Sydney Emerges as Preferred Destination for Cross-Border Real Estate Investment in Asia Pacific in 2025

Sydney has secured the second rank, trailing Tokyo, as a preferred destination for cross-border real estate investment in Asia Pacific, as per CBRE’s 2025 Asia Pacific Investor Intentions Survey. Investors’ interest in Sydney’s real estate market is driven by asset repricing and the likelihood of reducing debt costs. Investors are displaying selective interest in other Australian markets, such as Melbourne and Brisbane, which rank seventh.

The survey reveals that core assets might witness the most robust capital growth due to a stronger emphasis from investors. The Asian Pacific region’s investment sentiment has seen a positive shift, with net buying intention increasing from 5% in 2024 to 13% in 2025. This rise is attributed to falling debt costs and asset repricing. Australian and Korean landlords have shown a notable increase in their net buying intentions, propelled by appealing pricing opportunities in their domestic markets.

According to Greg Hyland, Head of Capital Markets, Asia Pacific for CBRE, investment activity is predicted to speed up in 2025 due to the impact of rate cuts across the region. Institutional investors, REITs, and funds are major contributors to this momentum. They are primarily focusing on core-plus and value-add opportunities to maximize returns.

Industrial properties are the most favored asset class for Asia Pacific investors, particularly core investors. Investors are also showing increased interest in office and data centre assets in 2025, especially those offering core-plus and value-add opportunities in the office sector and opportunistic pricing for data centres, mainly in Southeast Asia.

Ada Choi, Head of Research, Asia Pacific for CBRE, stated that the logistics and office sectors are the primary investment preferences in 2025. She added that investors continue to focus on logistics assets in Japan and Australia, with rising interest in India.

The survey, conducted in the last two months of 2024, also highlighted geopolitical concerns as a major challenge for over 40% of investors. Healthcare-related properties are the most preferred alternative asset type for investment. Approximately 56% of investors plan to prioritize acquiring or developing green buildings, while 35% aim to increase renewable energy generation in the industrial and living sectors.

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