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Residential Real Estate Leases - Southeast Asia

Southeast Asia

In Southeast Asia, the Residential Real Estate Leases market market is anticipated to witness significant growth.
By 2024, the revenue of this market segment is projected to reach a staggering US$224.50bn.
House Leases, in particular, dominates this market with a projected market volume of US$177.80bn in 2024.
Looking ahead, the revenue is expected to exhibit a steady annual growth rate (CAGR 2024-2028) of 4.47%.
This growth will result in a market volume of US$267.40bn by the year 2028.
In Singapore, the demand for high-end residential real estate leases remains strong, driven by expatriates and wealthy locals.

Key regions: France, United Kingdom, Australia, Japan, China

Market

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Region comparison

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Analyst Opinion

The Residential Real Estate Leases market in Southeast Asia is experiencing significant growth and development.

Customer preferences: In recent years, there has been a notable shift in customer preferences towards renting rather than buying residential properties. This can be attributed to several factors, including changing lifestyles and a desire for flexibility. Many individuals and families are opting to rent homes instead of committing to long-term mortgages, as it allows them to have more freedom and mobility. Additionally, renting provides an opportunity to live in desirable locations without the high costs associated with purchasing a property.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Southeast Asia is the rise of co-living spaces. These are shared living arrangements where individuals rent private bedrooms but share common areas such as kitchens and living rooms. Co-living spaces are particularly popular among young professionals and expatriates, as they offer a sense of community and convenience. This trend is driven by the increasing number of people relocating to urban areas for work or study, who are seeking affordable and flexible housing options. Another trend in the market is the growing demand for serviced apartments. These are fully furnished apartments that are rented on a short-term basis, typically for a few weeks to a few months. Serviced apartments cater to the needs of business travelers, tourists, and individuals who require temporary accommodation. The convenience and amenities offered by serviced apartments, such as housekeeping services and access to facilities like gyms and swimming pools, make them an attractive option for those seeking a comfortable and hassle-free stay.

Local special circumstances: The Residential Real Estate Leases market in Southeast Asia is influenced by unique local circumstances in each country. For example, in Singapore, where land is scarce, there is a strong demand for high-rise apartments and condominiums. The government has implemented policies to regulate the rental market and ensure affordability for locals, which has led to a steady supply of rental properties. In Thailand, the market is driven by the growing tourism industry. Many property owners in popular tourist destinations such as Bangkok and Phuket are capitalizing on the influx of visitors by renting out their properties on a short-term basis. This has created a vibrant market for vacation rentals and Airbnb-style accommodations.

Underlying macroeconomic factors: The development of the Residential Real Estate Leases market in Southeast Asia is supported by several macroeconomic factors. Economic growth in the region has led to an increase in disposable income, allowing more people to afford rental properties. Additionally, urbanization and population growth have created a demand for housing, both for long-term residents and temporary residents such as expatriates and students. Furthermore, the rise of digital platforms and online marketplaces has made it easier for landlords and tenants to connect and transact. Websites and apps dedicated to property rentals have streamlined the process, making it more convenient for both parties involved. This technological advancement has contributed to the growth of the Residential Real Estate Leases market in Southeast Asia. In conclusion, the Residential Real Estate Leases market in Southeast Asia is experiencing growth and development due to changing customer preferences, emerging trends such as co-living spaces and serviced apartments, local special circumstances in each country, and underlying macroeconomic factors such as economic growth and urbanization. As the market continues to evolve, it is expected to provide a range of housing options to cater to the diverse needs and preferences of residents and visitors in the region.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.