Despite a volatile macroeconomic landscape, family offices in the Asia-Pacific region are strengthening their commitment to real estate, recognizing the sector’s potential for both capital appreciation and wealth preservation. According to The Wealth Report, Knight Frank’s latest survey of 150 single and multi-family offices worldwide, investors are increasingly diversifying into high-growth real estate sectors such as luxury residential, industrial logistics, and living spaces.
The survey, conducted between November and December 2024, covered 121 single-family offices, 18 multi-family offices, and 11 senior investment heads. Notably, 51% of surveyed offices are headquartered in Asia-Pacific, highlighting the region’s growing influence in global investment strategies. Major hubs such as Singapore, Sydney, and Hong Kong SAR are emerging as key centers for wealth management and property investment, alongside established markets like London, New York, and Geneva.
Growing Allocations to Real Estate
With total assets under management (AUM) exceeding US$84 billion across the surveyed firms, the findings indicate a significant shift toward real estate:
- 40% of family offices operate businesses with real estate holdings.
- 28% increased their real estate allocations in the past 18 months, compared to just 17% who reduced exposure.
- Office spaces (20%), luxury residential (17%), industrial (14%), and hotels (12%) remain the most preferred asset classes.
Looking ahead, real estate investment appetite continues to strengthen. 44% of family offices plan to increase their property exposure over the next 18 months, with the highest interest in Living sectors (14%), Industrial/logistics (13%), and Luxury residential (12%).
“Despite concerns over macroeconomic conditions, family offices remain bullish on real estate, particularly in Asia, where diversification into emerging sectors like data centers and living-related assets is gaining traction,” said Christine Li, Head of Research at Knight Frank Asia-Pacific.
Challenges and Investment Strategies
While optimism remains high, investors face structural challenges in expanding their real estate portfolios. The top barriers include:
- Identifying reliable partners/operators (23%)
- Complex tax regulations (20%)
- Intense competition for assets (19%)
- Regulatory and compliance hurdles (17%)
In response, family offices are shifting away from traditional core investments toward opportunistic (31.9%) and value-add (30.3%) strategies, seeking higher returns in a market shaped by rising interest rates and shifting economic conditions.
A Regional Focus with Global Ambitions
Asia-Pacific family offices exhibit a strong preference for domestic real estate investments, with 70% of their portfolios concentrated in local markets. Countries such as New Zealand (93%) and Australia (90%) demonstrate particularly high domestic investment levels. However, investors in Hong Kong SAR (33%) and Singapore (41%) are expanding their reach, targeting opportunities in both regional and international markets.
For most family offices, real estate remains a long-term strategy:
- 37% of investments have a horizon of nine years or more
- 32% span between three to six years
- Only 3% of transactions are made with a sub-three-year outlook
Shifting Dynamics Among Family Offices
The leadership of family offices remains predominantly baby boomer-led (50%), with Gen X (36%) following closely behind. However, the next generation is increasingly influencing investment decisions:
- 58% of family offices have involved younger generations in decision-making
- 47% report some shifts in investment strategies, with 18% seeing a significant transformation
- Millennials and Gen Z are prioritizing sustainable investments, with 63% of millennial investors actively allocating capital to ESG-focused assets, compared to 35% of baby boomers
Singapore: A Growing Wealth Hub
Singapore continues to solidify its position as a global wealth and investment hub. The number of registered single-family offices (SFOs) surged from 400 in 2020 to over 2,000 by 2024, underscoring the city-state’s appeal to high-net-worth individuals seeking stability and pro-business policies.
“In an era of rising geopolitical tensions and economic fragmentation, Singapore remains an attractive destination for wealth preservation and capital deployment,” said Galven Tan, Chief Executive Officer at Knight Frank Singapore.
In 2024 alone, family offices played a crucial role in high-profile property acquisitions previously dominated by institutional investors. Notable transactions included:
- Admirax Industrial Building – Sold for S$154 million
- 21 Collyer Quay (Office Building) – Acquired for S$688 million
- River Valley Apartments (Collective Sale) – Closed at S$56 million, brokered by Knight Frank Singapore
The growing influence of family offices in real estate investment signals a major shift in global wealth management. With a stronghold in Asia-Pacific, these investors are actively diversifying into resilient and high-yielding property assets, overcoming structural challenges through strategic partnerships and innovative investment approaches.
As family offices continue to evolve, the next generation of leaders is expected to drive further changes, particularly in sustainable and technology-driven real estate investments.
