Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Cross-border investment activity accounted for US$ 12.1 billion of total financial investment volume, reflecting a 50.1% y-o-y rise. The bulk of cross-border resources flows was greatly upheld by United States clients, says Knight Frank.
Australia was the biggest receiver of overseas inflows, at US$ 3.8 billion. These include 2 substantial living field offers: The sale of 65 senior living facilities by Brookfield Asset Administration to Australia’s The Living Firm for US$ 2.5 billion; and Greystar’s acquisition of a student housing profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Past the living sector, Australia netted financial investments for prime office space assets in main areas.
Real estate financial investments in Asia Pacific (Apac) got an increase in 2Q2025, data put together by Knight Frank shows. The area recorded US$ 42 billion ($53 billion) in financial investment quantity past quarter, logging 7.4% development q-o-q and 10.1% buildup y-o-y.
Consequently, while standard properties continued to dominate task last quarter, alternate possession classes such as the living industry and data centers observed an uptick. Investment in the living sector nearly doubled y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre investment volume totalled US$ 2.4 billion, up 40.2% q-o-q.
On the other hand, the commercial industry viewed lower investments in both q-o-q and y-o-y terms, which Knight Frank credits to ongoing uncertainty over US trade policy.
Christine Li, Knight Frank’s head of study for Apac, notes that investors in Apac realty are showing a higher feeling of discernment around asset type and high quality. “We see clear signs that international capital is gravitating towards places and sectors providing earnings stability and trusted development prospects, even as trade tensions and the prospect of shifting monetary plan include an additional layer of intricacy,” she discusses.
The boost in volume represents Apac’s continued demand to worldwide financing, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “In spite of recurring uncertainties, investor interest continues to be high, with cross-border movements increasing and markets such as living and data centres continuing to exceed. There are clear signs that long-term fundamentals remain attractive,” he includes.
Looking ahead, whilst extended geopolitical and economic instability might dampen belief, Knight Frank checks out that improving leads for United States trade agreements and declining credit expenses anticipated in the second half of this year could stimulate more financial investments around the region.
Singapore likewise stuck out last quarter, with international resources inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million recorded in 2Q2024. The surge originated from IOI Group’s acquisition of a 50.1% risk in mixed-use development South Beach from joint-venture partner City Developments for US$ 650 million, together with Brookfield Asset Management’s purchase of three commercial buildings from Mapletree Industrial Trust at US$ 420 million.
