Property consultancy Cushman & Wakefield has highlighted that Japanese investors are increasing their exposure to rental housing across the Asia-Pacific region, with Australia emerging as a key destination for institutional capital seeking long-term income opportunities amid ongoing housing supply shortages.
Japanese investment is also expanding into living markets in Singapore, South Korea and Hong Kong as investors look beyond their domestic market. International Director and Head of Living, APAC at Cushman & Wakefield Conal Newland stated that the sector was entering a new phase of institutional expansion, supported by structural demand for rental housing.
Japanese investment in Australian real estate exceeded $3bnin 2025 and reached over $7bn across the three years to 2025. Cushman & Wakefield estimates that around 30% of this investment was directed towards the Build to Rent sector, highlighting the growing role of Japanese capital in Australia’s institutional rental housing market.
The firm said Australia’s population growth, continued urbanisation and ongoing shortage of housing were contributing to the country’s appeal to Japanese investors. Japan has the most mature and liquid multifamily market in the Asia-Pacific region, while Australia is developing into one of the region’s fastest-growing living markets as housing shortages persist and institutional participation increases.
Japanese investors are not limiting their activity to Australia, however, with capital also being allocated to rental housing opportunities in Singapore, South Korea and Hong Kong. Conal said the approach reflected an emphasis on the underlying long-term fundamentals of rental housing rather than short-term movements in individual property markets.
Housing shortages and sustained rental demand across Asia-Pacific are providing support for increased institutional investment in living assets. Cushman & Wakefield stated this investment is also extending beyond Build to Rent, with institutional capital increasingly considering other forms of rental and residential accommodation, including co-living, purpose-built student accommodation (PBSA) and affordable housing.
In Australia, the continued growth in rents has not removed the underlying imbalance between housing supply and demand. Conal said housing construction continued to fall short of the level required to meet demand, creating an ongoing supply gap.
That imbalance is supporting the potential for long-term rental income growth and contributing to investor confidence in the sector. Cushman & Wakefield expects institutional investors to become increasingly important in the delivery of rental housing across Asia-Pacific as policy settings change and supply constraints continue.
The firm said global investors, including Japanese institutions, were increasingly considering rental housing investments over longer timeframes of five, ten and 20 years.
Persistent housing shortages, demographic demand, resilient rental income and the ability to operate rental housing through scalable platforms are expected to continue supporting the institutionalisation of living markets across the Asia-Pacific region.
For Australia, the increasing involvement of Japanese investors adds to the pool of international institutional capital targeting Build to Rent and other living sectors as the country’s housing supply shortage continues to underpin demand for rental accommodation.
