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Apac investment sentiment up in 2025; Singapore among top destinations

/ EdgeProp Singapore |

January 15, 2025 2:50 PM SGT

According to a survey by CBRE, overall investment sentiment in Apac has improved (Picture: Samuel Isaac Chua/The Edge Singapore)

Singapore remains among the top investment destinations for real estate in Asia Pacific (Apac), according to CBRE’s latest Asia Pacific Investor Intentions Survey. The city was ranked the third-highest preferred market for cross-border real estate investment, which CBRE attributes to its stable and reliable market.

Tokyo was ranked the top destination for the sixth consecutive year on the back of Japan’s low cost of debt and stable income streams. Sydney came in second, with investors attracted to its higher returns. Other destinations that have gained popularity include Osaka and Indian cities such as Mumbai and New Delhi.

According to the survey, overall investment sentiment in Apac has improved, with net buying intention rising from 5% in 2025 to 13% in 2025. The boost is supported by falling debt costs and asset repricing, says CBRE.

“Even though expectations for significant rate cuts have tempered due to persistent inflation, we still expect investment activity to accelerate in 2025 as they start to take effect across the region,” says Greg Hyland, CBRE’s head of capital markets for Apac.

Hyland adds: “REITs, institutional investors, and funds are driving this momentum, with many focusing on core-plus and value-add opportunities to achieve higher returns. In some cases, this could be acquiring core assets that have undergone repricing.”

CBRE’s survey found that industrial properties remain the most sought-after asset class for investors in Apac. Nonetheless, office and data centre assets are seeing increased interest in 2025, with investors targeting core-plus and value-add properties in the office sector and opportunistic pricing for data centres, particularly in Southeast Asia.

A separate survey published by the Asian Association for Investors in Non-listed Real Estate Vehicles (Anrev) on Jan 15 found that real estate investors in Apac continue to favour value-added strategies.

Anrev’s annual Investment Intentions Survey, published in collaboration with the European Association for Investors in Non-listed Real Estate Vehicles (Inrev) and the Pension Real Estate Association (Prea), polls investors and fund managers to ascertain expected trends and investment intentions in the real estate industry.

The 2025 edition of the survey polled 81 participants across 21 countries from organisations representing over US$1.036 trillion ($1.42 trillion) in assets under management in real estate.

In the survey, 62% of Apac respondents identified value-added investments as offering the best risk-adjustment prospects for Apac investors in 2025. This is the second consecutive year the strategy has been chosen as the most favoured investment style.

The residential and industrial sectors stood out as Apac investors’ preferred investment targets, with 91% and 83% of respondents favouring these sectors respectively. The office sector came in third place with 70%.

City and sector investment preferences continue to be dominated by Australia and Japan. Tokyo residential, Sydney residential, and Sydney industrial tied for top position, with each favoured by 70% of respondents as a preferred city and sector combination for Apac investment in 2025.

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