Asia Pacific Capital Tracker Q4 2024: Radical Optimism

Asia Pacific real estate investment concluded 2024 on a strong note, reaching USD 131.3 billion, a substantial 23% year-over-year increase. This robust growth reflects investor confidence across the region, with all major sectors, except living, contributing significantly.

Elevated rates and bond yields are driving investors toward value-add strategies, repositioning assets to enhance returns in a challenging market environment. Japan led the way with a 48% year-on-year surge, driven by robust demand for logistics and office assets. South Korea experienced a 31% increase in investment activity. Singapore witnessed a 60% jump, fueled by renewed interest in the recovering hospitality sector. Australia rose 35% year-on-year with an active office sector. India demonstrated significant growth of 55% year-on-year, with institutional investors actively targeting warehouse portfolios. While investment activity declined in China and Hong Kong, private wealth has emerged as a dominant force, particularly in the office sector.

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Looking ahead to 2025, several macro factors are set to influence the Asia Pacific real estate markets. These include the Federal Reserve's monetary policy moves, the effects of Trump-era tariffs, Bank of Japan’s monetary normalization, China's economic stimulus measures, and Australia's persistently high construction costs.

Furthermore, ESG considerations are becoming increasingly crucial. The upcoming ISSB reporting, with its focus on scope 3 emissions, will significantly impact listed companies in Asia Pacific.

Download our in-depth report to gain deeper insights into each market's performance, understand the key drivers and challenges facing the real estate market in 2025, and explore the opportunities that lie ahead.