Japanese investors target Asia Pacific rental housing as living sector expands

Capital is being deployed across Australia, Singapore, South Korea, and Hong Kong.

Japanese investors are increasing their allocations to rental housing across Asia-Pacific, with Australia emerging as a key destination as institutional capital targets markets with strong housing demand and long-term income potential, according to Cushman & Wakefield.

Conal Newland, international director and head of Living, APAC, at Cushman & Wakefield, said the sector was entering a new phase of institutional expansion driven by structural demand.

Japanese capital invested in Australian real estate exceeded A$3 billion in 2025 and surpassed A$7 billion over the three years to 2025, reinforcing Australia's position as a key investment market despite more complex global conditions. Cushman & Wakefield estimates around 30% of that investment was directed to the Build-to-Rent sector.

The firm said Australia's strong population growth, urbanisation and persistent housing undersupply were supporting its appeal to Japanese investors. Japan remains Asia-Pacific's most mature and liquid multifamily market, while Australia is emerging as one of the region's fastest-growing Living markets as supply shortages and institutional investment deepen.

Japanese investors are also expanding beyond Australia, maintaining domestic exposure while increasing allocations to Living markets in Singapore, South Korea and Hong Kong. Newland said the investment strategy reflected a focus on long-term fundamentals rather than short-term market cycles.

Across Asia-Pacific, housing shortages and sustained rental demand are supporting greater institutional participation in Living assets. Cushman & Wakefield said investment is also spreading beyond Build-to-Rent into co-living, purpose-built student accommodation and affordable housing.

In Australia, Newland said rental growth had not resolved the underlying supply imbalance, with housing construction still failing to keep pace with demand. He said the gap was supporting long-term income growth and investor confidence.

Cushman & Wakefield expects institutional capital to play an increasingly important role in delivering rental housing as policy settings evolve and supply constraints persist across the region.

Newland said global investors, particularly Japanese institutions, were increasingly assessing rental housing opportunities over five-, 10- and 20-year horizons. Persistent housing shortages, demographic demand, income resilience and scalable operating platforms are expected to continue supporting the institutionalisation of rental markets across Asia-Pacific.