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Asia-Pacific Investment Hits Record $63.8 Billion in Q3 2025: Knight Frank
Real Estate

Asia-Pacific Investment Hits Record $63.8 Billion in Q3 2025: Knight Frank

Asia-Pacific commercial real estate investment volumes surged to a record $63.8 billion in Q3 2025, marking a 56.8 per cent year-on-year increase and nearly doubling the activity seen in the previous quarter, according to Knight Frank’s Q3 2025 Capital Markets Insights report.

The record growth was propelled by major entity-level transactions and the closure of deals previously delayed by prolonged due diligence processes.

Christine Li, Head of Research, Asia-Pacific at Knight Frank, noted, “Q3 2025’s record volume marks a genuine market revival, supported by policy clarity and capital rate stabilisation. Investors are shifting focus from cap rate compression to asset management and income growth, directing capital into resilient sectors such as living and logistics.”

Year-to-date investment activity has already reached 80 per cent of 2024’s full-year total, with Asia-Pacific expected to surpass $195 billion in investment volumes by year-end, representing a 10 per cent annual increase.

Cross-Border Capital Flows Strengthen — Australia Leads the Region

Cross-border investment reached $17.8 billion in Q3 2025, up 72.1 per cent from Q2 and 28.6 per cent year-on-year.

  • Australia led with $5.0 billion, primarily in living and industrial assets.
  • Japan followed with $3.5 billion, focused on office and multi-family sectors.
  • South Korea secured $2.3 billion, largely in industrial and office properties.
Dan Dixon, Head of Capital Markets, Asia-Pacific at Knight Frank, said,

“Cross-border investors are showing renewed confidence in Asia-Pacific’s fundamentals. With limited future supply and stabilising prices, we’re seeing strong, broad-based demand across offices, logistics, and living sectors.”

Asia-Pacific commercial real estate investment volumes surged to a record $63.8 billion in Q3 2025, marking a 56.8 per cent year-on-year increase and nearly doubling the activity seen in the previous quarter, according to Knight Frank’s Q3 2025 Capital Markets Insights report.The record growth was propelled by major entity-level transactions and the closure of deals previously delayed by prolonged due diligence processes.Christine Li, Head of Research, Asia-Pacific at Knight Frank, noted, “Q3 2025’s record volume marks a genuine market revival, supported by policy clarity and capital rate stabilisation. Investors are shifting focus from cap rate compression to asset management and income growth, directing capital into resilient sectors such as living and logistics.”Year-to-date investment activity has already reached 80 per cent of 2024’s full-year total, with Asia-Pacific expected to surpass $195 billion in investment volumes by year-end, representing a 10 per cent annual increase.Cross-Border Capital Flows Strengthen — Australia Leads the RegionCross-border investment reached $17.8 billion in Q3 2025, up 72.1 per cent from Q2 and 28.6 per cent year-on-year.Australia led with $5.0 billion, primarily in living and industrial assets.Japan followed with $3.5 billion, focused on office and multi-family sectors.South Korea secured $2.3 billion, largely in industrial and office properties.Dan Dixon, Head of Capital Markets, Asia-Pacific at Knight Frank, said,“Cross-border investors are showing renewed confidence in Asia-Pacific’s fundamentals. With limited future supply and stabilising prices, we’re seeing strong, broad-based demand across offices, logistics, and living sectors.”

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