According to Knight Frank’s Asia-Pacific Capital Markets Insights Q2 2025, real estate investment in the region hit US$42 billion, up 10.1% YoY and 7.4% QoQ, as global investors recalibrated strategies amid shifting market dynamics.
Cross-border investment reached US$12.1 billion, the highest since Q3 2022 (excluding Q4 2024’s spike), with US investors leading the charge into safe-haven markets like Australia, Japan, and Singapore.
“The uplift in investment volumes this quarter demonstrates the region's continued appeal to global capital,” said Craig Shute, CEO, Asia-Pacific, Knight Frank.
Living Sector: Investment nearly doubled YoY to US$4.9B, led by major Australian deals—Brookfield’s sale of 65 senior living facilities (US$2.5B) and Greystar’s student housing acquisition (US$1.0B).
Data Centres: Investment rose 40.2% QoQ to US$2.4B, with Iron Mountain gaining full control of six Indian data centres and GLP launching a US$362M fund in Greater Beijing.
Country Breakdown
Australia: Captured US$3.8B, nearly a third of cross-border volume. Key deals include Daibiru’s US$375M acquisition of 135 King Street and Odakyu’s stake in Salesforce Tower.
Japan: Attracted US$2.4B despite a 14.8% YoY dip in transactions. Focus remained on living and industrial assets, including Warburg Pincus’s multifamily portfolio buy.
Singapore: Foreign inflows surged to US$2.3B from US$342M last year, driven by IOI Group’s US$650M South Beach stake and Brookfield’s US$420M industrial buy.
While geopolitical tensions and monetary shifts pose risks, easing rates and improving US trade prospects could unlock further investment momentum in H2 2025.
