APAC Real Estate Market Poised for Growth with Strong Investor Confidence and High-Value Deals in 2025

December 2, 2025
APAC Real Estate Market Poised for Growth with Strong Investor Confidence and High-Value Deals in 2025
  • APAC is in an early-growth phase with the Fair Value Index at 62.5 in Q3 2025 and 46% of markets underpriced, up from 18% two years earlier, signaling meaningful value opportunities especially in Australia and Singapore, while Japan remains attractive for industrial and office due to low vacancy and stable macro conditions; growth markets like India and Southeast Asia are drawing cross-border capital for industrial assets.

  • APAC TIME score stands at 3.1, underscoring early growth with rising investor confidence, increasing transaction activity, and debt markets supporting competition for prime assets.

  • Capital raising is accelerating across core, core-plus, and value-add strategies, with growing interest in alternatives such as data centers, living spaces, and self-storage, and a particular focus on the living sector in Australia, Japan, and South Korea.

  • Logistics and industrial assets are leading the APAC recovery through rental growth and yield compression, while office has stabilized after repricing and retail is nearing an inflection point outside Greater China; living assets are drawing notable interest in Australia, Japan and South Korea.

  • Notable 2025 deals signal momentum, including the USD 925 million Causeway Bay premium office sale in Hong Kong and the USD 1.47 billion Pangyo Tech One Tower sale in South Korea, pointing to renewed confidence heading into 2026.

  • Overall, APAC is moving toward stabilization with growing cross-border capital and sustained demand in logistics, living, and data-centric real estate assets, supported by improving macro conditions.

  • Note that APAC TIME and FVI are partial measures; regional insights are available in the APAC and EMEA Investment Atlas reports for a fuller picture.

  • EMEA parallels show a debt-driven recovery with a TIME score near 3.2 and a broad underpricing across markets, highlighting logistics and hospitality as attractive sectors.

  • The APAC market has entered a stabilisation phase in 2025, offering attractive entry points across multiple sectors and geographies as resilience and momentum recover post downturns.

Summary based on 2 sources


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