Asia Pacific commercial real estate investment volumes rose 15% year-on-year to $31.2 billion in the second quarter of 2025 despite global trade tariff uncertainty, although activity fell 19% compared to the previous quarter, CBRE said.
Retail investments led the growth, increasing 58% quarter-on-quarter, while Mainland China recorded the highest overall investment volume in the region, followed by Japan, according to CBRE’s Asia Pacific Trends Q2 2025 report.
“Momentum in investment activity is building in Asia Pacific, with debt costs continuing to fall and positive carry returning to most markets,” said Greg Hyland, Head of Capital Markets, Asia Pacific at CBRE. “Activity is expected to remain strong in the second half of the year.”
Ada Choi, Head of Research, Asia Pacific at CBRE, noted that “despite occupier sentiment turning cautious in Q2 amid macroeconomic uncertainty, demand for CBD office space and prime retail locations across Asia Pacific remains robust.”
India saw resilient investment activity led by developers, international private equity firms, and domestic capital. In Hong Kong, transactions were dominated by end-users and domestic buyers, while Taiwan saw industrial assets make up about 90% of investment volume.
Office demand remained firm across Asia Pacific CBDs, while retail leasing was buoyed by strong demand in Vietnam, Singapore, and India. Industrial and logistics sectors showed resilience in Singapore, Japan, and Australia, despite trade policy-related disruptions.
Hotel investments also remained robust, supported by visitor arrivals and stable operating performance, with CBRE expecting strong investment momentum to continue into the second half of 2025.
Business News Asia
