Australia’s Living sector tops investor wish list: Cushman & Wakefield
Australia’s institutional living sector has emerged as the most sought-after real estate asset class among investors, ranking ahead of office, industrial and logistics assets as capital chases exposure to the nation’s chronic housing undersupply and resilient rental growth.
According to Cushman & Wakefield’s latest APAC Living Investor Survey 2026 Australia Spotlight, Australia and New Zealand ranked as the most preferred Living investment destination across the Asia-Pacific region, ahead of Japan, highlighting the growing appeal of living-sector investments ranging from build-to-rent and student accommodation to co-living and seniors housing.
Yet while investor demand is abundant, developers and investors continue to face a familiar challenge: finding viable opportunities to deploy capital.
The survey found more than half of diversified investors ranked living assets as their preferred Australian real estate sector, ahead of industrial and logistics, office, hotels and retail. At the same time, 76 per cent of investors are targeting multiple living subsectors, underlining growing conviction in the broader residential investment theme rather than any single niche.
For all the enthusiasm surrounding the sector, investors remain acutely aware of the obstacles confronting new development.
Feasibility concerns were identified as the biggest barrier to investment by 40 per cent of respondents, followed by planning approvals and complexity, cited by 28 per cent.
Tax settings and a shortage of investable stock were also highlighted as significant impediments (continues below).
“Investors are sending a clear signal that they want greater exposure to Australia’s living sectors, but enthusiasm alone doesn’t create investment opportunities,” said Josh Rose-Nokes, Director, Living Research, APAC at Cushman & Wakefield and author of the report.
“Demand for rental housing remains exceptionally strong and institutional capital is ready to deploy; however, feasibility constraints, planning delays and limited stock continue to restrict the market’s ability to meet that demand. The challenge now is creating more pathways to deliver investable product at scale.”
Sydney emerged as the standout destination among investors, attracting interest from every survey respondent despite having significantly less completed institutional living stock than Melbourne.
Brisbane also attracted strong interest, while Melbourne remained highly regarded despite already hosting a larger share of completed build-to-rent and purpose-built student accommodation supply.
For a copy of the report, contact Josh Rose-Nokes at josh.rosenokes@cushwake.com
