深度报告-2026-07-22-莱坊-From_Niche_to_Core_Why_Asia-Pacific_Living_Sectors_are_Ente_July_2026_37页_4mb

报告摘要

Summary of From Niche to Core: Why Asia-Pacific Living Sectors are Entering the Mainstream

Core Content

The report From Niche to Core: Why Asia-Pacific Living Sectors are Entering the Mainstream by Knight Frank Asia-Pacific Horizon highlights the growing prominence of living sectors in the Asia-Pacific (APAC) region, which are transitioning from niche to core investment opportunities. It outlines the evolving investment landscape, key drivers, emerging opportunities, and the investor roadmap for the sector.

Main Points

Rising Investment Activity: APAC living sectors have seen a significant increase in investment volumes, nearly tripling from 2016 to 2025, reaching US$21.0 billion. In 2025 alone, there was a 49% surge, driven by improved financing conditions and rising cross-border interest.
Shift from Niche to Core: What was once a Japan-centric market is now a more diversified, regional opportunity. Living sectors are increasingly viewed as a core, long-duration asset class for global investors, offering both income stability and capital growth potential.
Defensive Characteristics: The sector is gaining traction due to its defensive nature, supported by needs-based demand such as urbanisation, demographic shifts, and affordability constraints, which are less susceptible to macroeconomic and geopolitical volatility.
Strategic Evolution: Investors are moving away from isolated strategies and building integrated platforms that span PBSA, BTR, co-living, and senior housing. This allows for operational synergies and efficient capital deployment.
Adaptive Reuse as a Strategy: With rising construction costs and limited rental upside from new developments, adaptive reuse is becoming a key strategy. It involves repurposing existing assets such as residential blocks, offices, and hospitality properties into rental housing, co-living, or senior housing formats, offering shorter delivery times, lower regulatory risk, and ESG alignment.
Operator-Driven Models: Institutional investors are increasingly partnering with specialist operators to manage leasing, tenant experience, and asset performance. This shift reflects a move from passive ownership to operationally active investing, especially in fast-paced living sectors with high turnover.
Blurring of Asset Types: The boundaries between multifamily, co-living, and student housing are becoming more blurred. These formats are converging into a broader living sector defined by flexibility, rental demand, and service-led offerings. This trend allows investors to diversify within a single platform and optimise occupancy across segments.

Key Opportunities

Co-living for Millennials and Beyond: Co-living is gaining popularity as a lifestyle and community-driven alternative, especially for young professionals and students. It offers flexible lease terms, shared amenities, and cost savings compared to traditional housing. In Sydney, co-living can deliver up to 20% savings through bundled services and shared facilities.
Senior Housing: As the region’s population ages rapidly, especially in Japan, South Korea, and Hong Kong SAR, the demand for senior housing is growing. However, supply remains limited, and the sector requires operational expertise and regulatory navigation. Australia and Japan are the most mature markets, while South Korea is emerging as a growth opportunity due to supportive government policies.
India as the New PBSA Frontier: India is poised to become a major player in the Purpose-Built Student Accommodation (PBSA) market, driven by the world's largest student cohort (155 million individuals aged 18–23) and expanding higher education infrastructure. The country is also seeing a rise in offshore campuses, which is increasing the need for student housing. The sector benefits from supportive education policies and is expected to attract growing institutional capital.

Investor Roadmap

Market Gap Analysis: The report highlights the gap between existing institutional living stock and addressable demand, which varies across markets. In less institutionalised markets like Seoul, there is significant undersupply of professionally managed rental housing, creating expansion potential. In more mature markets, opportunities are focused on addressing lifestyle preferences and supply gaps across price-income segments.
Operational Sophistication: As the market matures, operational performance is becoming a key driver of returns. Investors are advised to focus on market selection, local partnerships, and effective asset management to capitalise on the sector's growth.
Institutional Exposure: Despite APAC housing sectors accounting for just 12% of global funds in 2025, the region holds 60% of the world's population, suggesting a significant under-allocation. As policies, transparency, and investment avenues improve, the sector is expected to see increased institutional interest.

Conclusion

The Asia-Pacific living sectors are transitioning from niche to core, driven by demographic shifts, urbanisation, and affordability constraints. With rising demand for rental solutions, evolving investor strategies, and increased institutional participation, the sector is becoming a defensive, income-generating, and scalable asset class. The future of co-living, senior housing, and PBSA in India presents new growth opportunities, supported by operational innovation and strategic diversification. As the market continues to mature, the ability to selectively scale portfolios and enhance operational platforms will be critical for investors seeking to capture both income stability and capital growth.