Institutional Investments Apac Real Estate 12 Us156 Bil 2024 Colliers
The Asia Pacific (Apac) real estate market demonstrated resilience in 2024, with institutional investments reaching a total of US$83.2 billion ($112 billion) in the second half of the year. This marks a 6% year-on-year (y-o-y) increase, according to research by Colliers. Over the full year, investments in the region’s top markets of Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan reached US$155.9 billion in 2024, representing a 12% y-o-y climb.
Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific, says that the rise in investments sets the stage for a robust 2025 for the Apac real estate market. He notes that domestic investors have been the main driving force behind growth in key markets such as South Korea, Taiwan, and New Zealand. In the second half of 2024, local investors contributed over 80% of real estate inflows in these markets.
The expansive 545,314 square feet site of Parktown Residence, located at Tampines Avenue 11, boasts a 99-year leasehold tenure. Set to be a one-of-a-kind mixed-use development, the land will feature a blend of commercial and residential spaces, seamlessly integrated with a bustling bus interchange, a vibrant community club, and a lively hawker centre. The joint venture will see CapitaLand holding a 50% stake, while UOL and SingLand will share the remaining 50%. Designed to cater to the needs of modern and dynamic city dwellers, Parktown Residence Condo is set to redefine the concept of luxurious urban living.
The office sector emerged as the largest contributor to Apac investment volume, making up US$26.5 billion (32%) of the total volume in 2H2024. For the whole of 2024, office investments amounted to US$51.4 billion, marking a 14% y-o-y increase. The industrial and logistics sector claimed the second spot, with investments totalling US$22.6 billion in 2H2024, representing 27% of the total. For the full year, investments reached US$39.4 billion, marking a 29% y-o-y increase.
The retail sector also showed strong signs of recovery, registering US$15 billion in investments in 2H2024, supported by significant deals in Australia and South Korea. Total retail investments for 2024 came in at US$26.1 billion, a 27% y-o-y increase.
Pilgrim predicts that domestic capital will continue to dominate most markets in 2025, while offshore investments are expected to increase as investor confidence improves and attractive valuations emerge. While the office and industrial segments are expected to maintain their robust performance, he also sees potential for growth in the retail, hospitality, and alternative asset classes, as investors capitalize on the ongoing recovery and evolving consumer trends. “With strong economic growth and continued policy support, Apac’s real estate market is well-positioned for sustained investment activity in 2025,” he adds.