International Property Investment Volumes in Asia-Pacific's Rental Housing Sector

Tuesday, 17 September 2024, 04:01

International property investment volumes are witnessing a significant shift towards rental housing in Asia-Pacific. With expatriate population growth and rising residential rents, investors are increasingly favoring multifamily assets like student housing and serviced apartments. Amid inflation concerns, the demand for these asset classes is likely to surge, offering robust opportunities for returns.
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International Property Investment Volumes in Asia-Pacific's Rental Housing Sector

Rising Interest in Rental Housing Assets

International property investors are currently directing their focus toward rental housing in the Asia-Pacific region, driven by a growing expatriate population and increasing residential rents.

Shifting Investment Volumes

According to a recent report from property consultancy CBRE, investment volumes in international property are being reshaped as student housing and serviced apartments gain prominence. In contrast, traditional segments like logistics and offices are losing appeal among investors.

  • Growth Potential: These emerging asset classes remain largely underinvested in Asia-Pacific, providing substantial potential for higher returns.
  • Inflation Hedge: With inflation on the rise, rental housing proves to be an effective inflation hedge, especially as rental rates surpass inflation levels in many economies.

Market Dynamics and Future Outlook

As global central banks prepare for rate cuts, including the Federal Reserve's expected 25 basis points reduction, the capital markets in Hong Kong and beyond are set for expansion. Greg Hyland, head of capital markets for Asia-Pacific, notes that these conditions will foster new capital deployment and consolidation.

  1. Japan is leading in multifamily investments, presenting unique opportunities compared to Australia and Mainland China.
  2. Rental housing in major hubs like Hong Kong, South Korea, and Singapore continues to attract significant investment.

In conclusion, the living sector is now viewed as a highly attractive space for international property investments, providing the benefits of robust fundamentals and resilient demand.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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