We all need a place to live. In Asia Pacific, 4.4 billion people need a place to live. Residential real estate is not only a global asset class but it also represents peoples' homes and thus their hopes and dreams for a better life, and frequently is one of the biggest investments a family will make. With Asia Pacific, home to well over half the global population, the opportunities in this sector are vast. However, unlike in the US and in some parts of Europe, where the "multifamily" or "for-rent" segment is large and contains sizable investable stock, it is only really in Japan where we see that type of market in this region. More typically, the apartment blocks are condominiums with strata-titled ownership, frequently held by a large number of individual investors who may lease the space in the open market. Some apartment blocks for niche populations (expatriates or corporate employees or special populations such as students or the elderly) may exist in Asia Pacific ex-Japan, but this represents a tiny fraction of the overall market. Thus to capture much of the opportunity in this region's residential sector, a strategy of developing the right kind of housing stock in undersupplied markets is needed.
Soucre : CBRE Global Investors