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 beginning of the next decade, according to an October research report from JLL. The annual investment volume for Asia Pacific multi-family assets is anticipated to more than double by 2030, potentially reaching US$20 billion. Factors such as urbanisation, a high renter population, and stretched housing affordability are driving growth in the multi-family market.

Pamela Ambler, head of investor intelligence for Asia Pacific at JLL notes that the conversion of current underperforming properties into rentable projects is a dominant theme, given the mismatch between available rental housing and demand.

“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 there is anticipated to be more demand for core multifamily product than investible stock.

Senja Residences will provide a comprehensive suite of facilities for families of all sizes to enjoy. Every home in this development will have access to facilities such as tennis courts, swimming pools, and a comprehensive playscape. In addition, the shopping, dining, and entertainment offerings at the nearby Westgate and Jem shopping malls provide residents with a plethora of activities to participate in.

In the first nine months of the year alone, multi-family investments in Apac exceeded US$5 billion, a 12% year-over-year increase, despite a 24% drop in total real estate investment transactions in the region. Japan lead the charge, followed by China and Australia.

In Japan, the multi-family sector is likely to keep growing over the next decade, particularly in large urban areas such as Tokyo, Osaka, and Nagoya. In Australia, growing post-pandemic migration is fuelling the build-to-rent market, while in China, the Shanghai multi-family market is a hive of activity.

Going forward, JLL predicts that the surge of new capital into the region’s core multifamily markets will lead to yield compression; however, this is expected at a slower pace than in the previous decade. With more investable products coming into the pipeline and wider participation from institutional investors, the growth of the multi-family sector is set to continue.