_0.jpg?gZ.WkRZZhI7LY91WMWt9abOTNAOktUu8&itok=4PY0qBVT "Data compiled by JLL indicates that Apac commercial real estate investments totalled US$36.3 billion ($47.7 billion) last quarter, rising 20% y-o-y (Picture: Samuel Isaac Chua/The Edge Singapore)")
Commercial real estate investment in Asia Pacific (Apac) has hit a new first-quarter high since the 2022 rate hike cycle, according to research by real estate consulting firm JLL. Data compiled by the company indicates that Apac commercial investments totalled US$36.3 billion ($47.7 billion) last quarter, rising 20% y-o-y.
This is the sixth consecutive quarter of y-o-y growth, says JLL. “The continued growth in Asia Pacific commercial real estate investment is a testament to the region’s strong fundamentals and attractiveness to global capital,” adds Stuart Crow, CEO, Asia Pacific Capital Markets, JLL.
The investment volume in 1Q2025 was supported by US$8.6 billion in cross-border investments. This represents a growth of 152% y-o-y and the highest 1Q Apac cross-border volumes since 2019, according to JLL.
Japan was the highest contributor to 1Q2025 investment volumes at US$13.7 billion, reflecting a spike of 20% y-o-y. South Korea came in second with US$6.8 billion in investments (up 58% y-o-y), followed by Australia at US$3.9 billion (up 30% y-o-y). Meanwhile, Singapore posted US$2.2 billion in 1Q2025 commercial investments, rising 16% y-o-y.
Looking ahead, Crow views that tariff-induced market volatility may result in a temporary pause on large deal activity. However, he expects investors with a long-term horizon to continue investing in Apac commercial real estate, which remains relatively insulated from short-term fluctuations. “We continue to be of the opinion that the Apac region will be a net beneficiary of cross-border capital flows,” he says.
Still, Apac countries are expected to be detrimentally impacted by US tariffs, with US-export reliant markets such as Vietnam, Malaysia and South Korea expected to be hit the hardest. Amid lower growth expectations and recession fears, leasing and investment across all commercial real estate sectors could be affected, says JLL.
Pamela Ambler, JLL’s head of investor intelligence for Apac, notes that US-reliant markets in Asia may face depreciation pressures ahead due to the weakening of the US dollar brought about by a pessimistic US growth outlook. Ambler adds that such pressures could have a knock-on effect in the real estate market, making assets cheaper for regional and global investors investing with US dollars.
