Despite economic headwinds dampening global capital markets, real estate investments in the Asia Pacific (Apac) region continue to demonstrate resilience, says Colliers. In its Global Capital Flows September 2025 report, the real estate services and investment management firm notes that investment activity in Apac charted a slight increase of 5% as of 1H2025 compared to the same period last year.

The increase comes as Apac markets continue to generate land sales and new developments.  According to the report, Apac dominated the top ten global rankings for cross-border investments in land and development sites, with seven countries from the region making the list. Australia led the pack, drawing US$1.022 billion ($1.28 billion) in investments, followed by Singapore (US$981 million), India (US$808 million), Malaysia (US$606 million), Hong Kong (US$500 million) and Japan (US$404 million).

Overall, Australia and Japan were the only two Apac countries to rank among the top ten global capital destinations across all asset classes. However, Singapore, Japan and Hong Kong emerged among the top ten cross-border capital sources worldwide, underscoring Apac’s growing role in outbound investment, says Colliers.

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Singapore holds fourth place globally, contributing over US$7.9 billion in cross-border capital in 1H2025. The bulk was invested in industrial assets (US$2.9 billion), followed by office (US$2.41 billion) and retail (US$1.45 billion) assets. “Singapore continues to demonstrate its strength as a capital source and investment destination,” says Bastiaan VB, Colliers’ managing director for Singapore.

In terms of sector, the multifamily segment remains the most active sector globally as of the end of 2Q2025, predominantly driven by investments in North America, according to Colliers. The industrial sector also retained its spot as the second most active investment sector, both globally and across regions.

Colliers’ report highlights a pick up in office investment activity, particularly in the Apac and the Europe, Middle East, and Africa (EMEA) regions, where the segment recaptured its top position based on investments on a rolling 24-month basis. Meanwhile, the retail and hospitality sectors maintained similar levels of activity over the past two quarters.

Lucy Mallick, international capital lead at Colliers, believes sectoral shifts and fundraising momentum driven by evolving investor priorities are helping to underpin Apac’s resilience within otherwise subdued global capital markets. Looking ahead, she anticipates capital flows to accelerate in late 2025 as inflation subsides and interest rates decline.