APAC drives global cross-border real estate capital investment

Four of the top 10 capital sources in H1 2024 were from APAC.

New research from Colliers has found the Asia Pacific region was home to four of the top 10 global cross-border capital sources in the first half of 2024 – Singapore, Hong Kong, Japan and China. 

When it came to global capital targeting standing assets, Japan and China were in the top five destinations globally with Australia also representing the APAC region within the top 10, according to Colliers’ Global Capital Flows Report | H1 2024. 

The office sector was the most sought after in terms of investment activity in APAC in the first half of 2024, followed by industrial.  

“Improving fundamentals are set to create new investment opportunities in the months ahead, with global rate cuts signaling positivity for real estate markets,” Chris Pilgrim, Colliers’ Managing Director of Global Capital Markets, Asia Pacific, said. “While 2024’s market gains will be moderate, 2025 will see a much greater spread to yields emerge, opening up more of the market to buyers and vendors as valuations adjust. 

“Most major global economies have put the idea of recession behind them, with GDP rates improving year-on-year. Importantly, GDP growth  forecasts for developed economies show a general improvement in 2025 and again in 2026, no doubt supported by subsequent rate cuts. For major developing economies such as China and India, the growth picture remains very robust, but points to a gradual normalisation of GDP growth rates over the same period. 

“For global investors, the Asia Pacific region offers strong economic growth, attractive returns compared to more developed regions and an opportunity to diversify their investment portfolios within the region’s dynamic, varied and emerging markets. 

“APAC is a powerhouse of economic activity, offering diverse investment opportunities across traditional sectors such as residential, commercial and industrial and logistics as well as growing specialized sectors like data centers and cold storage.”  

To find out more, download the full report here.