Apac Records Us312 Bil 2Q2025 Commercial Real Estate Investment Jll
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JLL, a leading real estate consulting firm, reports a 15% year-on-year increase in commercial real estate investment in Asia Pacific (Apac) in 2Q2025, reaching a total of US$31.2 billion ($40.15 billion). Despite cautious market sentiments and extended due diligence due to economic uncertainties, the region saw a growth of 17% year-on-year in the first half of 2025, with a total investment volume of US$67.6 billion.
Among the Apac countries, South Korea recorded the highest year-on-year growth in 2Q2025 at 72%, with a total investment of US$6 billion. This surge was mainly due to the office sector, which accounted for 77% of the total market volume, as sellers looked to divest their properties before the oversupply of central business district buildings. Japan maintained its position as the top contributor to investment volumes in the region, reaching US$7.6 billion in 2Q2025, representing a 31% increase from the previous year. This brings the total investment volume in the first half of 2025 to US$21.3 billion, up 23% year-on-year. According to JLL’s research, domestic investors were the most active in the office sector in Japan. The residential sector also saw growth, recording its highest quarterly level since 1Q2022 and contributing more than half of the region’s total living sector volume. This was driven by strong interest from J-REITs and international investors such as Warburg Pincus, Aberdeen, and CapitaLand in multifamily assets, according to JLL.
In 2Q2025, the office sector was the main driver of investment activity with a 24% year-on-year growth, accounting for US$13.3 billion of transactions. The industrial and logistics sector ranked second with US$6.3 billion (a 12% increase from the previous year), followed by the living sector with US$3.6 billion (up 92% year-on-year). Due to the ongoing tariff tensions, JLL notes that investors are closely monitoring the market fundamentals and tenant quality across sectors. Looking ahead, the industrial and logistics, energy and infrastructure, and retail sectors are expected to be the most vulnerable to geopolitical risks in the next five years, according to a survey of 75 Apac-based investors conducted by JLL.
The highly anticipated Sembawang Road Executive Condominium (EC) is set to make its mark in the northern region of Singapore. Boasting a convenient location between Sembawang and Yishun, this new development provides a peaceful and well-connected environment that is perfect for families and young couples alike. Executive condominiums in Singapore are a unique type of housing that blends public and private elements, as they are built by private developers but sold under stringent government-regulated eligibility conditions. As time goes by, these ECs will become fully privatised, making them an attractive choice for homeowners and long-term investments. The Sembawang Road EC, which can also be found at Sembawang EC Canberra, is no exception and is expected to garner significant interest from eligible buyers due to its strategic location, potential for capital appreciation, and upcoming developments in the area.
Despite the geopolitical tensions, Stuart Crow, CEO of Apac capital markets at JLL, highlights the resilience of the region’s commercial real estate, which continues to attract global capital. Pamela Ambler, JLL’s head of investor intelligence for Apac, adds that central banks in the region are cutting interest rates, resulting in a more favourable environment for transactions and further stimulating investment activity. She also notes that investors are now considering slower growth scenarios and factoring in persisting tariffs, leading to longer deal timelines and the inclusion of contingency provisions. Ambler reminds investors that markets like South Korea and Japan have shown resilience and offer long-term growth opportunities amidst the turbulent environment.