The year 2024 saw economies in Asia Pacific navigate through inflationary pressures, moderating domestic demand post-pandemic and an export rebound driven by the global technology upturn. While China’s GDP growth is expected to slow further to 4.4 percent in 2025, developed Asia Pacific GDP growth averaging 2 percent is expected to outperform the United States and Europe over the next five years, supported by rising intraregional trade and the continued emergence of Southeast Asia and India.

Central banks across many parts of Asia Pacific are expected to cut interest rates through 2025. Current analyst expectations are for key policy rates in Australia and South Korea to fall around 100 basis points by the end of 2025, helping drive real estate liquidity and valuations. Japan is the notable exception. The Bank of Japan is expected to continue tightening monetary policy and raise policy rates, although only at a gradual pace. And while real estate financing costs remain high