Asia-Pacific Real Estate 2025: Confidence Returns Across the Region
- International Property Alerts
- November 11, 2025
After several years of uncertainty, the Asia-Pacific property market is regaining its rhythm.
From Tokyo to Bangkok, Sydney to Kuala Lumpur, investors are re-emerging as inflation eases and borrowing costs begin to stabilise.
According to CBRE’s Asia-Pacific Investor Intentions Survey 2025, net buying intentions jumped from 5 % in 2024 to 13 % this year—the strongest improvement since 2018. (CBRE 2025 Survey)
CBRE summarises the trend neatly: “Steady growth, split performance.” That means capital is flowing again, but only into markets with transparency, infrastructure, and credible yields.
🇯🇵 Japan — Tokyo Leads With Stability
Investment volumes: up 23 % year-on-year as overseas capital returns. (CBRE Japan Investment Snapshot 2025)
Yields: prime multifamily assets offer ~3.5 – 4 % net; logistics assets ~4.5 %.
Demand drivers: a weak yen, ultra-low interest rates, and strong domestic rental occupancy.
> “Japan is Asia’s safe-haven market right now—strong governance, stable cashflow, and a currency play rolled into one,” notes Elly Herriman of IPA.
Foreign funds such as Blackstone and GIC expanded their Japanese portfolios in 2025, targeting rental housing and logistics. Tokyo’s residential vacancy rate sits below 2 %, the lowest in the OECD.
🇹🇭 Thailand — Tourism Fuels a Resort Revival
Thailand’s recovery is led by tourism and long-stay lifestyle demand.
Condo sales: up 200 % year-on-year entering 2025.
Tourist arrivals: exceeded 40 million, almost pre-pandemic record.
Branded residences: now 10 % of new supply in Phuket. (CBRE Thailand Market Update H1 2025)
Gross yields: 7 – 8 % on managed resort apartments.
Bangkok’s luxury-condo market also strengthened, buoyed by infrastructure spending (Bang Sue Grand Station, new mass-transit lines) and a foreign-ownership quota still capped at 49 %.
> “Thailand’s blend of lifestyle, yield and transparent ownership puts it back on the global radar,” says Herriman.
🇲🇾 Malaysia — Affordability & Long-Stay Incentives
Malaysia’s MM2H (My Second Home) and Digital Nomad visas continue to attract overseas residents.
Kuala Lumpur condos: average €1,600 / m² — among Asia’s best value.
Yields: around 5 – 6 % gross.
Foreign ownership: permitted with a minimum price threshold (~MYR 1 million).
According to JLL Malaysia 2025 Outlook, the market is “moving toward equilibrium” after years of oversupply, with new launches now 15 % below pre-2020 levels.
🇦🇺 Australia — Population Growth Keeps Demand High
Despite higher borrowing costs, Australia’s residential prices rose 3.2 % YoY by mid-2025. (CoreLogic Monthly Housing Update Sept 2025)
Sydney & Melbourne: stabilising; investors returning after two years of decline.
Rental vacancy: below 1 % nationwide, driving rents +10 % YoY.
Migration: net overseas arrivals +30 % since 2022.
JLL Australia’s report calls 2025 “a new balance point” where strong population growth meets limited housing supply.
🇮🇩 Indonesia & 🇵🇭 Philippines — Emerging Yield Plays
Both countries remain on IPA’s “next wave” list.
Jakarta condo yields average 6 – 7 %; economic growth > 5 %.
Manila rental yields range 7 – 9 %, among the highest in Asia, helped by a strong BPO office sector. (Colliers Philippines 2025 Market Report)
> “These markets carry more risk, but they also offer real cashflow while others offer only capital speculation,” Herriman says.
Structural Drivers Behind the Rebound
1. Demographics: Asia-Pacific will add 250 million new urban residents by 2030 (UN Habitat 2025).
2. Infrastructure Boom: Over $1 trillion in regional transport and energy projects underway (ADB data).
3. Digital Economy & Nomad Visas: Thailand, Indonesia & Malaysia now offer extended digital-worker visas tied to property tenancy or ownership.
4. Institutional Demand: PGIM Real Estate’s 2025 Spotlight reports that “prime logistics and living assets in Asia-Pacific will outperform due to limited new supply.” (PGIM 2025 Report)
⚠️ Risks to Monitor
Geopolitics: China-US trade tension and South China Sea disputes could affect investor sentiment.
Regulation: Foreign-buyer caps or tax changes (e.g., Australia’s new 7 % stamp duty surcharge) can impact returns.
Currency volatility: Yen and baht movements alter real yields for USD/EUR investors.
📈 Investor Takeaways for 2025 – 2026
Japan = stability + currency play.
Thailand = lifestyle + tourism yield.
Malaysia = affordable ownership + visa residency.
Australia = population growth + tight supply.
Indonesia/Philippines = emerging yield opportunities.
> “Asia-Pacific is no longer the speculative frontier—it’s the world’s most dynamic combination of lifestyle, yield and future demand,” says Herriman.
IPA Investor Checklist
- Target net yields 5–8 % through managed rental or branded resort assets.
- Diversify between mature (Japan/Australia) and growth (Thailand/Malaysia) markets.
- Check visa rules to align investment with residency or long-stay rights.
- Use local management for rental and maintenance to protect returns.
- Model for 10-year horizon and hedge currency exposure where possible.
📧 elly@internationalpropertyalerts.com
🌐 www.internationalpropertyalerts.com
📱 WhatsApp: +44 7796 174253
About International Property Alerts
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