Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore also stood out last quarter, with foreign resources inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million recorded in 2Q2024. The rise came from IOI Group’s purchase of a 50.1% stake 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 commercial buildings from Mapletree Industrial Trust at US$ 420 million.
Christine Li, Knight Frank’s head of study for Apac, marks that investors in Apac property are revealing a better sense of discernment around asset type and quality. “We see clear indicators that worldwide capital is being attracted in the direction of areas and fields providing income security and trusted growth prospects, even as trade tensions and the possibility of changing monetary plan include an added layer of intricacy,” she discusses.
Looking in advance, while prolonged geopolitical and financial instability could dampen belief, Knight Frank views that improving leads for United States trade agreements and declining credit expenses anticipated in the second part of this year could boost a lot more financial investments around the region.
The uplift in volume signifies Apac’s ongoing demand to global capital, observes Craig Shute, CEO of Apac at Knight Frank. “Despite continuous uncertainties, investor interest continues to be high, with cross-border runs raising and fields like living and data centres continuing to exceed. There are clear indications that long-term basics continue to be appealing,” he adds.
On the flip side, the industrial field saw reduced investments in both q-o-q and y-o-y terms, that Knight Frank credits to continued uncertainty over US trade policy.
TMW Maxwell Chip Eng Seng, Singhaiyi and Chuan Holdings Limited
Real estate investments in Asia Pacific (Apac) got a boost in 2Q2025, data compiled by Knight Frank shows. The region recorded US$ 42 billion ($53 billion) in investment volume last quarter, logging 7.4% growth q-o-q and 10.1% buildup y-o-y.
Australia was the biggest receiver of overseas inflows, at US$ 3.8 billion. These consist of two significant living field offers: The sale of 65 senior living facilities by Brookfield Asset Administration to Australia’s The Living Business for US$ 2.5 billion; and Greystar’s procurement of a student 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 central areas.
Cross-border investment activity accounted for US$ 12.1 billion of total investment quantity, showing a 50.1% y-o-y surge. The bulk of cross-border resources flows was greatly supported by United States capitalists, says Knight Frank.
Consequently, while standard properties continued to control task last quarter, different asset classes such as the living field and data centres observed an uptick. Financial investment in the living field virtually increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre investment quantity totalled US$ 2.4 billion, up 40.2% q-o-q.
