Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore also stood out last quarter, with international resources inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million recorded in 2Q2024. The rise originated 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 acquisition of three industrial buildings from Mapletree Industrial Trust at US$ 420 million.
Realty investments in Asia Pacific (Apac) got an increase in 2Q2025, data compiled by Knight Frank reveals. The region documented US$ 42 billion ($53 billion) in financial investment volume previous quarter, logging 7.4% development q-o-q and 10.1% progress y-o-y.
Cross-border investment activity accounted for US$ 12.1 billion of total financial investment quantity, showing a 50.1% y-o-y rise. The bulk of cross-border capital flows was mostly sustained by US capitalists, states Knight Frank.
The uplift in volume signifies Apac’s ongoing appeal to global capital, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Despite recurring unpredictabilities, investor interest stays high, with cross-border flows raising and industries like living and information centres remaining to surpass. There are clear signs that long-term fundamentals continue to be eye-catching,” he adds.
As a result, while standard assets remained to control activity last quarter, alternative asset classes such as the living sector and data facilities found an uptick. Investment in the living sector nearly doubled y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre investment quantity amounted to US$ 2.4 billion, up 40.2% q-o-q.
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Australia was the largest recipient of overseas inflows, at US$ 3.8 billion. These include 2 substantial living industry offers: 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 acquisition of a student real estate portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living market, Australia netted investments for prime office space assets in main places.
On the flip side, the industrial industry viewed reduced investments in both q-o-q and y-o-y terms, that Knight Frank attributes to continued unpredictability over US trade policy.
Looking ahead, whilst prolonged geopolitical and economic instability can dampen view, Knight Frank sees that increasing leads for United States trade agreements and declining borrowing expenses expected in the 2nd half of this year could stimulate much more investments across the region.
Christine Li, Knight Frank’s head of research study for Apac, notes that investors in Apac real estate are revealing a greater feeling of discernment around asset type and quality. “We see clear signs that worldwide capital is moving in the direction of places and markets offering earnings stability and dependable growth leads, even as trade tensions and the prospect of moving monetary plan add an extra layer of intricacy,” she describes.
