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According to CBRE’s 2025 Asia Pacific Investor Intentions Survey, Sydney has secured the second spot, trailing Tokyo, as a key target for cross-border real estate investment in the region as buying intentions continue to rise.
The survey reveals a rise in investment sentiment, with net buying intention increasing from 5 per cent in 2024 to 13 per cent in 2025.
CBRE also highlighted that selling intentions have been marked down slightly in 2025, falling from a record high of 44 per cent in 2024 to 40 per cent. Meanwhile, buying attention has risen, moving from 49 per cent to 53 per cent, marking the third-highest level seen in the past decade.
It also uncovered that the increase is driven by asset repricing and the potential for decreasing debt costs, making Sydney an attractive market for investors, while other Australian markets like Melbourne and Brisbane receive a more selective outlook.
Greg Hyland, head of capital markets, Asia Pacific at CBRE, noted that while expectations for significant rate cuts have tempered due to persistent inflation, investment activity is still set to accelerate in 2025 as cuts take effect across the region.
“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,” he stated.
CBRE predicts that REITs will shift into buy mode this year, with net intentions climbing to 22 per cent, rebounding from -13 per cent in 2024, as falling policy rates support activity.
CBRE also highlighted that momentum in private equity, real estate funds and institutional investments gained pace in late 2024, with continued growth anticipated in 2025.
Meanwhile, private investors are expected to increase selling activity, and developers face neutral investment intentions due to rising costs and debt challenges.
CBRE also revealed that investors are prioritising core assets and are expected to drive the strongest capital growth, with industrial properties remaining the top choice among core investors.
Growing investor interest in office and data centre assets for 2025 has been highlighted by CBRE, due to the increased attention to core-plus and value-added office properties.
CBRE also noted that opportunistic pricing for data centres, particularly in south-east Asia, is gaining significant interest.
The 2025 Asia Pacific Investor Intentions Survey, conducted in November and December 2024, also highlighted key trends in the real estate investment landscape:
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Over 40 per cent of investors identify geopolitical concerns as the biggest challenge, particularly uncertainties related to tariffs and US fiscal policies.
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Healthcare-related properties, such as life sciences and medical offices, are the most preferred alternative asset type for investment, followed by data centres, student accommodation and retirement living.
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Fifty-six per cent of investors plan to prioritise acquiring or developing green buildings as their top sustainability initiative, outpacing efforts to retrofit existing buildings.
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Thirty-five per cent of investors aim to increase renewable energy generation, with a focus on the industrial and living sectors.
Ada Choi, head of research, Asia Pacific at CBRE, emphasised that investors’ preferences for 2025 remain strongly focused on the logistics and office sectors.
“Investors are maintaining their focus on logistics assets in Japan and Australia, with emerging interest in India,” she said.
“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.”
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