US leads second-quarter Asia-Pacific real estate deals with assets worth US$5 billion
Asia-Pacific real estate jumped 31 per cent year on year in the second quarter, as investors chased yields and stable growth in markets such as Australia, Singapore and Japan amid looming tariff challenges.
Mainland China, meanwhile, was weighed down by
an ongoing property crisis and mounting default risks.
Cross-border real estate investments in Asia-Pacific reached US$12.1 billion in the second quarter, a 50.1 per cent surge year on year and the highest level since the third quarter of 2022, according to a Knight Frank report on Thursday. US investors led the charge, pumping US$4.97 billion into the region, accounting for 41 per cent of the total.
'US investors have always been active in the Asia-Pacific region, which offers exposure to both emerging and mature markets, enabling a balance between potential and stability,' said Christine Li, head of research for Asia-Pacific at Knight Frank.
'Compared with the US and Europe, certain Asia-Pacific markets offer more attractive pricing and yields, especially in the office, [residential] and data centre sectors,' she said. The recent moves by many of the central banks in the region to lower interest rates – in contrast with the US Federal Reserve's move to hold rates steady – also helped to reduce borrowing costs and improve returns, she added.
Japan drew US$2.4 billion worth of overseas investment into its real estate sector. Photo: Shutterstock
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