Asia Pacific Commercial real estate Investment Hits US$31.2b in Q2 2025, Led by South Korea and Japan

KUALA LUMPUR, Aug 13 — Commercial real estate (CRE) investment in Asia Pacific rose 15% year-on-year to US$31.2 billion in Q2 2025, with South Korea recording the highest growth at 72% and Japan leading overall volumes at US$7.6 billion. Offices dominated transactions, followed by industrial, retail, and a surging living sector. “Asia Pacific commercial real estate continues to draw in global capital, demonstrating the region’s fundamental strength and the resilience of the asset class,” said Stuart Crow, CEO, Asia Pacific Capital Markets, JLL. In Malaysia, local REITs and investors drove RM227 million in deals, concentrated in industrial and retail sectors.

Local REITs and investors continued to drive Malaysia’s capital market in the second quarter of 2025, generating RM227 million in transactions concentrated in industrial and retail sectors. Key transactions included:

Commercial real estate

Retail property acquisitions by KIP REIT and Sentral REIT in suburban markets
Amanah Raya REIT’s strategic warehouse acquisition in Klang, structured as a sale and leaseback arrangement with 3PL tenant.

“The Paradigm REIT listing, encompassing three neighbourhood malls in Greater KL and Johor Bahru, collectively valued at RM2.4 billion, further demonstrates the resilience of established suburban malls supported by consistent local demand,” said Yulia Nikulicheva, Head of Research & Consultancy, JLL Malaysia.

“Additionally, Al-Aqar Healthcare REIT has expanded its holdings with new asset blocks at existing Ampang and Penang medical facilities, highlighting the sustained growth in healthcare service requirements,” says Nikulicheva.

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