#Japan #Tokyo #Real Estate #Cushman & Wakefield #APAC Living

Investor Confidence in APAC Real Estate

In the context of growing investor confidence in residential real estate within the Asia-Pacific (APAC) region, a recent survey conducted by Cushman & Wakefield, known as the APAC Living Investor Survey 2026, indicates that approximately 85% of investors plan to expand their investments over the next five years. This reflects a remarkable commitment, as the total estimated investment during this timeframe is projected at $33.2 billion.

The survey highlights the increasing significance of the Living sector in APAC's real estate portfolios, driven by a robust demand foundation and a preference for stable, income-generating assets. Notably, nearly one-third of institutional investors envisage increasing their Living sector investments to more than 30% of their overall real estate portfolios within five years. This trend underscores the growing importance of the Living sector in the strategic plans of institutional investors.

Australia and Japan Take the Lead

According to the survey findings, Australia, New Zealand, and Japan have emerged as the most attractive markets for Living investments, significantly outpacing other nations. Japan's high ranking can be attributed to several key factors:

• - A large market size
• - High liquidity
• - A well-established multi-family housing market catering to institutional investors in APAC

On the other hand, Australia is recognized for its serious housing supply shortage, and the strong demand for rental housing supports its long-term growth potential in the investment landscape. Emerging markets such as Singapore, South Korea, and Hong Kong are also identified as promising, yet certain constraints, including investment scale, regulatory environments, and price levels, may hinder expansion.

Demand for Stable Income-Generating Assets

The survey further reveals that investors exhibit a stronger preference for stable, income-generating defensive assets—especially in light of rising market volatility. Approximately 50% of respondents have expressed an increased focus on stable operating assets. However, many APAC markets currently face a shortage of high-quality existing properties suitable for institutional investors, leading to a mismatch between supply and demand.

As a result of this supply-demand gap, investors are adopting diverse investment strategies beyond traditional methods, with 73% considering property use conversion or repositioning. Additionally, joint ventures (JVs) are anticipated to become a prominent investment scheme over the next one to three years, particularly effective in markets like Singapore and Hong Kong where the conversion of offices and hotels to residential units is expanding as a new source of supply.

Ongoing Challenges to Investment Expansion

Despite the sustained strong demand among investors, several barriers remain regarding actual investment execution. Key challenges identified include:

• - The price expectation gap between buyers and sellers (44%)
• - Development project profitability (29%)
• - A lack of available transaction case studies
• - Variations in market transparency

These factors complicate accurate asset evaluations and the efficient execution of investments, as noted by survey respondents.

Survey Overview

The APAC Living Investor Survey 2026 was conducted with a target group that includes institutional investors, fund managers, publicly listed real estate companies, and Living sector specialists. Participants collectively manage an estimated total of 224,000 units/bedspaces. Notably, diversified investors, who invest across multiple real estate sectors excluding Living sector-focused investors, were also included in the survey.

Administered in the second quarter of 2026, amidst rising tensions in the Middle East, the survey analyzed investor sentiment, asset allocation trends, and investment priorities within APAC's Living sector. The five-year investment estimate of $33.2 billion was based on the median of the ranges selected by respondents.

About Cushman & Wakefield’s Living Platform

Cushman & Wakefield’s Living platform offers integrated advisory services across the entire housing investment spectrum, including multi-family housing, build-to-rent communities, dedicated student housing, co-living, and senior living. The team provides comprehensive insights on capital markets, valuations, development consulting, and asset strategy, bolstered by unique research and an expansive network throughout APAC to support strategic insights and execution capabilities.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) stands as one of the world’s leading global companies providing comprehensive commercial real estate services across both tenant and investment sectors. With more than 350 offices in about 60 countries and a workforce of approximately 53,000 employees, the firm reported $10.3 billion in revenue across its key sectors, including facilities management, investment sales, valuation, tenant representation, leasing, project management, and more for 2025. Guided by the principle of "Better never settles," the company strives for sustainable growth and enhancing corporate value, earning high regard in the industry and beyond. For more information, please visit Cushman & Wakefield's website.