Singapore and three other regions in Apac solidify their role as global capital powerhouses

SINGAPORE: Asia Pacific continues to play a crucial role in shaping the global investment landscape, with four of the top 10 sources of global capital coming from the region—Singapore, Hong Kong, Japan, and China. According to the Colliers’ Global Capital Flows March 2025 report that Real Estate Asia published, the past two years have seen substantial investment in Asia Pacific, reflecting the region’s diverse investment opportunities and strategic significance.

Robust investment across key sectors

The report highlights that Asia Pacific’s real estate market has remained a strong magnet for global capital, with investment volumes in 2024 reaching 72% of the five-year average. Over the past 24 months, six key sectors attracted a remarkable $183 billion, demonstrating the region’s broad investment appeal. The office sector led the charge with  $57 billion, closely followed by industrial assets at  $55 billion. Other sectors, such as retail, multifamily, and hospitality, also saw substantial investments, reflecting the region’s balanced and diversified appeal.

Chris Pilgrim, Managing Director of Global Capital Markets at Colliers, emphasised the region’s undeniable appeal as a global capital hub. “Asia Pacific’s diverse investment potential, especially in office, industrial, and retail, continues to drive significant cross-border capital flows. Its growing influence and strategic positioning underline its role in shaping the future of global investments,” Pilgrim stated.

Asia Pacific dominates in land and development investment

Asia Pacific is also a leader in land and development investment, with seven of the top 10 global destinations for land development and infrastructure projects located within the region, including China, Singapore, Australia, India, Malaysia, Vietnam, and Japan. This highlights Asia Pacific’s attractiveness as a growth hub, drawing investors seeking opportunities in land development and infrastructure.

In terms of standing assets, Asia Pacific remains a key player, with Japan, Australia, and China ranking among the top 10 global destinations. Notably, Singapore, Hong Kong, Japan, and China also feature prominently as sources of cross-border capital, underscoring the region’s continued dominance in the global investment sphere.

Pilgrim predicts that 2025 could see a shift in global yield spreads, potentially aligning across regions and facilitating the broader deployment of both domestic and cross-border capital. As the dollar strengthens, the EMEA and Asia Pacific regions are expected to be the primary beneficiaries of this increased global cross-border activity.