Asia Pacific markets are demonstrating cautious optimism despite global economic headwinds, with the region emerging as a key driver of cross-border capital flows, according to Colliers’ Global Capital Flows September 2025 report.
Singapore, Japan, and Hong Kong secured positions among the world’s top 10 sources of cross-border capital, highlighting the region’s expanding role in outbound investment.
Simultaneously, Japan and Australia ranked among the top 10 global capital destinations, reflecting sustained investor confidence in Asia Pacific’s economic fundamentals.
Investment activity across the region has surpassed 2024 levels by 5% year-to-date, with Asia Pacific continuing to lead in land-led development projects.
Seven of the top 10 global land and development destinations are located in the region, including Singapore, China, Malaysia, Australia, India, Japan, and Hong Kong.
“Singapore continues to demonstrate its dual strength as both a capital source and investment destination,” said Bastiaan VB, Colliers’ Managing Director for Singapore. He added:
“Its leadership in land and development investment reflects investor confidence in long-term urban growth and infrastructure stability.”
The office sector has emerged as a standout performer, with Asia Pacific and EMEA leading the global recovery in office investment activity.
Office assets have reclaimed the top spot for transaction volumes on a rolling 24-month basis in both regions, signalling renewed confidence in workplace infrastructure.
Japan’s position among top global capital sources and destinations “highlights its enduring appeal to institutional investors,” said Akira Kuno, Colliers’ Executive Director and Head of Capital Markets for Japan, noting strong market fundamentals in office and residential sectors despite inflationary pressures.
Hong Kong’s improving investor sentiment is reflected in upward GDP forecast revisions and increased IPO activity.
“As Chinese investors’ activity increases, we anticipate renewed activity across core sectors including office and accommodation,” said Thomas Chak, Colliers’ Head of Capital Markets for Hong Kong.
The industrial sector maintained steady performance as the second most active investment sector globally and in Asia Pacific.
Retail assets have traded consistently since Q1 2025, while hospitality is gaining momentum as regional travel rebounds.
Data centre fundraising is accelerating, reflecting strong investor appetite for AI and digital-led commercial growth, marking a significant shift toward future-proofed infrastructure.
“Despite subdued global investment volumes in the first half of 2025, Asia Pacific is showing signs of strategic resilience,” said Lucy Mallick, International Capital Lead at Colliers.
