Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore also stood out last quarter, with international funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million documented in 2Q2024. The surge came 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, in addition to Brookfield Asset Management’s purchase of 3 commercial buildings from Mapletree Industrial Trust at US$ 420 million.
Realty investments in Asia Pacific (Apac) got a boost in 2Q2025, information compiled by Knight Frank shows. The area reported US$ 42 billion ($53 billion) in financial investment volume last quarter, logging 7.4% growth q-o-q and 10.1% progress y-o-y.
Looking in advance, while long term geopolitical and economic instability might dampen belief, Knight Frank watches that enhancing prospects for United States trade agreements and decreasing loaning expenses expected in the 2nd half of this year might stimulate much more financial investments around the area.
On the other hand, the industrial field saw lower investments in both q-o-q and y-o-y terms, which Knight Frank credits to continued uncertainty over United States trade policy.
Because of this, whilst traditional possessions continued to control activity last quarter, alternate asset classes such as the living field and data centers found an uptick. Financial investment in the living market almost increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre financial investment volume completed US$ 2.4 billion, up 40.2% q-o-q.
The uplift in quantity represents Apac’s continuous demand to global capital, observes Craig Shute, CEO of Apac at Knight Frank. “Regardless of ongoing unpredictabilities, investor interest remains high, with cross-border movements growing and industries like living and data centres continuing to outperform. There are clear signs that long-term fundamentals stay attractive,” he adds.
Cross-border investment activity made up US$ 12.1 billion of overall financial investment quantity, reflecting a 50.1% y-o-y rise. The bulk of cross-border capital flows was mainly sustained by US clients, claims Knight Frank.
Australia was the biggest recipient of overseas inflows, at US$ 3.8 billion. These consist of two considerable living industry offers: The sale of 65 senior living facilities by Brookfield Asset Management to Australia’s The Living Firm for US$ 2.5 billion; and Greystar’s purchase of a student housing profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living industry, Australia netted financial investments for prime workplace assets in main locations.
Christine Li, Knight Frank’s head of study for Apac, indicates that financiers in Apac property are revealing a higher sense of discernment around asset kind and high quality. “We see clear indicators that international capital is being attracted towards places and sectors offering revenue stability and efficient growth leads, even as trade tensions and the prospect of changing monetary plan add an additional layer of intricacy,” she discusses.
