%20(1).jpg?.L2dRoYiSklO3.l4g1G21NdXr3.dpfjN&itok=xtd4Pipc "Institutional investments in Asia Pacific real estate totalled US$83.2 billion in 2H2024, rising 6% y-o-y (Picture: Samuel Isaac Chua/The Edge Singapore)")
Institutional investments in Asia Pacific (Apac) real estate totalled US$83.2 billion ($112 billion) in 2H2024, rising 6% y-o-y, according to research by Colliers. This brings full-year investments to US$155.9 billion in 2024, climbing 12% y-o-y. The figures cover the region’s top nine markets of Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.
The rise in investments demonstrates the resilience of the Apac real estate market and sets the stage for a robust 2025, says Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific.
Pilgrim adds that domestic investors have continued to drive growth in key markets such as South Korea, Taiwan and New Zealand. In 2H2024, local investors contributed over 80% of real estate inflows in these markets.
The office sector was the largest contributor to Apac investment volume, making up US$26.5 billion (32%) of 2H2024 total volume. For the whole of 2024, office investments came in at US$51.4 billion, up 14% y-o-y.
The industrial and logistics sector was the second biggest contributor, raking in US$22.6 billion in investments in 2H2024, or 27% of the total. This brings investments in the industry to US$39.4 billion for the whole of 2024, rising 29% y-o-y.
The retail sector saw a significant rebound, registering US$15 billion in investments in 2H2024, underpinned by substantial deals in Australia and South Korea. Total retail investments for 2024 came in at US$26.1 billion, up 27% y-o-y.
Pilgrim believes that domestic capital will continue to dominate most markets in 2025. At the same time, offshore investments are expected to increase over the year, led by improving investor confidence and attractive valuations.
While investments into the office and industrial segments are predicted to stay robust, he believes retail, hospitality and alternative asset classes are also poised to gain traction as investors capitalise on recovery momentum and evolving consumer trends. “With economic growth remaining buoyant and continued policy support, Apac’s real estate market is poised for sustained investment activity in 2025,” he adds.
