Smaller households add pressure to Asia-Pacific housing supply

Smaller households add pressure to Asia-Pacific housing supply

Asia Pacific: Private developers and governments across the Asia-Pacific region are facing challenges in meeting housing demand as the rise of smaller households increases the need for individual units, even in cities with limited population growth. Industry experts have called for faster construction, streamlined approval processes, and an expansion of rental housing markets to address the shortfall. A study by the Urban Land Institute (ULI) found that in 2024 only seven of 51 market segments in the region offered attainable housing, defined as homes priced at five times the median income or less. Cities such as Singapore, Melbourne, and Kuala Lumpur remain relatively more affordable, with Singapore’s extensive supply of public housing cited as a key factor.

Experts noted that housing affordability is often shaped by high-income earners, pushing lower-income households out of the market. In South Korea, housing in provincial cities is more affordable, but Seoul remains costly due to high population density and limited public housing supply. Streamlining planning approvals and reducing project timelines were highlighted as measures that could lower costs. Expanding rental housing is also seen as a potential solution, though unlike Western markets where institutional investors operate large-scale rental properties, the Asia-Pacific region has only limited institutional rental housing available.

Source: Asian Business Review