Investors to deploy more capital to Apac living sector over next five years: C&W

Investors plan to increase capital deployment into the Asia Pacific (Apac) living sector over the next five years, despite uncertainties brought on by the Middle East conflict, according to a Cushman & Wakefield survey.

The firm’s inaugural Apac Living Investor Survey 2026, which polled investors representing 223,953 living units or beds across the region in 2Q2026, unveiled that 85% plan to increase their living sector investments over the next five years, while none expect to reduce their allocations.

Based on respondents’ projected capital deployments, an estimated US$33.2 billion ($44.28 billion) will be invested in the sector over the next five years.

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Investors’ conviction in the Apac living sector remains strong, even with heightened caution following the outbreak of hostilities in the Middle East last quarter, which led to shocks in energy prices and supply chains.

“Despite heightened economic and geopolitical uncertainty, investors continue to view living as a long-term strategic allocation supported by resilient demand fundamentals, defensive income characteristics and strong structural growth drivers,” said Conal Newland, Cushman & Wakefield’s international director and head of living for Apac.

More investors also intend to widen their exposure to the living sector. A third of survey respondents with diversified real estate portfolios expect the sector to account for over 30% of their portfolio within five years, making it the largest sector exposure for many investors.

The combined Australia and New Zealand area was voted the most preferred Apac destination for living sector investments, largely underpinned by the Australian market’s structural housing undersupply and strong rental fundamentals.

Japan ranked second, with investors drawn to the country’s mature institutional multifamily market, as well as its scale, liquidity and deep operational stock.

Singapore ranked third, followed closely by South Korea and Hong Kong. While all three markets attract interest, capital deployment in these markets remains constrained by scale, regulation and pricing, said Cushman & Wakefield.

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Across the different living sub-sectors, the build-to-rent and multifamily category topped the list for investors, with 34% of respondents ranking it as their primary target segment over the next three years. Co-living was second at 23%, ahead of purpose-built student accommodation (22%), senior living (14%) and workers' housing (7%).

Investors’ geographic and segment preferences indicate that capital is prioritising markets where institutional-scale deployment is most achievable, added Cushman & Wakefield.

Still, deployment remains robust, with the Apac living sector facing a shortage of investable stock rather than a lack of capital, noted Josh Rose-Nokes, the firm’s Apac director for living research. “Investors increasingly want stabilised, income-producing living assets, yet much of Apac lacks sufficient institutional-grade product to satisfy that demand.”

As competition for stabilised assets grows, investors are increasingly turning to alternative investment routes.

According to the survey, 73% of respondents are actively considering repositioning strategies, either through acquiring assets for conversion or upgrading existing holdings. In particular, office and hotel conversions are becoming a bigger source of living supply in markets such as Singapore and Hong Kong.

Meanwhile, pricing remains the top concern among Apac living sector investors. A total of 44% of respondents identified the gap between buyer and seller expectations as the biggest challenge, followed by development viability at 29%.

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