Asia Pacific living sector poised for growth: Japan and Australia lead investments

The living sector in Asia Pacific, encompassing student housing, co-living, serviced apartment, rental housing/multifamily, and senior living, is attracting investor attention, driven by growth of the region’s expatriate population, low homeownership affordability and the effectiveness of rental residential investments as an inflation hedge, according to CBRE.

While the living sector in Asia Pacific is still in its early stages, accounting for only 6 percent of commercial real estate investment volumes since 2019, compared to 27 percent in Europe and 44 percent in the United States, there is a vast opportunity for investors looking to diversify their portfolios across the region.

“We expect potential interest rate cuts will drive capital deployment and consolidation opportunities,” said Greg Hyland, head of capital markets, Asia Pacific, for CBRE. “With strong mar