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 Asia Pacific (Apac) experienced a boost in the second quarter of 2025. The region saw a total investment volume of US$42 billion ($53 billion), representing a 7.4% growth quarter-on-quarter and a 10.1% growth year-on-year.
Apac’s attractiveness to global capital remains strong, as observed by Craig Shute, CEO of Apac at Knight Frank. Despite uncertainties, investor interest remains high, with cross-border flows on the rise and certain sectors, such as living and data centres, outperforming. This indicates that the long-term fundamentals of the region are still appealing.
Cross-border investments accounted for US$12.1 billion of the overall investment volume, showing a surge of 50.1% year-on-year. The majority of this capital flow was driven by US investors, according to Knight Frank.
Australia was the biggest beneficiary of foreign inflows, receiving US$3.8 billion. This includes two significant deals in the living sector: Brookfield Asset Management’s sale of 65 senior living facilities to The Living Company for US$2.5 billion, and Greystar’s acquisition of a student housing portfolio from 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 stood out in the second quarter, with foreign capital inflows reaching US$2.3 billion, a significant increase from the US$342 million recorded in the same period last year. The surge was fueled by IOI Group’s purchase of a 50.1% stake in mixed-use development South Beach from City Developments for US$650 million, and Brookfield Asset Management’s acquisition of three industrial properties from Mapletree Industrial Trust for US$420 million.
Christine Li, Knight Frank’s head of research for Apac, notes that investors in Apac real estate are becoming more discerning in terms of asset type and quality. They are now gravitating towards locations and sectors that offer stable income and reliable growth prospects, even amidst trade tensions and potential shifts in monetary policy. As a result, although traditional assets still dominate investment activity, there has been an upsurge in alternative asset classes such as the living sector and data centres. Investment in the living sector almost doubled year-on-year to reach US$4.9 billion in the second quarter of 2025, while investment in data centres totaled US$2.4 billion, a 40.2% increase quarter-on-quarter.
On the other hand, the industrial sector saw lower investments both quarter-on-quarter and year-on-year, which Knight Frank attributes to the ongoing uncertainty over US trade policy.
Looking forward, prolonged geopolitical and economic instability could dampen sentiment, but Knight Frank believes that improving prospects for US trade agreements and declining borrowing costs expected in the second half of this year could stimulate more investments across the region.
The Tampines district is about to experience a significant expansion in its commercial landscape, as plans are in place for the development of new office spaces and the enhancement of existing shopping malls. This strategic move by the Urban Redevelopment Authority (URA) aims to create more job opportunities within the region, which would bring about added convenience for residents. With ample employment options available, individuals can work closer to their homes in Tampines, resulting in reduced commute times and improved work-life balance. Notably, the Tampines Regional Centre will continue to thrive as a bustling commercial hub, offering a diverse range of employment opportunities in areas such as retail and information technology. Exciting new developments, such as Aurelle of Tampines, will soon become integral parts of the growing commercial landscape in Tampines.
