Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Australia was the biggest receiver of abroad inflows, at US$ 3.8 billion. These consist of 2 substantial living sector 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 trainee housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia nabbed investments for prime workplace assets in main places.
On the other side, the commercial sector viewed lower investments in both q-o-q and y-o-y terms, which Knight Frank attributes to continued uncertainty over US trade policy.
Singapore likewise stood out last quarter, with international capital inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million videotaped in 2Q2024. The surge 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, along with Brookfield Asset Management’s acquisition of 3 industrial properties from Mapletree Industrial Trust at US$ 420 million.
The uplift in volume indicates Apac’s continuous demand to worldwide capital, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “In spite of recurring uncertainties, capitalist interest remains high, with cross-border movements growing and industries such as living and information centres continuing to surpass. There are clear indicators that long-term fundamentals stay eye-catching,” he adds.
Christine Li, Knight Frank’s head of research for Apac, indicates that capitalists in Apac realty are revealing a better feeling of discernment around asset type and high quality. “We see clear signs that worldwide capital is being attracted in the direction of places and sectors providing revenue stability and trusted development leads, even as trade tensions and the possibility of moving monetary policy include an added layer of intricacy,” she clarifies.
Looking ahead, while prolonged geopolitical and financial instability might dampen view, Knight Frank views that increasing prospects for US trade agreements and decreasing borrowing prices anticipated in the 2nd part of this year can stimulate more investments throughout the region.
Cross-border investment activity accounted for US$ 12.1 billion of total investment quantity, showing a 50.1% y-o-y rise. The bulk of cross-border funding flows was mostly upheld by United States clients, states Knight Frank.
Because of this, whilst conventional properties continued to control activity last quarter, alternate property courses such as the living sector and information facilities found an uptick. Investment in the living field almost doubled y-o-y to hit US$ 4.9 billion in 2Q2025, while data centre investment quantity completed US$ 2.4 billion, up 40.2% q-o-q.
Property financial investments in Asia Pacific (Apac) got an increase in 2Q2025, information assembled by Knight Frank reveals. The area documented US$ 42 billion ($53 billion) in investment quantity past quarter, logging 7.4% development q-o-q and 10.1% progress y-o-y.
