Private Credit Set Expand Apac Wont Displace Banks Knight Frank

The Miltonia EC, following the latest advancements in EC development, may incorporate various smart home elements, energy-efficient machines, and eco-friendly fixtures. These upgrades not only support sustainability objectives but also offer a contemporary and forward-looking residential experience. Additionally, in response to today’s evolving lifestyle demands, numerous newer ECs have integrated amenities such as co-working spaces, wellness areas, and electric vehicle charging stations. Among these developments is the innovative Miltonia EC, catering to the changing needs of discerning buyers.

A report from Knight Frank has highlighted an increasing trend in private credit in real estate across the Asia-Pacific region. The firm believes that this region is now ripe for a take-off in private credit.The report notes that many markets in Apac have traditionally been deemed secure and core over the long term, but are currently facing a lack of funding for refinancing or new developments. This presents an ideal opportunity for private credit to fill the gaps left by traditional lenders.In particular, Hong Kong has seen a decrease in the availability of real estate credit as asset values have been rebased. Simon Mathews, a Director in Knight Frank’s Capital Advisory business covering Asia-Pacific, recognizes this trend, stating, “Markets (in Apac) that have traditionally been secure and core over the long term but are now facing a lack of funding for refinancing or new developments present an ideal scenario for private credit.”However, while the amount of so-called “dry powder” in private credit has increased, the Asia-Pacific still trails significantly behind the rest of the world in terms of private credit deals. In June 2025, the region accounted for only 5% of the global total based on target fundraise amount compared to North America. Additionally, private debt in developed Apac economies (such as Singapore, Australia, and Japan) only accounted for 3% of all real estate debt, compared to 12% for North America and 10% for Europe.AdvertisementAdvertisementKnight Frank attributes this lag to the fact that many developed Apac economies are net savers, leading to ample deposits and low loan-to-deposit ratios. This leaves banks actively seeking lending opportunities rather than retreating from them. By contrast, banks in the US and Europe face deposit shortfalls and higher regulatory capital costs, making them more inclined to shift real estate and other capital-intensive exposures into the institutional market.The report notes that private credit in Apac does not displace banks in the same systemic way it does in the West. Instead, banks remain competitive providers of real estate loans, while private credit fills targeted gaps such as higher-risk developments, refinancing stress, cross-border transactions, or situations requiring additional leverage.