Although so-called dry powder in private credit has expanded, Apac lags significantly in private credit deals. As of June 2025, Apac accounted for only 5% of the global total, based on target fundraise amount compared to North America . Developed Apac’s private debt accounted for only 3% of all real estate debt (Australia has also emerged as APAC’s leading private credit market), compared to 12% for North America and 10% for Europe.
In a report released on Oct 2 on private credit in real estate, Knight Frank believes Apac is ripe for a take-off in private credit.
“Markets (in Apac) that have traditionally been secure and core over the long term but are now facing a lack of funding for refinancing or new developments present an ideal scenario for private credit. Hong Kong is a clear example of where the availability of real estate credit has contracted as asset values have been rebased,” notes Simon Mathews, a Director in Knight Frank’s Capital Advisory business, covering Asia-Pacific.
