Structural housing shortages and sustained rental demand are accelerating capital flows into institutional rental housing across the region
ASIA PACIFIC, 30 July, 2026 – Japanese investors are increasing allocations to rental housing across Asia Pacific (APAC), driving the next phase of Living sector growth as capital targets markets backed by strong demand and long-term income stability.
Conal Newland, Cushman & Wakefield’s International Director, Head of Living, APAC, said the sector is entering a new phase of institutional expansion driven by structural demand.
Australia has emerged as a key destination for this capital, supported by strong population growth, urbanisation and persistent housing undersupply. Japanese capital into Australian real estate exceeded USD$3 billion in 2025 and equates to over USD$7 billion in the last three years, reinforcing its position as a key investment market and signalling sustained investor conviction despite more complex global conditions. Cushman & Wakefield estimates that approximately 30% of that investment has been in the build-to-rent sector.
This reflects a broader shift across APAC, where housing shortages and sustained rental demand are supporting increased institutional investment in Living assets.
Japan remains APAC’s most mature and liquid multifamily market, while Australia is emerging as one of the region’s fastest-growing markets, supported by stronger population growth, deeper supply shortages and increasing institutional investment. As a result, Japanese investors are applying their domestic experience and expertise to higher-growth markets, accelerating the institutionalisation of Australia’s rental housing sector and reinforcing its position as a key opportunity in the region.
Japanese investors have been among the most active sources of offshore capital into Australia over the last five years, with growing focus on Living assets as part of a broader diversification strategy.
Source: RCA; Cushman & Wakefield Research
Positioned for long-term demand
As policy settings across APAC continue to evolve and supply constraints persist, institutional capital is expected to play an increasingly important role in delivering new rental housing.
This reflects the continued institutionalisation of rental markets across the region, supported by demographic demand, income resilience and scalable operating platforms.
“Global investors, particularly from Japan, are looking beyond today’s market conditions and focusing on where rental housing demand will be in five, ten and twenty years’ time. That long-term view, combined with persistent supply shortages, will continue to drive capital into institutional rental housing across the region,” Mr Newland said.
Note to Editors: The insights in this release are based on a keynote presentation delivered by Conal Newland, Cushman & Wakefield's International Director, Head of Living, APAC, at The Urban Developer Build-to-Rent Summit in Melbourne, where he explored the growing role of Japanese capital in Australia's rental housing market and the structural drivers shaping Living sector investment across APAC.
About Cushman & Wakefield Living Platform
Cushman & Wakefield’s Living platform provides integrated advisory services to investors, developers, and operators across the residential investment spectrum, including multifamily, build-to-rent, purpose-built student accommodation, co-living, and senior living. The team delivers integrated advisory across capital markets, valuation, development consultancy, and asset strategy, supported by proprietary research and a region-wide Asia Pacific network, as well as dedicated research and consultancy professionals who provide strategic insights and execution capabilities across the region. Click here for additional information.
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
