Key findings include:
- 85% of investors expect to increase Living investment over the next five years.
- Investors are increasingly favouring stabilised, income-producing and defensive Living assets. Recent volatility has prompted half of respondents to report a greater preference for stabilised, income-producing assets, yet only 17% expect stabilised acquisitions to be their most likely deal structure over the next one to three years, reflecting the limited availability of institutional-grade stock outside Japan. The resulting imbalance, combined with a challenging development environment, is pushing capital towards alternative routes to market, with 73% actively considering repositioning or change-of-use strategies.
- Australia/New Zealand and Japan rank clearly ahead of other APAC markets for prospective investment, reflecting the combination of institutional scale in Japan and housing undersupply underpinning growth potential in Australia.
- Market opacity remains a constraint on investment. The buyer-seller pricing gap is the leading investment challenge, identified by 44% of respondents, followed by development viability (29%). Limited transaction evidence and inconsistent transparency are making it harder for investors to price assets and deploy capital.
