Tokyo, Sydney and Singapore Top Targets for Asia Pacific Cross-Border Real Estate Investment in 2025 Amid Improved Sentiment: CBRE Survey

Asia Pacific – January 14, 2025 – Tokyo is the top target for cross-border real estate investment in Asia Pacific for the sixth consecutive year, with Osaka gaining popularity due to low debt costs, stable pricing, and diverse opportunities in Japan, according to CBRE’s 2025 Asia Pacific Investor Intentions Survey.

Sydney and Singapore are top investment destinations, following closely Tokyo. Investors are attracted to Sydney because of the higher returns they can get there, while Singapore offers a stable and reliable market. India is attracting growing interest from investors looking to expand their real estate portfolios in the world’s fastest-growing economy, with Mumbai and New Delhi ranking among the top 10 target markets in the region.

Overall investment sentiment in Asia Pacific has improved, with net buying intention rising from 5% in 2024 to 13% in 2025. Key drivers of this increase include falling debt costs and asset repricing. For example, Singaporean and Hong Kong SAR investors with cross-regional mandates have expressed net buying intentions across the board. Large Australian and Korean landlords have also demonstrated the most significant increase in their net buying intentions, driven by attractive pricing opportunities in their domestic markets.

“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,” said Greg Hyland, Head of Capital Markets, Asia Pacific for CBRE. “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.”

Industrial properties remain the most sought-after asset class for investors in Asia Pacific, particularly among core investors. Meanwhile, 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.

“The logistics and office sectors continue to dominate investor preferences for 2025,” said Ada Choi, Head of Research, Asia Pacific for CBRE. “Investors are maintaining their focus on logistics assets in Japan and Australia, with emerging interest in India. At the same time, the office sector is experiencing increased interest after three years of declining investor preference, particularly in markets like Australia, Singapore, and Korea, where leasing activity has stabilised or is showing growth.”

Key Survey Highlights

The survey, conducted in November and December 2024, revealed the following insights:

• Over 40% of investors identify geopolitical concerns as the biggest challenge for real estate investment, citing uncertainties related to potential tariffs and U.S. fiscal policies.
• Healthcare-related properties, such as life sciences and medical offices, are most preferred alternative asset type for investment, followed by data centres, student accommodation and retirement living.
• Approximately 56% of investors plan to prioritise acquiring or developing green buildings as their top sustainability initiative, surpassing retrofitting existing buildings.
• 35% of investors aim to increase renewable energy generation, particularly in the industrial and living sectors.

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Notes to editors

CBRE’s survey polled more than 460 Asia Pacific-based investors in November and December 2024 across a range of investor types from institutions such as real estate fund, developer/owner/operator, REITs, insurance company, private equity fund, and pension fund to high net worth individual / private investor.

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