Asia Pacific remains a vital hub for global capital, with Singapore, Hong Kong, Japan, and China ranking among the top ten sources of capital worldwide, according to the latest Colliers report. The region has seen robust investment activity in recent years, underscoring its diverse appeal and the substantial flow of capital into key real estate sectors.
Colliers' Global Capital Flows Report reveals that Asia Pacific has attracted significant investment over the past 24 months, reflecting its attractiveness to local and international investors. In 2024, investment volumes in the region reached 72% of the five-year average, with six major sectors seeing US$183 billion in investment. The office sector led the charge with US$57 billion in investment, followed closely by the industrial sector, which secured US$55 billion. Other sectors, such as retail (US$37 billion), multifamily (US$17 billion), and hospitality (US$15 billion), also saw substantial inflows.
Asia Pacific's diverse real estate market drives global capital flows, with office, industrial, and retail sectors at the forefront of cross-border investment activity. The region is increasingly seen as a strategic location for capital deployment due to its growing influence and key positioning in the global investment landscape.
Additionally, due to its dominance in real estate investment, Asia Pacific remains a leader in land and development capital flows. Seven of the top ten destinations for land and development sites globally are in the region, including China, Singapore, Australia, India, Malaysia, Vietnam, and Japan. This trend highlights the appeal of Asia Pacific as a hub for growth, with investors looking to capitalise on land development and infrastructure opportunities.
Regarding standing assets, Asia Pacific continues to be a major player, with countries like Japan, Australia, and China ranking among the top ten destinations for global investment. Singapore, Hong Kong, Japan, and China are also prominent sources of cross-border capital.
In the past 24 months, the industrial and logistics sector has been the most active across all regions, with Asia Pacific not far behind the office sector in terms of investment. Retail remains a key regional player, maintaining a strong market share.
Looking ahead to 2025, experts predict that global yield spreads could converge across regions, which would facilitate more efficient capital deployment, both domestically and across borders. Asia Pacific and Europe, the Middle East, and Africa (EMEA) are expected to be the main beneficiaries of an increase in global cross-border activity, particularly given the strength of the US dollar.
