Savills APAC Living Sectors Q2 2026 report shares that investors in Asia Pacific’s (APAC) living sector are shifting focus from where to invest to how to invest, as evolving market conditions and changing capital dynamics create new entry routes into the sector.
The latest report identifies five investment strategies shaping the sector, ranging from distressed and adaptive reuse conversions to ground-up development, platform mergers & acquisitions (M&A), and direct acquisition.
Different APAC markets are favouring distinct investment strategies. Japan remains the region's only mature institutional market for stabilised multifamily assets. Supported by transparent pricing, consistent transaction volumes and strong cross-border investor participation, around 35% of the largest multifamily transactions have involved overseas investors, while prime Tokyo multifamily yields remain around 3.0–3.5%.
Australia continues to present opportunities in build-to-rent (BTR) development and office conversions, with strong rental growth underpinning project feasibility despite elevated construction costs. Meanwhile, discounted office assets are increasingly being repositioned into residential uses. One Brisbane office asset was acquired at around 60% below its 2017 cost basis due to its conversion potential, while the conversion of Brisbane's 41 George Street delivered more than 1,180 purpose-built student accommodation (PBSA) beds.
Hong Kong leads the region in hotel-to-living conversions, with 13 hotel transactions worth HK$6.4 billion over the past year, with many older hospitality assets being converted into student accommodation and co-living.
In Singapore, investors are increasingly accessing the living sector through platform acquisitions and adaptive reuse. Recent transactions involving Habyt, The Assembly Place and Coliwoo illustrate investors' growing preference for scaling through platform acquisitions rather than assembling portfolios asset by asset.
While pockets of dislocation across hotels and offices are creating near-term opportunities, Savills highlights that long-term demand fundamentals across the region’s living sectors remain firmly intact, underpinned by demographic shifts and urbanisation trends.
Nicholas Wilson, Senior Director, Strategic Research & Advisor, Asia Pacific Capital Markets at Savills, said: "APAC living is not a single trade. Execution is now the differentiator. Investors are increasingly selecting entry strategies that best match each market's fundamentals, regulatory environment and operating landscape."