Apac Real Estate Investments Grew Us42 Bil 2Q2025 Boosted Living Sector And Data Centres Knight
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Investment activity in the Asia Pacific (Apac) real estate market saw strong growth in the second quarter of 2025, according to data compiled by Knight Frank. The region recorded a total investment volume of US$42 billion ($53 billion), representing a 7.4% increase quarter-on-quarter and a 10.1% increase year-on-year.
This significant increase in investment volume highlights the continued appeal of Apac to global capital, notes Craig Shute, CEO of Apac at Knight Frank. Despite uncertainties, investor interest remains high, with cross-border flows increasing and sectors like living and data centers performing well. According to Shute, this indicates that long-term fundamentals in the region remain attractive.
Cross-border investment activity, which accounted for US$12.1 billion of the total investment volume, saw a 50.1% surge year-on-year. The majority of cross-border capital flows were driven by US investors, according to Knight Frank.
Australia was the top destination for overseas investments, receiving a total of US$3.8 billion. Notable deals in the living sector included the sale of 65 senior living facilities by Brookfield Asset Management to The Living Company for US$2.5 billion, as well as Greystar’s acquisition of a student housing portfolio from GIC and Wee Hur Holdings for US$1 billion. Australia also saw investments in prime office assets in central locations.
Singapore also saw a significant increase in foreign capital inflows, totaling US$2.3 billion, up from US$342 million in the second quarter of 2024. This increase was driven by IOI Group’s acquisition of a 50.1% stake in South Beach from joint-venture partner City Developments for US$650 million, and Brookfield Asset Management’s purchase of three industrial properties from Mapletree Industrial Trust for US$420 million.
According to Christine Li, head of research for Apac at Knight Frank, investors in the region are becoming more discerning, focusing on asset type and quality. This is reflected in the growing interest in alternative asset classes like the living sector and data centers, which saw investment volumes of US$4.9 billion and US$2.4 billion, respectively. On the other hand, investment in the industrial sector saw a decline, which is attributed to ongoing uncertainty over US trade policy.
Looking ahead, Knight Frank believes that despite geopolitical and economic instability, prospects for US trade agreements and declining borrowing costs in the second half of the year could stimulate further investments in the Apac region.