Asia Pacific’s commercial real estate investment reached US$39.5b in the third quarter of 2025, marking a 2% increase from the previous year and a significant 26% rise from the previous quarter, according to JLL. Year-to-date, the investment totalled US$106.6b, up 11% compared to 2024, as markets adapt to changing interest rates and geopolitical challenges.
Hong Kong’s investment volumes stood at US$1.2b, a 10% year-over-year decline, yet consistent with 2024 averages. The office sector led with US$460m in transactions, driven by owner-occupiers. Retail followed with US$330m, as investors were drawn by high yields and stabilising sales. The industrial and logistics sector saw US$230m, highlighted by Uni-China Group’s US$95m acquisition of a Tsing Yi property.
Oscar Chan from JLL noted, “Hong Kong’s GDP grew by 3.1% in the second quarter, with consumer sentiment stabilising. Lower interest rates and government property acquisitions have bolstered investor confidence.”
India recorded a historic US$2.6b in Q3, a 511% year-over-year surge, driven by strong office fundamentals. Japan maintained its lead with US$10.3b, a 23% increase, supported by multifamily investments.
Stuart Crow of JLL remarked, “Asia Pacific’s real estate market shows resilience despite macroeconomic challenges. India’s growth and Japan’s momentum highlight the region’s potential.”
Cross-border investments reached US$12b, a 60% rise, with Japan and Korea attracting significant foreign capital. Private wealth investments grew 35% to US$6b, with Australia and Japan leading the way.
