Southeast Asia’s (SEA) real estate investment market rebounded decisively in 2025, with volumes climbing 16% year-on-year to US$21.8 billion, defying global economic headwinds and policy uncertainty. The expansion was underpinned by accelerating capital flows into industrial and digital infrastructure assets, as investors shifted their focus towards sectors aligned with supply chain realignment and AI-driven growth.
Cushman & Wakefield’s fourth annual Southeast Asia Outlookreport shows that Singapore remained the region’s largest investment market, accounting for approximately 61% of total SEA volumes. Across the other countries in the region, industrial investment sales reached US$1.3 billion in 2025, rising approximately 48% year-on-year. Demand was concentrated in prime logistics and warehouse facilities, driven by long-term e-commerce growth, third-party logistics expansion and SEA’s increasing role as a global manufacturing hub amid ongoing supply chain reconfiguration. Singapore, Malaysia, Thailand and Vietnam benefitted from strong trade corridors and manufacturing ecosystems, while Indonesia and the Philippines were supported by resilient domestic consumption.
Data centres emerged as the largest property type by investment volume in SEA in 2025. Johor continued to attract spillover demand from Singapore, while Thailand, Indonesia, the Philippines and Vietnam remain relatively underserved markets with significant growth runway. Recent large-scale capital commitments underscore sustained investor confidence in the region’s digital infrastructure trajectory.
Wong Xian Yang, Head of Research, Singapore & Southeast Asia and author of the report said:
“The recovery in 2025 reflects more than cyclical momentum - it signals a structural shift in capital allocation. Investors are increasingly targeting sectors aligned with manufacturing expansion and digitalisation, particularly logistics and data centres. While Singapore continues to anchor regional liquidity, Southeast Asia is capturing the next wave of growth as supply chains diversify and institutional-grade assets deepen across the region.”
Vietnam Highlights
Vietnam recorded the strongest real GDP growth among the SEA-6 economies in 2025, expanding by 8.0%, well above its pre-pandemic average of 7.1%. Growth was supported by strong exports, alongside robust performance in manufacturing and the services sector, reflecting resilient global demand and Vietnam’s expanding role within regional manufacturing and trade networks. At the same time, stable domestic consumption continues to highlight the country’s underlying consumer potential. Manufacturing and trade sectors remain key beneficiaries of supply chain diversification and sustained foreign investment into export-oriented industries.
Looking ahead, macroeconomic momentum is expected to moderate slightly. Population growth has slowed to 0.6%, while lending rates at commercial banks edged upward toward the end of the year, which may place some pressure on housing demand and consumer spending in the near term. Nevertheless, Vietnam’s economy is projected to grow 6.3% in 2026, maintaining its position one of the fastest-growing economies within the SEA-6 region.
From a real estate perspective, industrial assets continue to anchor market expansion. Vietnam remains a key beneficiary of the China+1 strategy, supported by its strategic location, expanding infrastructure network and established electronics manufacturing clusters. Meanwhile, retail real estate is expected to strengthen in 2026, with retail sales forecast to grow by more than 15%, supporting demand for modern retail space in major urban centres.
Despite data centres being the largest property type by investment volume across emerging Southeast Asia (SEA-6 excluding Singapore) in 2025, Vietnam’s data centre market remains relatively nascent compared to regional peers. This suggests significant long-term growth potential, as digital infrastructure demand rises alongside the expansion of cloud services, AI applications and the country’s rapidly growing digital economy.
Looking Ahead
SEA is projected to grow 4.3% in 2026, maintaining its position as one of the fastest-growing regions globally. Private consumption across SEA (excluding Singapore) is expected to reach US$5 trillion by 2035, expanding at approximately 8% annually. With inflation easing, policy rates trending downward and unemployment levels generally stable across major economies, improving financing conditions could catalyse broader capital deployment.
“Southeast Asia’s momentum is being fuelled not only by investor appetite, but by the region’s expanding consumer base, young workforce and ambitious infrastructure build‑out,” said Anshul Jain, Chief Executive - India & Southeast Asia & APAC Office and Retail, Cushman & Wakefield. “We’re seeing stronger cross‑border capital movement, deeper participation from global corporates, and growing demand for high‑quality, sustainable space - particularly in data centres, where hyperscale expansion continues to accelerate across the region. These fundamentals are enhancing the Southeast Asia's competitiveness and will shape the next phase of real estate growth.”
For the full report including individual SEA market snapshots, click here to download Cushman & Wakefield’s Southeast Asia Outlook 2026.
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