For Immediate Release - Savills’ Asia Pacific Investment Quarterly highlights a sharp resurgence in regional real estate activity in Q4 2025, with transaction volumes up 8.7% year‑on‑year and the quarter recording the highest total since 2022.

Asia Pacific economies ended 2025 with stronger resilience than expected, navigating US tariff pressures and a maturing global AI‑electronics cycle. Office sales activity picked up in the second half in Australia, South Korea, Hong Kong and Singapore as yields stabilised. Industrial deal volume also improved later in the year as investors gained clearer visibility on the impact of US tariffs. 

Key market highlights for Q4 included the Australia market, Q4 investment across office, industrial and retail sectors totalled approximately AU$13.1 billion, up 30% from Q3 and 66% year-on-year. Office investment rose by 89% quarter-on-quarter, led by landmark Sydney transactions.  

In South Korea, the office market recorded KRW21.1 trillion in investment activity in 2025, setting a new annual record. Logistics investment also surged, supported by foreign led transactions including the KRW1.03 trillion acquisition of the Brookfield Cheongna Logistics Center.  

In China, investors focused on repositioning and income visibility, with capital gravitating toward rental housing and select retail formats amid a maturing development cycle. In Hong Kong, the market shifted from a fragile recovery to more conviction-led buying. Residential transactions totalled 62,800 in 2025, with 13,800 deals completed by Mainland buyers, the highest level since 1995. Non-residential investment also strengthened, led by office transactions.

Lastly, India attracted US$6.7 billion in private equity real estate inflows – a 59% year-on year increase – with office, data centres and residential sectors leading allocations.  

“Asia Pacific real estate transactions rose 8.7% in 2025, rebounding in Q4 after a mid-year slowdown from US tariffs and trade tensions to the highest levels since 2022,” said Neil Brookes, Executive Managing Director and Head of Asia Pacific Capital Markets at Savills.  

He added: “The recovery we are seeing is being led by investors with a clear focus on quality, income durability and pricing discipline. As capital costs stabilised, buyers became more willing to transact where fundamentals were strong, and repricing had created realistic entry points.” 

Singapore’s real estate investment market closed the fourth quarter on a strong footing, with total investment sales reaching S$10.97 billion.

The residential sector remained the largest contributor in Q4/2025 with 40.3% of total investment sales, though its transaction value fell 13.7% QoQ to S$4.42 billion.

 In Q4/2025, the commercial sector contributed S$3.45 billion in investment sales, up 31.1% from S$2.64 billion. These were bolstered by big ticket transactions which include Keppel REIT’s acquisition of a one-third interest in Marina Bay Financial Centre Tower 3 (S$1.45 billion), Elegant Group’s purchase of The Clementi Mall (S$809.0 million) and Lendlease Global Commercial REIT’s acquisition of 70% interest in PLQ Mall (S$619.5 million) collectively lifting overall investment activity in the commercial sector.

The industrial investment sales ranked third, accounting for 19.4% of total investment sales in Q4/2025, or in value terms, S$2.13 billion. This was nearly double the S$1.07 billion achieved in the preceding quarter.

Industrial REITs undertook opportunistic transactions to strengthen portfolio quality, optimise balance sheets, and position themselves for long-term growth.

Alan Cheong, Executive Director, Research and Consultancy, Savills Singapore commented: “Geopolitical risks are rising and unless it deteriorates significantly, 2026 investment sale volumes should match 2025 levels.”