US leads second-quarter Asia-Pacific real estate deals with assets worth US$5 billion

Cross-border real estate investments in Asia-Pacific reached US$12.1 billion in the second quarter, a 50.1 per cent surge year on year and the highest level since the third quarter of 2022, according to a Knight Frank report on Thursday. US investors led the charge, pumping US$4.97 billion into the region, accounting for 41 per cent of the total.

“US investors have always been active in the Asia-Pacific region, which offers exposure to both emerging and mature markets, enabling a balance between potential and stability,” said Christine Li, head of research for Asia-Pacific at Knight Frank.

“Compared with the US and Europe, certain Asia-Pacific markets offer more attractive pricing and yields, especially in the office, [residential] and data centre sectors,” she said. The recent moves by many of the central banks in the region to lower interest rates – in contrast with the US Federal Reserve’s move to hold rates steady – also helped to reduce borrowing costs and improve returns, she added.