Asia Pacific Capital Tracker Autumn 2025

• APAC Transaction Volumes: Totaled USD 39.5 billion in Q3 2025, marking a 26% increase over the previous quarter and up 2% compared to the same period last year. Year-to-date activity reached USD 106.6 billion, representing a 11% year-on-year rise as regional capital markets continued to work through a fragile recovery phase.
• Cross Border Investment Growth: Asia Pacific attracted USD 12.0 billion in Q3 2025 (YTD: USD 27.3 billion), marking 60% YoY growth (YTD: 88%)
• Re-pricing: Major APAC markets yield trends show signs of stabilization and recovery across commercial real estate sectors.
• Tariffs: APAC growth is expected to moderate due to US tariff pressures and supply chain shifts, with varying impacts across countries—Singapore faces export vulnerabilities; Korea and Japan adapt through domestic focus; China broadens retail presence to SEA.
• Alternative lenders: Interest rate volatility dominates APAC lender concerns driving expectations for early borrower refinancing to secure favorable rates, while the lending market evolves with expanding private credit competition against traditional banks and strong sector focus on data centers and multifamily assets.
• Private wealth: Private wealth, dominated by Australia and Japan, targeted office assets.

APAC investment volumes totaled USD 39.5 billion in Q3 2025, marking a 26% increase over the previous quarter and up 2% compared to the same period last year. Year-to-date activity reached USD 106.6 billion, representing a 11% year-on-year rise as regional capital markets continued to work through a fragile recovery phase.

Japan led the region in Q3 with USD 10.3 billion in transactions, up 23% year-on-year, largely driven by a surge in multifamily investments to levels not seen since Q1 2020. The office market remained active and foreign investors were net sellers over the period. South Korea recorded USD 7.9 billion in third-quarter volumes. International capital focused on value-add opportunities in industrial and Seoul’s office sector. Australia reported USD 4.5 billion in Q3, declining 4% year-on-year. Domestic institutional investors refocused their attention on the hotels and retail segments, while interest in logistics remained strong albeit increasingly selective due to market dynamics including higher supply and incentives.

Singapore’s investment scene was buoyed by a 21% uptick year-on-year, reaching USD 5.4 billion for the quarter. The living sector dominated headlines, sparked by Centurion’s IPO and the acquisition of worker dormitory properties, while the co-living trend gathered momentum. Office volumes benefited from high-profile deals.

In China, Q3 volumes fell to USD 4.1 billion, a 34% decline from the previous year. Insurers, state-owned enterprises, and private wealth investors were key sources of capital. Hong Kong continued to face persistent challenges, with investment activity contracting 10% to just USD 1.2 billion. Transactions largely revolved around strata office and retail properties, underscoring the subdued market sentiment. India, in contrast, saw its Q3 figures rise to USD 2.6 billion—a 511% jump from last year. The country’s thriving office sector drew global investors, REITs, and local funds eager to capitalize on sound fundamentals.

Overall, Q3 2025 in APAC reflected cautious optimism, with investors selectively targeting resilient sectors amid ongoing recovery dynamics across the region.