Asia-Pacific Real Estate Investment Surges to Record $63.8 Billion in Q3 2025
Asia-Pacific commercial real estate investment volumes hit a record $63.8 billion in Q3 2025, a 56.8% increase from the same period last year, according to a report by Knight Frank.
Real EstateInvestmentAsiapacificKnight FrankMarket RevivalReal EstateOct 29, 2025
Additionally, the growth in activity nearly doubled the volumes recorded in Q2. This was driven by several major entity-level transactions and the completion of deals that had been delayed by extended due diligence periods, according to Knight Frank's 'Q3 2025 Capital Markets Insights'.
Year-to-date transaction volumes have already reached 80 per cent of 2024's full-year total, with Asia-Pacific investment expected to surpass $195 billion in 2025, representing a 10 per cent year-on-year (YoY) increase.
"Q3 2025’s record $63.8 billion transaction volume marks a genuine market revival in Asia-Pacific, driven by policy clarity and capital rate stabilisation," said Christine Li, Head of Research, Asia-Pacific, Knight Frank. Investors are shifting from cap rate compression strategies to external factors such as active asset management and income growth.
This renewed confidence is directing substantial capital into strategic and defensive sectors, such as the living sector and logistics, he added.
According to the report, cross-border investment into the region totalled $17.8 billion during the quarter, up 72.1 per cent from Q2 and 28.6 per cent year-on-year. Australia attracted the highest volume of cross-border capital at $5.0 billion, primarily directed to the living and industrial sectors.
Japan followed with $3.5 billion, concentrated in office and multi-family assets, while South Korea secured $2.3 billion, predominantly in industrial and office properties.
“Cross-border investors are increasingly confident in the fundamentals behind key Asia-Pacific markets. Constrained future supply, particularly for institutional-grade office and logistics assets, combined with stabilising prices, creates compelling investment opportunities,” said Dan Dixon, Head of Capital Markets, Asia-Pacific, Knight Frank.
South Korea led the region with $14.3 billion in transactions, up 93.6 per cent year-on-year, recording the highest growth rate across Asia-Pacific markets. Office assets accounted for 70.9 per cent of South Korea’s total volume, as sellers moved to divest ahead of potential CBD oversupply, while rental growth expectations remain positive.
Frequently Asked Questions
What was the total commercial real estate investment volume in Asia-Pacific in Q3 2025?
The total commercial real estate investment volume in Asia-Pacific in Q3 2025 reached $63.8 billion.
By what percentage did the investment volume increase compared to the same period last year?
The investment volume increased by 56.8 per cent compared to the same period last year.
Which sectors are attracting significant cross-border investments in Asia-Pacific?
The living sector and logistics are attracting significant cross-border investments in Asia-Pacific.
Which country received the highest volume of cross-border capital in Q3 2025?
Australia received the highest volume of cross-border capital in Q3 2025, with $5.0 billion.
What factors are driving the market revival in Asia-Pacific's real estate sector?
The market revival is driven by policy clarity, capital rate stabilisation, and a shift towards active asset management and income growth.
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