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

Multi-family properties are set to become an increasingly popular asset class by the start of the next decade, according to a report from JLL. The report predicts that the annual investment volume in multi-family assets in the Asia Pacific region will more than double by 2030, potentially exceeding US$20 billion.

Urbanisation, a high renter population, and stretched housing affordability are some of the main drivers behind the anticipated surge in multi-family investments. Robert Anderson, director – head of living, Asia Pacific capital markets at JLL states that “Investor interest in core multifamily assets has never been stronger.” He adds that the multi-family market is rapidly evolving with more investable products entering the market.

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Transaction activity for multi-family investments in Apac between January and September has been strong despite a decrease in the broader market. Japan led the way with China and Australia close behind.

A key factor for this positive outlook in the rental residential market is an increasing number of young to middle-aged people who are making their way to larger cities along with an ageing population. Interest in the multi-family sector in Japan is anticipated to expand over the next decade, with investors targeting large metropolitan areas such as Tokyo, Osaka, and Nagoya.

Australia is also experiencing a housing crisis, which is further aided by the post-pandemic rebound in migration and is consequently supporting the growth of its build-to-rent market. China’s multi-family landscape also offers immense potential, with investors becoming increasingly active in the Shanghai market which is expected to be a top investment destination over the next seven years.

JLL states that as capital continues to flow into core multifamily markets in Asia Pacific, further yield compression can be expected, although the pace will be slower than in the past decade. With a clear mismatch between supply and demand for rental housing, particularly in urban and core locations, conversion of underperforming properties into enterprise-managed living projects is anticipated to be a dominant theme.