U
S investment in Asia-Pacific real estate surged 31% year on year in the second quarter, driven by investors seeking stable growth and yields in markets like Australia, Singapore, and Japan. Despite looming tariff challenges, cross-border investments reached a record high of $12.1 billion, with US investors leading the charge at $4.97 billion or 41% of the total.

    According to Knight Frank's research head Christine Li, Asia-Pacific offers a unique balance between emerging and mature markets, making it an attractive destination for US investors. Compared to the US and Europe, certain Asian markets offer more competitive pricing and yields, particularly in office, residential, and data centre sectors.

    The region's central banks have also helped by lowering interest rates, reducing borrowing costs and improving returns. Japan attracted $2.4 billion of overseas investment into its real estate sector, while Australia, Japan, and Singapore were the top destinations due to their regulatory transparency and market liquidity, which offset macroeconomic headwinds like slowing growth.