Investors in the Asia Pacific (APAC) living sector are increasingly focusing on how to invest rather than where, according to Savills’ latest report for Q2 2026. The report identifies five key investment strategies that are shaping the sector amidst changing market conditions and capital dynamics.
The strategies include distressed and adaptive reuse conversions, ground-up development, platform mergers and acquisitions (M&A), and direct acquisition. Japan remains a mature market for stabilised multifamily assets, with around 35% of major transactions involving overseas investors. In Australia, build-to-rent (BTR) developments and office conversions are gaining traction, with projects like Brisbane’s 41 George Street delivering over 1,180 student accommodation beds.
Hong Kong leads in hotel-to-living conversions, with 13 hotel transactions worth $819m (HK$6.4b) in the past year. These conversions are primarily into student accommodation and co-living spaces. Meanwhile, Singapore sees a rise in platform acquisitions and adaptive reuse, with companies like Habyt and The Assembly Place taking the lead.
Nicholas Wilson, Senior Director at Savills, emphasised the importance of execution in investment strategies, stating, “APAC living is not a single trade. Execution is now the differentiator.”
The report underscores that whilst short-term opportunities arise from dislocation in hotels and offices, long-term demand in the living sector is driven by demographic shifts and urbanisation. As the market evolves, investors are selecting strategies that align with each market’s fundamentals and regulatory environment.
