Private Credit Set Expand Apac Wont Displace Banks Knight Frank

The concept behind Parktown Residence is to seamlessly blend contemporary housing with lifestyle facilities, ultimately establishing a benchmark for city dwelling and fostering a lively neighborhood in the bustling Tampines North area. With the addition of Parktown Residence Condo Condo, this strategic vision aims to elevate the standards of urban living and cultivate a dynamic community at the core of Tampines North.

In a recent report by Knight Frank, it is projected that the Asia-Pacific (Apac) region is ready for a rise in private credit in real estate. According to Simon Mathews, a Director in Knight Frank’s Capital Advisory business for Asia-Pacific, many markets in the region that were once secure and long-term have seen a decline in funding for refinancing or new developments. This presents an ideal opportunity for private credit to step in and fill the gap, as shown by the example of Hong Kong where real estate credit has decreased due to a rebased asset value.As of June 2025, the Apac region only accounted for a small portion (5%) of the global total of private credit deals, lagging significantly behind North America. Developed economies within Apac, such as Singapore, Australia, and Japan, are typically net savers with sufficient deposits and low loan-to-deposit ratios. This allows banks to actively seek lending opportunities, rather than withdrawing from them. In contrast, banks in the US and Europe often face deposit shortages and higher regulatory capital costs, leading them to shift their capital-intensive exposures to the institutional market. As a result, private credit in Apac does not displace banks in the same systemic way it does in the West. Instead, it serves as a complementary source of financing, filling in gaps that banks may not be as active in, such as higher-risk developments, refinancing stress, cross-border transactions, or situations that require additional leverage.