SINGAPORE, January 29, 2026 – Asia-Pacific real estate investment climbed to US$201 billion in 2025, a 13.7% increase, according to Knight Frank’s latest Capital Markets Insights report. The figure met the firm’s projected 10% to 15% growth range, driven by stabilising interest rates and renewed capital inflows to high-quality assets.
While full-year volumes rose, fourth-quarter investment totaled US$56 billion, marking a 10% drop quarter-on-quarter and a 7.4% decline year-on-year, as investors became more selective following three robust quarters. Retail was the standout performer, with Q4 volumes up 109.5% from the previous quarter and nearly doubling compared to a year earlier.
Key transactions included Lendlease Global Commercial REIT’s US$476.2 million acquisition of a 70% stake in Singapore’s PLQ Mall and Dexus’s US$447 million purchase of a 25% share in Brisbane’s Westfield Chermside. Improving occupier demand and stable cash flows fueled appetite for prime retail assets, while secondary properties continued to attract limited interest.
Cross-border activity moderated to US$46.8 billion, down 19% from 2024, amid geopolitical uncertainties and currency volatility. Japan led inflows at US$16.2 billion, supported by tight prime office vacancy. Australia followed with US$12.4 billion, boosted by retail acquisitions, while South Korea’s US$6.3 billion intake was led by industrial and logistics assets.
Knight Frank expects regional investment to climb a further 5% to 10% in 2026, with returns driven by rental growth and demand-supply fundamentals rather than yield compression. Core markets such as Japan, Australia, Singapore, and South Korea are predicted to remain the focus for selective international capital.
