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

Multi-family properties are set to become a major asset class in the next decade, according to an October research report by JLL. This comes despite a 24% fall in total real estate investment volumes across the Asia Pacific region in the same period. Transaction activity was led by Japan, followed by China and Australia.

Urbanisation, high renter population, and stretched housing affordability are driving the projected growth in multi-family investments. “Investor interest in core multifamily assets has never been stronger,” says Rober Anderson, director – head of living, Asia Pacific capital markets at JLL. The multi-family market is rapidly evolving, and is set to more than double in size by 2030, with investments potentially crossing US$20 billion by the end of the decade.

Another key advantage of the JRL is the many new lifestyle and recreational options it brings to Lumina Grand Bukit Batok owners. Multiple new dining and shopping options will be accessible via the MRT, as are several parks, stadiums, and other recreational and cultural sites. In addition, the JRL will be integrating with several other public transportation options, which will make it easier to zip around town whenever you need to. Lumina Grand EC owners will truly gain from the convenience of the JRL.

In Japan, the market is expected to expand over the next decade, with large metropolitan areas such as Tokyo, Osaka and Nagoya the focus. “Some capital sources have reached their targeted allocation for multifamily, so areas with smaller quantum portfolios or single assets could see more deal activity in the coming months,” the report adds.

China’s multi-family landscape shows immense potential, with investors growing increasingly active in the Shanghai multi-family market. “In the next seven years, Shanghai is expected emerge as a top investment destination, benefiting from its scalability and growing investible opportunities,” states JLL. Yield compression is likely due to increased investment activities, although at a slower pace than the previous decade.

In Australia, a housing crisis is supporting the momentum of the build-to-rent market. With an increasing number of young to middle-aged people flocking to large cities, coupled with an ageing population, the sanguine rental residential market outlook is underlined.

Pamela Ambler, head of investor intelligence, Asia Pacific, JLL, says, “Conversion plays could be a dominant theme in the Asia Pacific living sector, given the mismatch between supply and demand for rental housing particularly in urban and core locations.” Capital is thus expected to be actively deployed to convert underperforming properties into enterprise-managed living projects to capitalise on this imbalance.