Real estate investments in the Asia Pacific region (Apac) saw a significant increase in the second quarter of 2025, according to data collected by Knight Frank. The region recorded a total investment volume of US$42 billion ($53 billion), which marked a 7.4% increase compared to the previous quarter and a 10.1% increase year-on-year.This rise in volume shows that Apac continues to attract global capital, according to Craig Shute, the CEO of Apac at Knight Frank. Despite uncertainties, investor interest remains high, with cross-border investments increasing and sectors such as living and data centres performing well. This indicates that the long-term fundamentals of Apac’s real estate market are still attractive.Cross-border investment activity accounted for US$12.1 billion of the total investment volume, which is a 50.1% increase year-on-year. Knight Frank reports that the majority of this capital flow came from US investors.Australia was the largest recipient of foreign investments with US$3.8 billion. These investments include two significant deals in the living sector: the purchase of 65 senior living facilities by Australia’s The Living Company for US$2.5 billion from Brookfield Asset Management, and the acquisition of a student housing portfolio worth US$1 billion by Greystar from Singapore’s GIC and Wee Hur Holdings. In addition, prime office assets in central locations also attracted investments in Australia.Singapore also saw a significant increase in foreign investments, with a total of US$2.3 billion in the second quarter compared to US$342 million in the same period last year. This surge was mainly due to IOI Group’s acquisition of a 50.1% stake in the mixed-use development South Beach from joint-venture partner City Developments for US$650 million and Brookfield Asset Management’s purchase 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 are becoming more selective when it comes to asset type and quality in Apac’s real estate market. International capital is gravitating towards locations and sectors that offer stable income and reliable growth prospects, even amid trade tensions and potential changes in monetary policy. As a result, while traditional assets still dominate investments, there has been an increase in alternative asset classes such as the living sector and data centres. Investments in the living sector nearly doubled year-on-year to reach US$4.9 billion in the second quarter of 2025, while data centre investments totalled US$2.4 billion, a 40.2% increase compared to the previous quarter.On the other hand, the industrial sector saw lower investments both quarter-on-quarter and year-on-year, which Knight Frank attributes to ongoing uncertainty surrounding US trade policies.Looking ahead, Knight Frank believes that prolonged geopolitical and economic instability could dampen market sentiment. However, they anticipate that improving prospects for US trade agreements and lower borrowing costs in the second half of the year could potentially stimulate more investments across the region.
Investing in real estate is a wise decision, but it’s important to consider the location before making any investment. This is especially crucial in Singapore, a city known for its fast-paced development and growing property market. Condominiums located in central areas or in close proximity to essential amenities like schools, shopping malls, and public transportation hubs tend to have a higher appreciation value. Locations such as Orchard Road, Marina Bay, and the Central Business District (CBD), are prime areas where property values have consistently shown growth. Additionally, the presence of reputable schools and educational institutions in these areas adds to the appeal of condos, making them highly sought after by families and further increasing their investment potential. For more information on real estate projects in Singapore, visit Singapore Projects.