Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Cross-border investment activity made up US$ 12.1 billion of general investment quantity, showing a 50.1% y-o-y surge. The bulk of cross-border funding flows was mainly sustained by US investors, states Knight Frank.
Australia was the largest receiver of overseas inflows, at US$ 3.8 billion. These include two substantial living sector deals: 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 acquisition of a student housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living industry, Australia netted investments for prime workplace assets in central places.
Real estate financial investments in Asia Pacific (Apac) got an increase in 2Q2025, data put together by Knight Frank reveals. The region recorded US$ 42 billion ($53 billion) in investment volume last quarter, logging 7.4% growth q-o-q and 10.1% growth y-o-y.
Singapore likewise stuck out last quarter, with international funding inflows to the city-state hitting US$ 2.3 billion, up from US$ 342 million videotaped in 2Q2024. The surge originated from IOI Group’s acquisition of a 50.1% stake 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 industrial properties from Mapletree Industrial Trust at US$ 420 million.
Christine Li, Knight Frank’s head of research for Apac, notes that financiers in Apac realty are revealing a better feeling of discernment around asset kind and quality. “We see clear signs that international capital is gravitating in the direction of areas and fields providing earnings security and trusted growth leads, even as trade tensions and the prospect of changing monetary plan add an extra layer of intricacy,” she describes.
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 ongoing unpredictability over United States trade protocol.
Looking in advance, while prolonged geopolitical and economic instability can dampen sentiment, Knight Frank views that improving leads for United States trade agreements and decreasing loaning expenses anticipated in the second part of this year might stimulate more investments across the area.
The uplift in volume signifies Apac’s continuous demand to global capital, observes Craig Shute, CEO of Apac at Knight Frank. “In spite of ongoing uncertainties, financier interest continues to be high, with cross-border movements growing and sectors such as living and data centres continuing to surpass. There are clear signs that long-term principles stay appealing,” he adds.
As a result, whilst standard possessions remained to control task last quarter, alternate possession classes such as the living sector and data facilities saw an uptick. Investment in the living field virtually doubled y-o-y to strike US$ 4.9 billion in 2Q2025, while information centre investment quantity amounted to US$ 2.4 billion, up 40.2% q-o-q.
