Institutional Investments Apac Real Estate 12 Us156 Bil 2024 Colliers

According to a recent study by Colliers, institutional investments in Asia Pacific (Apac) real estate reached US$83.2 billion ($112 billion) in the second half of 2024, a 6% increase from the previous year. This brings the total investments for the entire year to US$155.9 billion, representing a 12% year-on-year growth. The report covers the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.

The growth in investments is a strong indication of the resilience of the Apac real estate market and sets the stage for a promising 2025, according to Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He also notes that domestic investors played a significant role in driving growth in key markets such as South Korea, Taiwan and New Zealand, accounting for over 80% of real estate inflows in these countries during the second half of 2024.

The office sector was the top contributor to Apac investment volume in 2H2024, representing 32% of the total with a value of US$26.5 billion. The industrial and logistics sector came in second with US$22.6 billion, or 27% of the total investments. For the entire year, office investments reached US$51.4 billion, a 14% increase from the previous year, while industrial and logistics investments amounted to US$39.4 billion, a 29% year-on-year growth.

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Meanwhile, the retail sector experienced a significant rebound with a total of US$15 billion in investments in 2H2024, driven by major deals in Australia and South Korea. For the whole year, retail investments reached US$26.1 billion, a 27% increase from the previous year.

Pilgrim believes that domestic capital will continue to dominate most markets in 2025, but offshore investments are also expected to rise due to improving investor confidence and attractive valuations. He predicts that the office and industrial segments will continue to see strong investments, but there will also be an increase in investments in retail, hospitality and alternative asset classes as investors take advantage of the market’s recovery and the changing consumer trends. “With strong economic growth and policy support, the Apac real estate market is poised for sustained investment activity in 2025,” he adds.