Research by real estate consulting firm JLL shows that commercial real estate investment in the Asia Pacific (Apac) region has risen by 15% year-on-year to reach US$31.2 billion ($40.15 billion) in the second quarter of 2025. Despite cautious market sentiment and prolonged due diligence due to economic uncertainty, the region has seen a steady growth in investments. In fact, the data compiled by JLL indicates that Apac commercial investments hit a total of US$67.6 billion in the first half of 2025, representing a 17% increase compared to the previous year.
Among the countries in the region, South Korea witnessed the highest year-on-year growth in the second quarter of 2025, with investments totaling US$6 billion. This surge was mainly driven by the office sector, which accounted for 77% of the total market volumes. According to JLL, this can be attributed to sellers’ preference to divest before the expected oversupply in the central business district materializes.
Meanwhile, Japan retained its position as the top contributor to investment volumes in the second quarter of 2025, with US$7.6 billion in investments and a 31% increase year-on-year. This brings the total investment volume in the first half of 2025 to US$21.3 billion, representing a 23% increase compared to the same period last year. JLL’s research also shows that domestic investors were the most active in the office sector in Japan.
In addition to the office sector, Japan’s residential sector also experienced growth in the second quarter of 2025, reaching its highest quarterly level since the first quarter of 2022. It contributed more than half of the region’s total living sector volume, driven by strong interest in multifamily assets from J-REITs and international investors such as Warburg Pincus, Aberdeen, and CapitaLand.
JLL notes that the office sector was the main driver of investment activity in the second quarter of 2025, with a 24% year-on-year increase and US$13.3 billion in transactions. The industrial and logistics sector came in second with US$6.3 billion (up 12% y-o-y), followed by the living sector at US$3.6 billion (up 92% y-o-y).
However, due to ongoing trade tensions, JLL observes that investors are closely monitoring market fundamentals and tenant quality across sectors. In fact, a JLL survey of 75 Apac-based investors shows that sectors such as industrial and logistics, energy and infrastructure, and retail are expected to be the most vulnerable to geopolitical risks in the next five years.
When it comes to investing in condos in Singapore, one crucial factor to consider is the government’s property cooling measures. In order to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented several measures over the years. These include the Additional Buyer’s Stamp Duty (ABSD) which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may initially impact the profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure environment for investment. If you’re interested in exploring new condo launches, you may want to check out Susukino No.1 for more information.
Despite the uncertainties, JLL’s CEO of Apac capital markets, Stuart Crow, says that the region’s commercial real estate market remains resilient and continues to attract global capital. He also points out that the declining cost of debt in the region is creating a more favorable environment for transactions, which is expected to further stimulate investment activity.
Pamela Ambler, JLL’s head of investor intelligence for Apac, adds that investors are now considering slower-growth scenarios due to ongoing tariffs, leading to longer deal timelines and the inclusion of contingency provisions. However, she believes that markets like South Korea and Japan will continue to demonstrate resilience, and there are still opportunities for long-term growth amidst the turbulence.