Australia dominates APAC real estate private credit

Australia has emerged as the leader in real estate private credit across the Asia Pacific in recent years, capturing a substantial amount of funds raised between 2020 and 2024, with growth continuing to accelerate.

- Matthew Wai

According to Knight Frank's Horizon Part III: The Rise of Real Estate Credit in Asia-Pacific — Bridging the Gap report, Australia now leads in regional activity in raising for the sector, capturing 40% of the $17.0 billion (US$11.2bn) raised in APAC between 2020 and 2024, followed by India (36%), South Korea (11%) and Japan (5%).

The Knight Frank report projects there will be US$90 to US$110 billion in private credit growth over the next three years across Australia, Hong Kong SAR, India and South Korea.

Australia is expected to drive nearly 50% of this expansion, with India contributing 20-25%, based on anticipated real estate debt growth and the expanding market share of private credit through 2028, according to Knight Frank.

Additionally, private credit now accounts for about $76 billion (US$50bn) or 16% of total commercial real estate lending in Australia, as momentum continues to draw borrowers away from traditional banks.