Why APAC Living?
Structural housing demand, constrained supply and the defensive characteristics of residential income continue to draw institutional capital into APAC Living. The survey shows that recent economic and geopolitical volatility is affecting the pace and form of deployment, but not investors' longer-term commitment to the sector.
Living allocations are building
Investor intentions point to both higher capital deployment and a larger role for Living within portfolios. A third of diversified respondents expect Living to account for more than 30% of their real estate allocation within five years. However, the pace of institutionalisation will remain constrained by the limited supply of standing, investment-grade stock outside Japan.
Capital is concentrating where scale is achievable
BTR/multifamily is the primary target segment for 34% of respondents, ahead of co-living and PBSA. Australia/New Zealand and Japan lead geographic preferences for different reasons: Japan offers APAC's deepest operational multifamily market, while Australia's housing undersupply and strong rental fundamentals support a substantial growth opportunity despite challenging development economics.
Investors asked to rank in order of preference. Data presented is mean score on a seven-point ranking, where 7 is most preferred.
Source: Cushman & Wakefield
A partnership-led route to market
Joint ventures are the most likely deal structure over the next one to three years, selected by 34% of respondents. At the same time, 73% are actively considering repositioning or change-of-use strategies and 56% prefer to manage portfolios through local specialist partners. Together, these findings point to a market where creating or converting stock and accessing local operating capabilities are often more practical than acquiring stabilised assets at scale.
Risk is changing timing, not direction
The survey was fielded during a period of heightened geopolitical volatility. While 61% of respondents became more cautious, almost all of that shift was marginal. Inflation and higher-for-longer interest rates are the main transmission channels, increasing preference for income-producing assets and reducing appetite for development exposure. The strategic commitment to APAC Living remains intact.
Pricing and evidence constrain activity
The gap between buyer and seller expectations is the largest investment challenge, identified by 44% of respondents, followed by development viability at 29%. Limited transaction evidence and inconsistent market transparency compound the problem, weakening the basis on which assets can be priced and investment decisions made.
Sustainability is becoming a risk filter
Sustainability is a key portfolio objective for 63% of respondents, but only 24% are willing to pay a premium for greener assets. This suggests that sustainability currently has greater influence as a screening and risk-management tool, with poor-performing assets more likely to face a discount or require additional capital expenditure than leading assets are to command a premium.
APAC Living's growth story is increasingly defined by the gap between capital appetite and available product. Investors able to create or aggregate institutional-quality stock, structure effective partnerships and navigate local operating requirements will be best placed to capture the opportunity.
Read the report for the full survey findings, including capital deployment intentions, preferred sectors and geographies, likely deal structures, the impact of geopolitical risk and evolving sustainability priorities.
