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Asia Pacific Investment Trends Q1 2025

April 16, 2025 5 Minute Read

Investment sentiment in Australia has continued to improve after a strong finish to 2024. Investors are especially keen on office and retail opportunities, where pricing has reached, or is about to, reach a consensus bottom, and income growth forecasts are solid. More opportunities to invest at scale will arise in 2025, especially in the form of joint partnerships with local and international investors. These deals will involve both direct asset transactions and operating company (OpCo) opportunities.
In Japan, commercial real estate investment activity ended 2024 on a strong note, with momentum continuing into early 2025. While interest rates were hiked by a further 25bps in January, this indicates healthy economic growth and price inflation. Hotels remain a favoured sector given that inbound tourism continues to be robust on the back of the weak Japanese yen. Investor sentiment towards the office sector has also bounced back.
Domestic investors continued to drive the mainland China market in Q1 2025. Despite some deals completed by Hong Kong SAR-based capital, most foreign buyers are not adding to their China portfolios or considering disposals. Market participants perceive this period as an opportunity for asset allocation, as asset prices are adjusting and loan interest rates are favourable.

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