Video Channel

Hello and welcome. I’m Catherine Chen, Investment Strategist at Invesco Real Estate for Asia Pacific. In this podcast, we’ll explore why Asia Pacific stands out as a compelling destination for real estate investment. We’ll dive into the region’s resilient economic growth, dynamic trade flows, attractive valuations, and highlight the sectors we may find promising.

Let’s take a closer look at the macro backdrop of Asia Pacific. Amid ongoing global geopolitical tensions, we see compelling opportunities across the region—particularly where policymakers are actively supporting growth to cushion the impact of U.S. trade tariffs.

Even prior to the shift in global trade landscape, Asia Pacific had already established itself as a powerhouse in the global economy, currently contributing around 44% of global GDP1. This year, the region is expected to drive over 60% of global economic growth2. Looking ahead, economic momentum is projected to accelerate, with APAC’s GDP projected to be nearly 50% larger than that of the U.S. within the next decade3. While near-term growth may moderate, the region’s underlying fundamentals remain resilient — anchored by the solid economic foundations and proactive fiscal and monetary policy responses.

123Source: Oxford Economics as of April 2025.There is no guarantee that the projection will be reached.

Zooming in on the region, the evolving nature of trade in Asia Pacific continues to support real estate growth. Services trade is gaining momentum, now employing over half of Asia’s workforce. As service industries expand, so does the demand for real estate — from office spaces to logistics hubs and data centers. At the same time, rising urban incomes and greater mobility are fueling housing demand. 

Importantly, this transformation is attracting increasing investment volumes of cross-border capital. Strengthening economic ties within the region have laid the groundwork for deeper investment activities, with international investors actively deploying capital into key APAC markets. Over the past decade, cross-border real estate transaction volumes have surged, underscoring the region’s growing appeal and diversification benefits for global real estate portfolios.

Turning to valuations, Asia Pacific’s diverse and less correlated markets have generally seen capital values lag behind other regions. 

However, as valuations in other markets begin to bottom out—and select APAC sectors are already showing signs of stabilization—combined with a declining interest rate environment, we believe capital values in the region are approaching a trough. This is a timely opportunity for investors looking to capitalize on recovery and may optimize long-term returns.

In terms of sectoral opportunities, we find the living sector and select specialty sectors particularly attractive right now. We are positive on the living sector in Australia, Japan, Korea and China, and see good potential in Korea’s data centers. When evaluating residential housing, we take a granular approach – analyzing demographic trends to identify cohorts with the most pronounced demand-supply imbalances. We then partner with the right operators to strategically scale businesses that address these gaps and deliver longer term value.

Thanks for listening. You can learn more about Asia Pacific real estate by downloading our white paper. 

Stay tuned for our upcoming piece, where we’ll dive deeper into our living strategy across the region.

Thank you.

South Korea has reached a demographic crossroads.

Today, over 20% of its population is over 65, with numbers projected to double by 2050 — marking South Korea as a “super-aged” society.

This surge in the elderly population is creating an unprecedented demand for senior housing and care facilities.

Despite the growing need, South Korea has one of the lowest senior housing penetration rates globally — at less than 1% — compared to 6% in Australia and 11% in the United States. The majority of existing senior care facilities are operated by individual owners.

The severe shortage — in both quantity and quality — of senior living options in Korea is leaving many elderly people without adequate care and accommodation.

Our research also revealed that there are even fewer institutional-quality facilities that cater to seniors in their 70s and 80s who are generally healthy, but may have some mobility issues or non-critical medical conditions.

To address the needs of this growing segment, Invesco embarked on a journey to develop high-quality and thoughtfully designed senior living properties.

As part of this process, we quickly recognized the importance of partnering with an experienced operator that shared our vision to grow with scale, quality, and impact.

Given the highly fragmented nature of the senior care industry, Invesco founded Care Operation — a platform established through a joint venture partnership with Caredoc to directly service the senior living properties within our portfolio.

We chose to partner with Caredoc, one of the top senior care service platform in Korea, due to its vast network and access to caregivers, hospitals, and related facilities nationwide.

Our vision for Care Operation is to create nurturing communities where seniors who value independence and connection feel safe and supported. A place designed with residents in mind, and able to cater to evolving needs.

Wide hallways, step-free access, and age-friendly amenities are all built in to ensure comfort and accessibility.

Around-the-clock on-site caregivers and nurses support daily needs, while responding to any emergencies, providing peace of mind to residents and their families.

Regular health check-ups and preventive care programs — including fitness classes and yoga promote healthy living.

While leisure activities such as art workshops, community gardening, cultural events, and group excursions enhance the community spirit, supporting residents’ physical and social well-being.

Dietary specialists offer residents nutritious meal plans tailored to their individual needs, which residents can enjoy in the privacy of their rooms or in communal dining areas.

Photos of daily activities are also shared with residents’ families, to help families stay connected and give them assurance that their loved ones are healthy, happy and well taken care of.

And 24/7 security, emergency call systems, and manned entry points, ensure residents' safety at all times.

We are committed to meeting the needs of today’s seniors, while building a sustainable model for future generations.

This is more than an investment; it’s a commitment to enhancing the quality of life for South Korea’s aging population and setting an example for other markets facing similar demographic challenges.

Our investment in South Korean senior living is not just addressing a critical societal infrastructure need — we’re building the future we’d want for our grandparents, our parents — and eventually, for ourselves.