According to the latest Asia-Pacific Capital Trends Report by MSCI Inc, commercial real estate investment in the region surged 25% year-on-year to $50.4 billion in Q3 2025. The recovery was primarily driven by a sharp increase in portfolio and entity transactions, accounting for half of the quarter's total volume.

MSCI Inc noted that declining financing costs in key markets—including South Korea, Australia, Singapore, Hong Kong (China), and India—along with easing trade-related uncertainties, contributed to improved investment momentum. Investor appetite for large acquisitions grew, particularly in growth sectors such as data centers, Japanese multi-family housing, and Australian warehouses, reflecting renewed confidence in structurally resilient assets.

James Zhao, Head of Asia Private Assets Research at MSCI Inc, stated that despite lingering concerns over global economic growth and the ultimate impact of tariffs, market sentiment has turned notably more optimistic compared to early 2025. Investment returns have re-entered positive territory, and commercial activity has largely resumed across major markets. The transaction pipeline remains healthy heading into Q4, with overall market conditions expected to improve by year-end.