Hotel, office conversions increasingly driving Apac living sector supply

Atiqah Mokhtar

/ EdgeProp Singapore

June 23, 2026 1:38 PM SGT

propertyeditor@edgeprop.sg

Light

Dark

Hotels and offices in select markets across the region are being converted into living sector assets including co-living and student accommodation properties (Picture: Savills)

The Asia Pacific (Apac) living sector is seeing more supply from the conversion of hotel and office assets. This comes as distressed sales, office obsolescence and regulatory reform support opportunistic and value-add conversion plays that are drawing investors, according to a June research report by Savills.

The conversions are occurring across the region for different reasons, shaped by the individual landscapes of each market. In Hong Kong, conversions are taking place primarily in the hotel market, where the rise of distressed sales has led to assets being snapped up and repurposed into student housing and co-living properties.

According to Savills, 13 hotel deals worth around HK$6.4 billion ($1.06 billion) have taken place in Hong Kong over the past 12 months, with the vast majority earmarked for conversion. Per-key prices for the transactions ranged from HK$1.6 million to HK$3.1 million, which represent a 30% to 60% discount to the sellers’ original cost.

Over in Australia, B-grade offices in Brisbane are emerging as candidates for conversion, as office values have significantly lagged residential properties over the past three years. For instance, Australian firms Dexus and Marquette Properties recently completed the redevelopment of 41 George Street, a B-grade office tower in the Brisbane CBD, into a 1,180-bed student dorm. The building was acquired from the Queensland Government for A$123 million.

In Seoul, conversions have largely focused on officetel developments — mixed-use buildings that combine the functions of an office and a hotel. Savills says officetel operators are opting to reposition the assets by converting them into co-living assets that generate better returns. In addition, the quasi-residential officetels often require minimal work to be converted, providing a time and cost-efficient alternative to redevelopment.

The conversion of officetels has appealed to investors seeking value-add opportunities, with institutional investors backing specialist operators of converted officetel stock.

At the same time, the conversion of assets into senior living facilities is emerging as the next living sector opportunity in Seoul. For example, in March, Hyundai HAIM Asset Management, an alternative investment firm backed by Hyundai Marine and Fire Insurance, secured a deal to acquire the Mokdong Artist Centre for conversion into a 400-room senior living complex by 2030.

Beyond the opportunistic and value-add plays that are driving conversions, Savills’ report highlights that long-term fundamentals for the Apac living sector remain firmly intact, underpinned by demographic shifts and urbanisation trends.

This, in turn, is prompting investors to deploy other investment strategies across the region, ranging from ground-up developments to platform and direct acquisitions. “Investors are increasingly selecting entry strategies that best match each market's fundamentals, regulatory environment and operating landscape,” says Nicholas Wilson, senior director, strategic research and adviser for Apac capital markets at Savills.

In Singapore, investors are increasingly accessing the living sector through platform acquisitions, such as Hmlet Japan’s purchase of Habyt’s operations in Singapore and Hong Kong, and adaptive reuse.

In Tokyo, investors are opting for ground-up developments and direct acquisitions of multifamily and build-to-rent (BTR) assets, supported by the market’s depth and maturity.

Over in Australia, BTR projects are happening in markets such as Sydney, while the wider market is also seeing active platform acquisitions, particularly in the senior living and student accommodation segments.

Property updates, 24/7.

Subscribe to Newsletter

Market insights, delivered weekly.

Hotel, office conversions increasingly driving Apac living sector supply

Related Articles