MSCI: Commercial real estate investment in the Asia-Pacific region increased by 25% year-on-year in the third quarter, with a significant rebound in investment confidence.

According to the latest MSCI Asia Pacific Capital Trends Report, in the third quarter of 2025, commercial real estate investment in the region increased by 25% year-on-year to $50.4 billion, driven by a significant increase in investment portfolio and entity transactions, accounting for half of all transactions in the quarter. MSCI stated that major markets including South Korea, Australia, Singapore, Hong Kong, and India experienced a decrease in financing costs and a reduction in trade-related uncertainties, leading to an improvement in investment momentum in the region. Investor interest in large-scale acquisitions, particularly in growth areas such as data centers, multi-family housing in Japan, and warehouses in Australia, highlights a resurgence of confidence in structurally resilient assets. Zhao Jieming, Head of MSCI Asia Private Equity Research, stated that while uncertainties remain regarding the impact of global economic growth and tariffs on various markets, market sentiment is significantly more optimistic compared to the beginning of the year. Investment returns have returned to positive territory, and commercial activities in most major markets have resumed, with transaction pipelines for the fourth quarter maintained at healthy levels. Overall, the market is poised for improvement by the end of 2025.