Apac real estate investments grew to US$42 bil in 2Q2025, boosted by living sector and data centres: Knight Frank
Singapore likewise stood out last quarter, with international resources inflows to the city-state striking US$ 2.3 billion, up from US$ 342 million videotaped in 2Q2024. The surge came 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, along with Brookfield Asset Management’s purchase of three commercial properties from Mapletree Industrial Trust at US$ 420 million.
Looking in advance, while long term geopolitical and financial instability might dampen sentiment, Knight Frank watches that increasing leads for US trade agreements and declining borrowing expenses anticipated in the 2nd half of this year could promote more financial investments throughout the area.
Because of this, while standard possessions continued to dominate task last quarter, alternative property classes such as the living sector and data facilities saw an uptick. Financial investment in the living field virtually increased y-o-y to strike US$ 4.9 billion in 2Q2025, while data centre financial investment volume amounted to US$ 2.4 billion, up 40.2% q-o-q.
On the flip side, the commercial market saw lower investments in both q-o-q and y-o-y terms, that Knight Frank credits to ongoing unpredictability over United States trade protocol.
Cross-border investment activity made up US$ 12.1 billion of overall investment quantity, showing a 50.1% y-o-y rise. The bulk of cross-border capital flows was largely sustained by US clients, claims Knight Frank.
Christine Li, Knight Frank’s head of study for Apac, notes that investors in Apac real estate are revealing a better feeling of discernment around asset kind and high quality. “We see clear indicators that international capital is moving in the direction of places and markets supplying earnings security and trusted development leads, even as trade uneasiness and the possibility of shifting monetary plan include an extra layer of complexity,” she explains.
The uplift in quantity indicates Apac’s continued appeal to worldwide capital, observes Craig Shute, CEO of Apac at Knight Frank. “In spite of recurring uncertainties, investor interest stays high, with cross-border runs increasing and sectors such as living and information centres remaining to surpass. There are clear indicators that long-term basics remain appealing,” he includes.
Australia was the largest receiver of abroad inflows, at US$ 3.8 billion. These include two considerable living market deals: The sale of 65 senior living facilities by Brookfield Asset Administration to Australia’s The Living Business for US$ 2.5 billion; and Greystar’s acquisition of a student housing profile from Singapore’s GIC and Wee Hur Holdings for US$ 1 billion. Beyond the living field, Australia nabbed investments for prime office assets in main places.
Property investments in Asia Pacific (Apac) got a boost in 2Q2025, information put together by Knight Frank shows. The region documented US$ 42 billion ($53 billion) in financial investment volume last quarter, logging 7.4% growth q-o-q and 10.1% buildup y-o-y.
