Apac Real Estate Investments Grew Us42 Bil 2Q2025 Boosted Living Sector And Data Centres Knight
According to data compiled by Knight Frank, real estate investments in the Asia Pacific (Apac) region received a boost in 2Q2025. The total investment volume in the region reached US$42 billion ($53 billion), showing a 7.4% growth quarter-on-quarter and a 10.1% growth year-on-year.
Craig Shute, CEO of Apac at Knight Frank, notes that the increase in investment volume signifies the continued appeal of the region to global capital. He adds that despite ongoing uncertainties, investor interest remains high, with cross-border flows on the rise and sectors like living and data centers performing well. This indicates that the long-term fundamentals of the market remain attractive.
Out of the overall investment volume, US$12.1 billion came from cross-border investments, which saw a significant 50.1% year-on-year increase. Knight Frank reports that most of these cross-border capital flows were driven by US investors.
Australia was the top destination for overseas investments, receiving US$3.8 billion. This included two major deals in the living sector: the sale of 65 senior living facilities by Brookfield Asset Management to Australia’s The Living Company 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. Apart from the living sector, Australia also attracted investments in prime office assets in central locations.
Singapore also saw a significant increase in foreign capital inflows, reaching US$2.3 billion in 2Q2025, up from US$342 million in the same quarter last year. This surge can be attributed to IOI Group’s acquisition of a 50.1% stake in the South Beach mixed-use development from joint-venture partner City Developments for US$650 million, as well as Brookfield Asset Management’s purchase of three industrial properties from Mapletree Industrial Trust for US$420 million.
Christine Li, Knight Frank’s head of research for Apac, points out that investors in the region are becoming more discerning when it comes to asset type and quality. She notes that there is a clear trend of international capital gravitating towards locations and sectors with stable income and growth prospects, even amidst trade tensions and potential shifts in monetary policies.
As a result, while traditional assets continue to dominate investment activity, there has been an increase in alternative asset classes such as the living sector and data centers. Investment in the living sector nearly doubled year-on-year to reach US$4.9 billion in 2Q2025, while data center investment volume totaled US$2.4 billion, showing a 40.2% quarter-on-quarter increase.
However, the industrial sector saw lower investments both quarter-on-quarter and year-on-year, which Knight Frank attributes to the ongoing uncertainty surrounding US trade policies.
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Looking ahead, while prolonged geopolitical and economic instability may affect sentiment, Knight Frank believes that improving prospects for US trade agreements and declining borrowing costs in the second half of the year could stimulate more investments across the region. Despite cautious activity in the market, real estate investments saw a 1.1% quarter-on-quarter increase in 2Q2025, signaling potential growth in the coming months.