Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Cross-border investment activity represented US$ 12.1 billion of overall financial investment quantity, showing a 50.1% y-o-y rise. The bulk of cross-border resources flows was greatly upheld by US clients, states Knight Frank.
The boost in quantity represents Apac’s continued appeal to international funding, observes Craig Shute, Chief Executive Officer of Apac at Knight Frank. “Regardless of continuous uncertainties, financier interest stays high, with cross-border runs increasing and sectors such as living and data centres remaining to surpass. There are clear indications that long-term principles remain eye-catching,” he includes.
Christine Li, Knight Frank’s head of research for Apac, indicates that capitalists in Apac real estate are revealing a greater feeling of discernment around asset type and high quality. “We see clear indications that worldwide capital is moving towards areas and fields providing revenue stability and trusted growth prospects, even as trade tensions and the prospect of shifting monetary plan add an additional layer of complexity,” she describes.
Australia was the biggest recipient of abroad inflows, at US$ 3.8 billion. These consist of 2 considerable living sector offers: The sale of 65 senior living facilities by Brookfield Asset Administration to Australia’s The Living Company for US$ 2.5 billion; and Greystar’s acquisition of a trainee real estate profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living sector, Australia netted investments for prime office assets in central places.
On the other hand, the industrial market saw lower investments in both q-o-q and y-o-y terms, that Knight Frank attributes to continued unpredictability over United States trade policy.
Looking in advance, whilst long term geopolitical and financial instability can dampen belief, Knight Frank sees that enhancing prospects for United States trade agreements and decreasing credit costs anticipated in the second part of this year might boost a lot more investments across the area.
Because of this, while typical possessions continued to control activity last quarter, alternative possession courses such as the living industry and data centers found an uptick. Financial investment in the living market nearly increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre investment quantity totalled US$ 2.4 billion, up 40.2% q-o-q.
Singapore also stood out last quarter, with foreign resources inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million documented in 2Q2024. The surge came 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, along with Brookfield Asset Management’s purchase of 3 commercial buildings from Mapletree Industrial Trust at US$ 420 million.
Realty financial investments in Asia Pacific (Apac) got a boost in 2Q2025, data assembled by Knight Frank shows. The area reported US$ 42 billion ($53 billion) in financial investment quantity previous quarter, logging 7.4% development q-o-q and 10.1% growth y-o-y.
