Savills: Tokyo, Sydney, and Singapore have become the main targets for cross-border real estate investments in the Asia-Pacific region this year.

Recently, CBRE released the "2025 Asia Pacific Cross-Border Real Estate Investor Intentions Report," where Tokyo has been the primary target for cross-border real estate investments in the Asia Pacific region for the sixth consecutive year. Osaka is also becoming increasingly popular due to Japan's low debt costs, stable prices, and diverse opportunities. Following Tokyo closely are Sydney and Singapore. Investors are attracted to Sydney because they can achieve higher returns there, while Singapore offers a stable and reliable market. India is attracting more and more investors' interest as they look to expand their real estate investment portfolios in the fastest-growing economy globally, with Mumbai and New Delhi among the top ten target markets in the region. CBRE points out that overall investment sentiment in the Asia Pacific region has improved, with a net purchase intention increasing from 5% in 2024 to 13% in 2025. The main drivers of this growth include decreasing debt costs and asset repricing. Greg Hyland, CBRE's Capital Markets Director in Asia Pacific, stated that despite expectations for a significant rate cut diminishing due to persistent inflation, it is still expected that investment activity will accelerate in 2025 as rate cuts take effect across the region. Real estate investment trusts, institutional investors, and funds are driving this trend, with many institutions focusing on core value-added and opportunistic opportunities to achieve higher returns. In some cases, this may involve acquiring core assets that have been repriced. Industrial real estate remains the most popular asset class for Asia Pacific investors, particularly core investors. Meanwhile, office buildings and data center assets will receive increasing attention in 2025, with investors targeting core value-added and opportunistic properties in the office sector, as well as opportunistic pricing in the data center sector, especially in Southeast Asia.