APAC real estate investment hits 3-year high in late 2025

Total investments rose 8.7% in Q4, the highest level since 2022.

Real estate investment across Asia Pacific rebounded sharply in late 2025, with fourth-quarter transaction volumes rising 8.7% year-on-year to the highest level since 2022, according to Savills.

Savills said the recovery followed a mid-year slowdown linked to US tariff pressures and trade tensions, with activity strengthening as capital costs stabilised and pricing adjusted. Office investment picked up in the second half across markets including Australia, South Korea, Hong Kong and Singapore, while industrial transactions also improved as investors gained clearer visibility on global trade impacts.

In Australia, fourth-quarter investment across office, industrial and retail sectors reached approximately AU$13.1 billion, up 30% quarter-on-quarter and 66% year-on-year. Office volumes surged 89% over the quarter, driven by major transactions in Sydney.

South Korea also recorded a standout year, with office investment hitting a record KRW21.1 trillion in 2025. Logistics activity was bolstered by foreign-led deals, including the acquisition of the Brookfield Cheongna Logistics Center.

Elsewhere, China saw investors focus on income-generating sectors such as rental housing and selective retail, while Hong Kong recorded a shift toward more conviction-driven buying. Residential transactions in Hong Kong reached 62,800 in 2025, with Mainland buyers accounting for 13,800 deals — the highest since 1995.

India attracted US$6.7 billion in private equity real estate inflows, up 59% year-on-year, led by office, data centres and residential sectors.

Singapore closed the year strongly, with Q4 investment sales rising 44.4% year-on-year to S$10.97 billion. Savills said the residential sector accounted for 40.3% of activity despite a quarterly decline in value, while commercial investment rose to S$3.45 billion, supported by major deals including acquisitions involving Keppel REIT and Lendlease Global Commercial REIT.

Industrial investment in Singapore nearly doubled quarter-on-quarter to S$2.13 billion, as REITs pursued opportunistic acquisitions to strengthen portfolios.

Neil Brookes, Head of Asia Pacific Capital Markets at Savills, said transaction activity was rebounding as investors focused on quality assets and income durability. Alan Cheong,  Savills Executive Director for Research and Consultancy, added that, barring a significant escalation in geopolitical risks, 2026 investment volumes are expected to remain in line with 2025 levels.