Asia-Pacific Living Sector Poised for Growth: CBRE Predicts Rise in Student Housing and Serviced Apartments as Traditional Assets Lose Appeal

Student accommodations and fully-furnished apartments are gaining popularity as office spaces and logistics become less attractive, according to CBRE. The company suggests that possible reductions in rates may attract increased investment in the Asia-Pacific region's underfunded residential sector.

The region continues to have underutilized resources that could yield higher profits as investors seek to safeguard against inflation, according to the statement. Increased interest from foreign residents and a low rate of home ownership are also supporting the basic structure of the market, as stated in a report released on Monday.

Properties designed for multiple families, a specific category within the housing market, have emerged as the top choice for investors this year, surpassing previously popular investment options such as industrial and logistical assets and office spaces. It's also been reported that worldwide investment groups are exploring the potential of student housing in places like Hong Kong and Australia.

The market forecast is looking more positive as worldwide central banks gear up to reduce lending rates. There's a strong probability that the Federal Reserve will decrease its target rate by a minimum of 25 basis points on September 18. The Hong Kong Monetary mirrors the Fed's decisions closely due to its connected exchange rate system.

"Possible reductions in interest rates will stimulate investment and merger possibilities," stated Greg Hyland, the chief of capital markets for the Asia-Pacific area, in his analysis. "The housing industry provides a chance for institutional investors and private equity fund managers to broaden their investment range, given its robust market conditions and steadfast demand."