Savills Records Three-Year High in Asia Pacific Investment

Real estate investment activity in the Asia Pacific region reached levels not seen in years at the end of 2025.

Transaction volumes in the fourth quarter across the Asia Pacific market increased 8.7 percent year over year, the highest level since 2022, Real Estate Asia reported, citing data released by Savills.

The recovery effectively offset a mid-year slowdown that had been exacerbated by trade tensions and pressures related to United States tariffs. Market activity picked up steam as capital costs became steady and pricing adjusted along with them.

In the second half of the year, office investment activity rose in markets across the region including Australia, South Korea, Hong Kong and Singapore. Industrial transactions also showed marked improvement as global investors got a better picture of the long-term impacts of international trade policies. That clarity has seemingly encouraged a return to core sectors that previously faced hesitation from institutional capital.

Australia emerged as a primary driver of regional growth, with fourth-quarter investment across the office, industrial and retail sectors totaling approximately AU$13.1 billion (nearly $9.1 billion). That represents a 66 percent surge compared to the same period in the previous year. The Australian office sector was especially robust, with volumes jumping 89 percent as the quarter progressed. That performance was largely underpinned by several high-profile transactions concentrated in the Sydney metropolitan area, according to Real Estate Asia.

South Korea reported a record-breaking year, with office investment reaching KRW21.1 trillion (almost $14.1 billion) in 2025. Logistics activity in the country remained strong, supported by significant foreign-led acquisitions such as the Brookfield Cheongna Logistics Center.

Singapore also ended the year with a strong performance as fourth-quarter investment sales rose 44.4 percent year over year to almost S$11 billion (roughly $8.6 billion). The residential sector remained a major component of activity while commercial investment climbed to nearly S$3.5 billion (about $2.7 billion). Industrial investment in Singapore nearly doubled on a quarterly basis to reach S$2.1 billion ($1.6 billion).

In China, investment strategies shifted toward income-generating assets, including rental housing and specific retail segments. Hong Kong witnessed a transition toward conviction-driven purchasing, particularly within the residential space. Residential deals in Hong Kong reached 62,800 for the year, with buyers from Mainland China accounting for 13,800 of those transactions. That represents the highest volume of participation from Mainland investors recorded since 1995.

India, meanwhile, continues to attract substantial international interest, securing $6.7 billion in private equity real estate inflows during 2025. That 59 percent year-over-year increase was primarily directed toward the office, data center and residential sectors.

— Chris Malone Méndez