Apac Real Estate Investments Grew Us42 Bil 2Q2025 Boosted Living Sector And Data Centres Knight
On June 27, a press release was issued by the joint venture partners, revealing plans for the forthcoming development of Parktown Residence. The development, which is set to be located in Tampines North, will consist of about 1,190 modern homes and will also incorporate retail and community facilities tailored to meet the needs and preferences of the expanding residential community. As part of the new development, future residents can also expect to enjoy the convenience of having Parktown Residence as a natural part of their everyday lifestyle.
Investments in the Asia Pacific (Apac) real estate market received a boost in the second quarter of 2025, according to data compiled by Knight Frank. The region recorded a total investment volume of US$42 billion ($53 billion), showing growth of 7.4% quarter-on-quarter and 10.1% year-on-year.
The increase in investment volume reflects Apac’s continued attractiveness to global capital, says Craig Shute, CEO of Apac at Knight Frank. Despite ongoing uncertainties, investor interest remains high, with cross-border flows increasing and sectors such as living and data centres continuing to outperform. This is a clear indication that the region’s long-term fundamentals remain attractive.
In terms of cross-border investments, the region saw a surge of 50.1% year-on-year, accounting for US$12.1 billion of the total investment volume. The majority of these capital flows were driven by US investors, according to Knight Frank.
Australia emerged as the top destination for overseas investments, receiving US$3.8 billion, which includes two major deals in the living sector. The first deal involved the sale of 65 senior living facilities by Brookfield Asset Management to Australia’s The Living Company for US$2.5 billion, while the other was Greystar’s acquisition of a student housing portfolio from Singapore’s GIC and Wee Hur Holdings for US$1 billion. Apart from the living sector, Australia also saw investments in prime office assets in central locations.
Singapore also saw a significant increase in foreign capital inflow, reaching US$2.3 billion in Q2 of 2025, up from US$342 million in the same period last year. This was driven by IOI Group’s purchase 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 acquisition of three industrial properties from Mapletree Industrial Trust for US$420 million.
According to Christine Li, Knight Frank’s head of research for Apac, investors in the region are becoming more discerning when it comes to asset type and quality. There are clear indications that international capital is gravitating towards locations and sectors that offer income stability and reliable growth prospects, despite the complexities brought about by trade tensions and potential changes in monetary policy.
While traditional assets continue to dominate real estate investment activity in the region, there has been an increase in alternative asset classes such as the living sector and data centres. The investment volume in the living sector nearly doubled year-on-year to US$4.9 billion in Q2 of 2025, while the data centre sector saw a 40.2% quarter-on-quarter growth, with a total investment volume of US$2.4 billion.
On the other hand, investments in the industrial sector saw a decline in both quarter-on-quarter and year-on-year terms. Knight Frank attributes this to the continued uncertainty over US trade policy.
Looking ahead, prolonged geopolitical and economic instability may dampen investor sentiment. However, Knight Frank believes that the expected improvement in US trade agreements and declining borrowing costs in the second half of the year could stimulate more investments throughout the region.