In the second half of 2024, institutional investments in Asia Pacific (Apac) real estate reached US$83.2 billion ($112 billion), marking a 6% increase year-on-year, according to research by Colliers. This brings the full-year investments to a total of US$155.9 billion, up 12% from the previous year. These numbers reflect the performance of the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
This growth in investments highlights the resilience of the Apac real estate market, setting the stage for a promising 2025, says Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He notes that domestic investors have been a driving force in key markets like South Korea, Taiwan, and New Zealand, accounting for over 80% of real estate inflows in the second half of 2024.
The office sector contributed the most to investment volume in Asia Pacific, accounting for US$26.5 billion (32%) in the second half of 2024. For the entire year, office investments reached US$51.4 billion, a 14% increase year-on-year. The industrial and logistics sector followed closely, recording US$22.6 billion in investments in the second half of 2024, or 27% of the total. This brings the full-year investments in this sector to US$39.4 billion, rising 29% from the previous year.
The retail sector also saw a significant rebound, with investments reaching US$15 billion in the second half of 2024, driven by major deals in Australia and South Korea. Total retail investments for the year amounted to US$26.1 billion, a 27% increase year-on-year.
Pilgrim projects that domestic capital will continue to dominate most markets in 2025, while offshore investments are expected to rise due to improving investor confidence and attractive valuations. He also believes that the office and industrial segments will continue to attract robust investment, while retail, hospitality, and alternative assets will gain traction as investors capitalize on recovery momentum and evolving consumer trends. “With economic growth remaining strong and continued policy support, Apac’s real estate market is poised for sustained investment activity in 2025,” he adds.