For ultra-high-net-worth investors ( UNHWIs ) focused on real estate, the “senior living” sector in Asia-Pacific is at a tipping point, with mature markets such as Australia offering opportunities in consolidation and pipeline development, while emerging markets like South Korea provide opportunities in terms of unmet demand, government support, and potential for consolidation.

“Senior living” is a sub-sector of the residential real estate market that encompasses residential options and communities designed for older adults, ranging from independent living with social activities to assisted living providing daily support, to memory care and skilled nursing facilities offering specialized medical care.

For investors, senior living is essentially less of “pure real estate” and more of a hybrid of property, healthcare, and hospitality, making it potentially more profitable and resilient, but also more complex and risk-intensive compared to traditional residential assets.

However, while the senior living sector offers high-income potential and a compelling hedge against demographic-driven demand, especially in mature markets like Australia, it demands operational expertise, patience, and the ability to navigate complex regulation and development challenges.

As an investment sector, senior living is much more mature in the United States and Europe than in Asia, where it remains relatively nascent, with only two real estate fund managers announcing initiatives for UNHWI investments so far this year. Invesco Real Estate has launched senior living projects in Australia and South Korea, and Warburg Pincus has rolled out a project under the sector in South Korea this year.

Although other fund managers and investors have also announced moves into the "living" ( a broad term covering the entire residential sector ) or "senior housing" ( real estate assets designed for older adults, typically 55-years or older, with varying levels of care but still part of the housing sector ) space, the ones by Invesco and Warburg Pincus are the most direct, "senior living" specific announcements so far in 2025.

While these recent strategic acquisitions and targeted market entry into senior living across Australia and South Korea indicate the investment potential in these markets, these two countries are at different stages of sector development but united by common demand dynamics.

Market offerings

 In August 2025, Invesco Real Estate announced the acquisition of RetireAustralia, one of the largest senior living operators in the country, for A$845 million ( US$558.19 million ).

The portfolio comprises 29 retirement villages across New South Wales, Queensland, and South Australia, featuring over 4,300 independent living units, serviced apartments, and care residences. Importantly, RetireAustralia also brings a robust development pipeline with up to 800 new units planned across seven projects.

For investors, the Australian market offers a combination of scale and stability. Established market players offer proven operational models, while development pipelines provide exposure to future growth. Invesco’s move demonstrates confidence not only in current returns but also in long-term capital appreciation, as demand outpaces supply.

While Australia offers maturity, South Korea represents a nascent but fast-growing senior living market with immense potential. The country is on the cusp of becoming a “super-aged society” in 2025, with more than 20% of its population aged 65 and above.  By 2040, the number of seniors is projected to double. Despite this, South Korea’s senior housing penetration remains strikingly low at just 0.6%, compared to over 11% in the US.

The Korean government is also actively supporting the sector’s growth. Policy measures include deregulation for developers, incentives for seniors to transition into retirement housing, and support for tax-efficient structures such as real estate investment trusts. These initiatives lower entry barriers for institutional investors, paving the way for scalable business models.

In March 2025, Invesco announced a joint venture with Caredoc, a Korean senior care specialist, that allows it to acquire a senior living portfolio consisting of three senior housing properties in the Seoul metropolitan area.

In the same month, private equity manager Warburg Pincus announced a partnership with Korean real estate developer SK D&D, and its investment unit D&D Investment, to invest in three high-quality senior living properties strategically located in Seoul. This partnership will focus on acquiring and developing senior housing for the senior population in the Greater Seoul Area.

Attractive yields

In terms of returns, Australia’s senior living sector provides relatively good earnings. The ICAM Diversified Seniors Living Fund, a fund managed by International Currency Asset Management, a specialist alternative investments fund manager based in South Australia, boasts an actual distribution yield of 7.5% per annum, alongside a 14% internal rate of return ( IRR ) over five years.

Australia's senior living sector has shown resilience and outperformance relative to traditional real estate, averaging 12.8% total returns over the past decade – surpassing traditional asset classes ( e.g., general commercial property, equities, or bonds ) and only trailing niche alternatives like student housing, according to the ICAM Funds report.

This is fuelled by an ageing population ( expected growth in the 65+ age group is pacing the supply of senior living units ), high occupancy, and stable cash flows from long-term residents, contrasting with traditional real estate's exposure to cyclical downturns in office/retail demand as well as residential price volatility, says the report.

In South Korea, return figures for the senior living sector are currently limited as the market is still emerging. Growth potential is strong, but publicly available yield benchmarks are few. On the other hand, general residential rental yields ( not specific to senior living ) range from 2% to 6.57% ( gross ), depending on property type and location. Net yields, after costs and financing, typically sit 1.5–2 percentage points lower, according to data from JLL ( Jones Lang LaSalle ).

In an interview with The Asset, Calvin Chou, head of Asia-Pacific, Invesco Real Estate, says: “Australia leads APAC in senior living maturity, but all markets show substantial upside relative to global benchmarks. Penetration rates remain low across APAC, with South Korea below 1%, Japan under 3%, and Australia around 6%. In comparison, the US senior living penetration rate sits at around 11%, suggesting that the key APAC markets are still in the early stages of adoption and expansion.”