Record-Breaking $63.8 Billion in Asia-Pacific Real Estate Investment Driven by Commercial Deals
The Asia-Pacific property market has surged, with commercial real estate investments hitting an all-time high of $63.8 billion in Q3 2025, according to Knight Frank’s Capital Markets Insights report.
Real EstateAsiapacificCommercial PropertiesInvestmentKnight FrankReal EstateOct 29, 2025
Year-to-date investment volumes have already reached 80 per cent of 2024’s full-year total, and Knight Frank expects the Asia-Pacific market to surpass $195 billion in 2025, up 10 per cent year-on-year.
Commercial properties—covering offices, retail, hospitality, and co-working spaces—were the clear star, capturing 79 per cent of total investments, or about USD 1.4 billion. That’s a 104 per cent jump YoY, highlighting a strong rebound in confidence and transaction activity.
“Q3 2025’s record transaction volume marks a genuine market revival in Asia-Pacific,” said Christine Li, Head of Research, Asia-Pacific, Knight Frank. “Investors are shifting toward active asset management and income-growth strategies, targeting defensive sectors such as living and logistics.”
The residential segment attracted $191.7 million (11 per cent share), down 49 per cent quarter-on-quarter but up 6 per cent YoY. The industrial and warehousing sector, at $85.8 million, surged 168 per cent QoQ thanks to fresh interest in logistics assets.
Cross-border investment into Asia-Pacific rose 72 per cent quarter on quarter and 29 per cent YoY to $17.8 billion, led by Australia, which attracted $5 billion, mainly into living and industrial assets.
Japan followed with $3.5 billion, focused on office and multifamily assets, while South Korea drew $2.3 billion, largely in industrial and office properties.
“Constrained future supply of institutional-grade assets and stabilising prices are encouraging cross-border participation,” said Dan Dixon, Head of Capital Markets, Asia-Pacific, Knight Frank. “Deal flow is broad-based across offices, industrial, and living sectors—showing structural, not opportunistic, demand.”
South Korea emerged as the region’s top-performing market with $14.3 billion in transactions—up 93.6 per cent YoY—and dominated by office deals, which comprised 70.9 per cent of its total.
Major transactions included the Pangyo Tech One Tower sale for $1.42 billion, the highest-ever office transaction in South Korean history. Global investors such as BentallGreenOak and Aberdeen were among key buyers in Seoul’s CBD.
The Chinese mainland followed closely with USD 13.5 billion (+29.9 per cent YoY), fuelled by data-centre transactions that made up nearly one-third of total volume—most notably Bain Capital’s $3.9 billion divestment of WinTriX DC Group’s Chinese operations to Guangdong Hec Technology.
Australia, with $9.5 billion (+87.8 per cent YoY), benefitted from pricing stabilisation and renewed investor appetite in cities beyond Sydney, while Singapore recorded USD 3.8 billion (+28.6 per cent YoY) on the back of large transactions such as Lendlease REIT’s $356 million sale of Jem’s office component to Keppel Land.
Office assets: $23.7 billion (+64 per cent YoY) — Rental growth and limited new supply in major CBDs are pushing values higher.
Industrial: $10.7 billion (-3.7 per cent YoY) — Muted overall, but South Korea bucked the trend (+38.6 per cent).
Hotels: $6.2 billion (+67.7 per cent YoY) — Tourism rebound lifted demand.
Retail: $7.7 billion (-13.4 per cent YoY) — Investor caution persists amid global trade uncertainty.
Knight Frank expects investment momentum to stay firm in Q4 2025, supported by monetary policy clarity and improved liquidity. Despite lingering US-China trade tensions, stabilising cap rates and narrowing yield spreads are boosting investor conviction.
“Japan stands out as a policy-anchored beneficiary,” said Li. “With steady rental fundamentals and strong demand for multifamily and logistics assets, Japan’s real estate offers a rare mix of yield stability and inflation hedging.”
Frequently Asked Questions
What is the total real estate investment in Asia-Pacific in Q3 2025?
The total real estate investment in Asia-Pacific in Q3 2025 was $63.8 billion.
Which sector dominated the real estate investments in Q3 2025?
Commercial properties, including offices, retail, hospitality, and co-working spaces, dominated the real estate investments in Q3 2025, capturing 79 per cent of total investments.
How much did cross-border investment into Asia-Pacific increase in Q3 2025?
Cross-border investment into Asia-Pacific rose 72 per cent quarter on quarter and 29 per cent YoY to $17.8 billion in Q3 2025.
Which country attracted the most cross-border investment in Q3 2025?
Australia attracted the most cross-border investment in Q3 2025, with $5 billion, mainly into living and industrial assets.
What is the expected investment in the Asia-Pacific real estate market for 2025?
Knight Frank expects the Asia-Pacific market to surpass $195 billion in 2025, up 10 per cent year-on-year.
Related News Articles
Maharera Hearings: Homebuyers Fed Up with Long Delays in Second Hearings
Pune homebuyers complain about significant delays in second MahaRERA hearings, stretching beyond a year, questioning the authority's efficacy in delivering timely justice.
Navneet Rana to Skip Maharashtra Assembly Polls, Eyes Rajya Sabha Seat
Navneet Rana, a prominent political figure in Maharashtra, has announced that he will not contest in the upcoming Maharashtra Assembly elections. Instead, he is setting his sights on a membership in the Rajya Sabha. This decision comes after a series of s
NHSMRE Organizes Second Edition of its Prestigious Management and Real Estate Conference
The Niranjan Hiranandani School of Management & Real Estate (NHSMRE) under the auspices of HSNC University, Mumbai, successfully organized the second edition of its renowned conference, bringing together industry leaders, academics, and students.
Akshay Kumar Offloads Luxurious Borivali East Apartment for Rs 4.35 Crore; Details Inside
Bollywood megastar Akshay Kumar has made headlines once again, this time for a major real estate transaction. He has reportedly sold his opulent apartment in Borivali East for a staggering Rs 4.35 crore. The deal highlights the ongoing allure of Mumbai's
Journalist Attacked by Sand Mafia in Maharashtra's Ratnagiri
A woman journalist was brutally attacked by members of the sand mafia in Ratnagiri, Maharashtra, on Sunday. The incident has sparked outrage and led to a police investigation. The attack highlights the ongoing issues with illegal sand mining and the danger faced by journalists reporting on such activities.
Casagrand Unveils Luxury Residential Project in West Chennai
Casagrand, a prominent real estate developer, has announced the launch of its latest residential project, Casagrand Highclere, in West Chennai's Kundrathur. Spanning a vast area, this project promises to offer a luxurious living experience with state-of-the-art amenities.