SPONSORED: Brookfield – Aging population intensifies Australia’s housing needs

Demand chronically outpaces supply in Australia’s living sector, and is currently exacerbated by increasing construction costs and a shortage of labor, according to a report by Joe Williams, senior vice president in Brookfield’s Real Estate Group, “How to play the living sector in Australia,” which was published in the October issue of Institutional Real Estate Asia Pacific. The report focuses on the senior living segment of the market, which “sits at the intersection of two mega global investment themes: an ageing population and housing.”

Senior living generates both income from fixed fees and capital gains from the resale of units. “These two types of income make senior living in Australia the only real asset model where capital gains or asset appreciation can be realised in cash without having to sell the underlying asset, creating perhaps one of the most direct proxies to long-term house price growth,” says Williams.

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