Korea trails only Australia-New Zealand, Japan and Singapore
Monthly rent deals double in decade, drawing institutional interest
South Korea has ranked fourth among preferred residential real estate investment destinations for institutional investors in the Asia-Pacific region, according to a new industry survey.
The "2026 APAC Residential Investor Survey" by global real estate consultancy Cushman & Wakefield, released Thursday, placed South Korea behind Australia and New Zealand, Japan, and Singapore.
The survey was conducted for the first time this year.
South Korea's rising appeal reflects the accelerating shift from jeonse — a lump-sum deposit rental system — to monthly rent arrangements, which is broadening the base of institutional-grade residential products capable of generating regular rental income.
"Monthly rent transactions in Seoul have more than doubled compared with a decade ago," Cushman & Wakefield said in the report. The firm added that Seoul has become one of the most active co-living markets in the Asia-Pacific region, driven by the growth of single-person households, high housing costs, and rental demand from international students and foreign professionals.
Global pension funds, sovereign wealth funds and private equity fund managers have responded by expanding their exposure to the domestic residential market through rental housing investments and the conversion of existing assets to residential use.
Some 85 percent of survey respondents said they plan to increase their allocation to the residential sector over the next five years. Total projected investment in the APAC residential sector over that period is estimated at $33.2 billion.
lucky@heraldcorp.com
