” he adds.
