South Korea Ranks Fourth Among APAC's Preferred Living Investment Destinations as 85% of Investors Plan to Increase Sector Allocation
- Nearly three-quarters, of respondents are actively considering repositioning or change-of-use strategies Shift from jeonse to wolse and growth in single-person households strengthen the foundations for institutional rental housing and co-living demand in South Korea
- Seoul emerges as one of APAC's strongest co-living demand stories, supported by affordability and demographic trends
- Global pension funds, sovereign wealth funds and private equity investors increasingly entering South Korea through platforms, conversions and rental housing strategies
SEOUL, 27 August 2026 – South Korea ranked fourth among APAC's preferred Living investment destinations in Cushman & Wakefield's inaugural APAC Living Investor Survey 2026. Ranked behind Australia/New Zealand, Japan and Singapore, South Korea continues to strengthen its position as an increasingly attractive Living investment market, supported by evolving rental housing dynamics, changing demographic trends and increasing institutional participation.
The survey also found that 85% of investors plan to increase Living investment over the next five years, with respondents collectively indicating an estimated US$33.2 billion of deployment into the APAC Living sector over the same period.
<Preferred APAC Living Investment Destinations>
Source: Cushman & Wakefield
Jeonse-to-Wolse Transition Supports an Institutional Rental Model
South Korea’s ongoing shift from jeonse, a large lump-sum deposit lease structure, to wolse, a monthly rental model, is creating a more conventional recurring-income framework that is increasingly aligned with institutional investment requirements.
According to Josh Rose-Nokes, Director, Living Research, APAC at Cushman & Wakefield, monthly rent transactions in Seoul have more than doubled compared with a decade ago, reflecting the continued evolution of Korea's rental housing market.
"South Korea's Living sector is increasingly attracting institutional interest as the rental market evolves. The ongoing transition from jeonse to wolse, coupled with strong demographic and affordability drivers, is helping create a more investable environment for domestic and international capital,” Josh added.
Strong Co-living Demand and Growing Institutional Capital in Seoul
As co-living emerged as the second most targeted Living segment across APAC, Seoul represents one of the region’s strongest co-living demand stories. This demand is supported by housing affordability challenges, growth in single-person households, and increasing numbers of overseas students and professionals seeking flexible rental options.
Institutional capital has already begun entering South Korea’s Living sector, with global pension funds, sovereign wealth funds and private equity investors deploying capital through platforms, conversions and rental housing strategies. The discussion is increasingly shifting from whether institutional capital will enter the sector to how quickly institutional-grade opportunities can be scaled.
APAC Investors Remain Highly Committed to the Living Sector
The survey found that Living is becoming an increasingly important real estate allocation across the region, supported by resilient demand fundamentals and investor preference for stabilised, income-producing assets. Notably, a third of respondents with diversified real estate portfolios expect Living to account for more than 30% of their real estate portfolio within five years.
<Expected Living Investment Over the Next Five Years>
Source: Cushman & Wakefield
Conal Newland, International Director, Head of Living, APAC at Cushman & Wakefield, said:
“Our inaugural APAC Living Investor Survey reinforces the growing institutionalisation of the sector across the region. Despite heightened economic and geopolitical uncertainty, investors continue to view Living as a long-term strategic allocation supported by resilient demand fundamentals, defensive income characteristics and strong structural growth drivers. The fact that 85% of respondents intend to increase Living investment over the next five years highlights how Living is evolving from an alternative investment strategy into a core institutional real estate allocation.”
Demand for Stabilised Assets Outpaces Supply
The survey also found that investors are increasingly favouring stabilised, income-producing and defensive Living assets. Recent market volatility has prompted 50% of respondents to report a greater preference for stabilised assets, yet the availability of standing institutional-grade stock remains limited across much of APAC.
This supply-demand imbalance is increasingly pushing investors towards alternative routes to market. Nearly three-quarters, or 73%, of respondents are actively considering repositioning or change-of-use strategies, while joint ventures emerged as the most likely deal structure over the next one to three years.
The gap between buyer and seller expectations was identified as the leading investment challenge by 44% of respondents, followed by development viability at 29%. Limited transaction evidence and inconsistent market transparency were also highlighted as barriers to pricing assets accurately and deploying capital efficiently.
In this environment, markets capable of delivering institutional-grade Living assets at scale are likely to remain well positioned to attract capital. South Korea's evolving rental housing market and growing institutional participation continue to support its long-term investment appeal.
About the Survey
The inaugural APAC Living Investor Survey 2026 draws on insights from institutional investors, fund managers, listed property groups and specialist Living-sector participants across APAC, representing approximately 224,000 units or beds. For the purposes of this survey, diversified respondents refer to investors with exposure across multiple real estate sectors and exclude Living-only specialists. The survey was fielded in Q2 2026 during the Middle East hostilities and provides insights into investor sentiment, capital allocation trends and investment priorities across the APAC Living sector. Estimated five-year capital deployment figures were derived from banded responses using midpoints.
For more information and to download the report, please click here.
Cushman & Wakefield’s Living platform provides integrated advisory services to investors, developers, and operators across the residential investment spectrum, including multifamily, build-to-rent, purpose-built student accommodation, co-living, and senior living. The team delivers integrated advisory across capital markets, valuation, development consultancy, and asset strategy, supported by proprietary research and a region-wide Asia Pacific network, as well as dedicated research and consultancy professionals who provide strategic insights and execution capabilities across the region. Click here for additional information.
