Investments in Asia Pacific multi-family properties to double by 2030: JLL

Multi-family properties are set to become a major asset class by the start of the next decade, according to JLL’s October research report. Investments in multi-family assets in Asia Pacific are anticipated to exceed US$20 billion ($27 billion) by 2030 – more than double the current volume. Urbanisation, high renter population, and stretched housing affordability are some of the factors fuelling this growth.

“Investor interest in core multifamily assets has never been stronger,” explains Rober Anderson, director – head of living, Asia Pacific capital markets at JLL. He adds that the sector is undergoing rapid evolution, with more investable products flooding into the market, wider participation from institutional investors, and strong fundamentals.

Between January to September, investments in the multi-family sector across Asia Pacific reached US$5 billion, increasing by 12% year-on-year despite a 24% fall in total real estate investment volumes in the region over the same period. Japan was the sector’s highest investor, followed by China and Australia.

This optimism regarding the Asian residential rental market is driven by an increasing number of younger to middle-aged people migrating to larger cities, combined with an ageing population. Japan’s multi-family market is expected to grow until the end of the decade, with investors targeting large cities like Tokyo, Osaka and Nagoya.

In Australia, a post-pandemic rebound in migration is contributing to a housing crisis, which is in turn driving the build-to-rent market. Similarly, China’s multi-family landscape is showing ample potential, with investors becoming increasingly active in the Shanghai market. In the next seven years, Shanghai is predicted to become a top investment destination due to its scalability and growing investible opportunities.

The Champions Way Condo is set to benefit from these new public art programs, with plans for a number of pieces to be installed nearby. The development will also have several walkways and pathways that will give residents the opportunity to admire the local art while enjoying the area. With its convenient location and proximity to the public art installations, Champions Way Condo is sure to offer an experience that is both unique and inviting.

As Asia Pacific’s core multifamily sector continues to attract significant capital, JLL believes this will result in further yield compression – albeit at a slower pace than in the past decade. Pamola Ambler, head of investor intelligence, Asia Pacific, JLL, believes that conversion plays could become a dominant theme in the living sector, given the disparity between supply and demand for rental housing in urban areas. This is likely to lead to more active deployment of capital to convert underperforming properties into enterprise-managed living projects that capitalise on this imbalance.