Apac Records Us312 Bil 2Q2025 Commercial Real Estate Investment Jll

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Real estate consulting firm JLL has reported a 15% year-on-year increase in commercial real estate investment in the Asia Pacific (Apac) region in 2Q2025. According to the company, this growth comes despite cautious market sentiment and prolonged due diligence due to economic uncertainty.

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Apac commercial investments totaled US$67.6 billion in the first half of 2025, up 17% year-on-year. South Korea saw the highest growth in the second quarter at 72%, bringing in US$6 billion of investments. This surge was largely due to the office sector, which accounted for 77% of the total market volumes. JLL notes that sellers are divesting before central business district oversupply materializes.

Japan remained the region’s top contributor to 2Q2025 investment volumes at US$7.6 billion, a 31% year-on-year increase. In the first half of 2025, Japan recorded a total investment volume of US$21.3 billion, up 23% year-on-year. According to JLL’s research, domestic investors were most active in the office sector. The country’s residential sector also saw growth in the second quarter, reaching its highest quarterly level since 1Q2022, and contributing more than half of the region’s total living sector volume.

JLL attributes this growth to strong interest in multifamily assets from J-REITs and international investors such as Warburg Pincus, Aberdeen, and CapitaLand. The office sector was the most active in terms of investment activity in 2Q2025, up 24% year-on-year and accounting for US$13.3 billion in transactions. The industrial and logistics sector was second with US$6.3 billion (up 12% year-on-year), followed by the living sector at US$3.6 billion (up 92% year-on-year).

Due to the ongoing tariff tensions, JLL observes that investors are closely monitoring market fundamentals and tenant quality across sectors. The company’s survey of 75 Apac-based investors found that in the next five years, the industrial and logistics, energy and infrastructure, and retail sectors are expected to be the most vulnerable to geopolitical risk.

However, Stuart Crow, CEO of Apac capital markets at JLL, notes that the region’s commercial real estate remains resilient despite geopolitical tensions and continues to attract global capital. Pamela Ambler, JLL’s head of investor intelligence for Apac also adds that with central banks across the region continuing their rate-cutting cycles, the cost of debt is declining, creating a more favorable environment for transactions and boosting investment activity.

Ambler also notes that investors are considering slower-growth scenarios under the assumption of lasting tariffs, resulting in longer deal timelines and the inclusion of contingency provisions. She adds that markets such as South Korea and Japan have shown resilience, making them attractive for investors seeking long-term growth opportunities amidst the turbulence.