Residential Real Estate - Eastern Asia

The Residential Real Estate market market in Eastern Asia is expected to reach a staggering US$138.80tn by 2024.
This projection indicates a promising future for the market segment in the region.
Furthermore, it is anticipated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 1.99%, resulting in a significant increase in market volume to US$153.20tn by 2029.
These numbers highlight the potential for continued expansion and development within the Residential Real Estate market sector.
When compared to other countries on a global scale, China is expected to dominate the market, generating a substantial value of US$112.9tn in 2024.
This reflects China's position as a major player in the Residential Real Estate market industry and underscores the country's significant contribution to the overall market.
In Japan, the residential real estate market is experiencing a surge in demand for compact and energy-efficient homes.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Eastern Asia is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this upward trajectory. Customer preferences in Eastern Asia are driving the demand for residential real estate. As the region continues to urbanize and populations grow, there is a rising need for housing. Additionally, there is a cultural preference for homeownership in many Eastern Asian countries, which further fuels the demand for residential properties. One of the key trends in the market is the increasing popularity of high-rise condominiums and apartments. Limited land availability in densely populated cities has led to vertical expansion, with developers focusing on building taller residential buildings. These high-rise properties offer a solution to the growing demand for housing while maximizing land usage. Furthermore, these developments often come with modern amenities and facilities, attracting buyers who seek convenience and a luxurious lifestyle. Another trend in the market is the rise of sustainable and eco-friendly residential properties. Eastern Asian countries are increasingly prioritizing environmental sustainability, and this is reflected in the real estate market. Developers are incorporating green building practices, such as energy-efficient designs, renewable energy sources, and eco-friendly materials. These sustainable properties not only appeal to environmentally conscious buyers but also align with government initiatives to reduce carbon emissions and promote sustainable development. Local special circumstances also play a role in the development of the residential real estate market in Eastern Asia. For example, in countries like Japan and South Korea, where the population is aging rapidly, there is a growing demand for senior-friendly housing. Developers are adapting to this demographic shift by constructing residential properties that cater to the needs of older adults, such as barrier-free designs, healthcare facilities, and communal spaces for social interaction. Underlying macroeconomic factors further support the growth of the residential real estate market in Eastern Asia. Favorable interest rates and government policies that encourage homeownership, such as tax incentives and subsidies, make property investment attractive. Additionally, strong economic growth in the region has led to rising incomes and increased affordability, allowing more individuals to enter the housing market. In conclusion, the Residential Real Estate market in Eastern Asia is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for housing, especially high-rise condominiums and sustainable properties, is on the rise. Factors such as aging populations and government initiatives also contribute to the evolving market landscape. With favorable economic conditions and supportive policies, the residential real estate market in Eastern Asia is poised for continued growth in the coming years.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Eastern Asia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Methodology

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