Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Real estate financial investments in Asia Pacific (Apac) got a boost in 2Q2025, data put together by Knight Frank reveals. The region reported US$ 42 billion ($53 billion) in investment volume last quarter, logging 7.4% development q-o-q and 10.1% buildup y-o-y.
Consequently, whilst traditional possessions remained to dominate activity last quarter, different asset courses such as the living market and data facilities observed an uptick. Investment in the living sector nearly increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre financial investment quantity totalled US$ 2.4 billion, up 40.2% q-o-q.
Christine Li, Knight Frank’s head of research for Apac, marks that investors in Apac realty are showing a higher sense of discernment around asset kind and top quality. “We see clear indications that global capital is being attracted towards areas and markets providing revenue security and reliable growth prospects, even as trade tensions and the possibility of changing monetary plan add an additional layer of complexity,” she describes.
Looking in advance, whilst long term geopolitical and financial instability could dampen belief, Knight Frank views that increasing leads for United States trade agreements and decreasing loaning prices anticipated in the second part of this year might stimulate extra financial investments around the region.
Cross-border investment activity made up US$ 12.1 billion of general financial investment quantity, mirroring a 50.1% y-o-y surge. The bulk of cross-border capital flows was mainly sustained by United States capitalists, claims Knight Frank.
Australia was the biggest beneficiary of abroad inflows, at US$ 3.8 billion. These consist of 2 substantial living field offers: The sale of 65 senior living facilities by Brookfield Asset Monitoring to Australia’s The Living Company for US$ 2.5 billion; and Greystar’s purchase of a trainee real estate portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living field, Australia netted investments for prime workplace assets in central locations.
The uplift in volume represents Apac’s continuous demand to worldwide financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Regardless of continuous uncertainties, financier interest stays high, with cross-border movements increasing and markets such as living and information centres remaining to surpass. There are clear indicators that long-term principles stay appealing,” he adds.
On the other hand, the industrial sector viewed lower investments in both q-o-q and y-o-y terms, which Knight Frank credits to ongoing uncertainty over US trade policy.
Singapore likewise stuck out last quarter, with foreign capital 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% 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 properties from Mapletree Industrial Trust at US$ 420 million.
