From Vacancy to Vibrancy to Value

Unlocking Value Through Senior Living Conversions in APAC

The Asia-Pacific (“APAC”) Senior Living sector exhibits a dramatic supply/demand imbalance. The region faces a significant shortfall, with just three core markets — India, Thailand and South Korea — requiring over 6 million beds to achieve just 5% market penetration. This need translates directly into high potential returns, with assets generating yields approximately 3% higher than traditional multifamily assets.

This lucrative potential is accompanied by significant operational demands. Senior housing is among the most unforgiving corners of commercial real estate, with some global players being forced to offload holdings at discounts as high as 70% compared to the original purchase price. Yet, success is both possible and highly rewarded, as demonstrated by early movers, some of whom have realised returns of more than 3x on exit after less than 6 years.

These diametrically opposed outcomes emphasise that employing a specialised operational strategy is indispensable. In our experience, a spectrum of necessary operational structures, from low-involvement models to comprehensive care, is necessary to align risk with capability.

Emerging Platform Archetypes

Depending on an investor’s strategy, there are different risk/reward profiles available to capitalise on the growth of senior living in APAC. Investment structures fall into three main archetypes:

  • Asset-Light (Traditional Lease): Provides long-term, stable rental income and reduces operational risk.
  • Contact-Light (Service-Light, Tech-Enabled): Leverages digital health tools for tech-enabled operational efficiencies and resident care.
  • Full Service (Comprehensive Care Facilities): Enables higher lifetime value across the entire aging journey and offers cost efficiencies via shared amenities and staff.

Maximising Margin in Senior Living Platforms

The most successful operators commonly deploy one or more levers to boost yield. Depending on the platform archetype adopted, investors can capture varying degrees of this benefit, but it is essential to consider how these factors are enabled or enhanced for the operating company, whether as a traditional landlord (Archetype 1) or an owner-operator (Archetypes 2 and 3):

  • Diversify New Revenue Streams: Diversifying revenue streams, including tech solutions and subscription services. Providing higher yield revenue streams and enhanced lifetime value of guests.
  • Attract the Best Talent: The ability of assets to differentiate the operator in the war for talent. Assets capable providing operators a USP will command higher rental returns and occupancy.
  • Tech-Driven Innovation: Mitigate the labour shortage and enhance guest experience through modern tech solutions which automate operations, enhance community and enable more efficient facility management.
  • Adapt to Cultural Dynamics: Scale and standardisation can deliver margin growth, however balancing efficiency with cultural diversity is essential to successful platform development in APAC.

The impact of each lever will depend on the platform archetype. As an investor it is essential to focus on the levers that will deliver the greatest value return. Asset-Light models typically prioritise partnering and outsourcing levers to minimise operational risk, while Full-Service models maximise value by investing in talent and tech integration.

Conversion as an Entry Route Into APAC Senior Living

While the market remains fragmented, we have seen some early mover advantages for investors willing to deploy patient capital. One effective strategy is brownfield conversion. With significant trapped capital and underperforming assets in the region, conversion emerges as a preferred scaling strategy. Independent of archetype, this strategy unlocks faster time-to-market and lower CAPEX requirements compared to greenfield development.

Conversions can achieve CAPEX savings of up to 56% compared to new construction and offer a significantly faster time-to-market, often cutting development timelines by around 25%. This strategy suits prime urban locations where demand is greatest and it is essential for targeting the high-end, private-pay segment driving growth in the region.

Final Thoughts

The APAC Senior Living sector is not just a housing play; it is a social infrastructure investment defined by high yield potential but demanding specialised operational capacity. Investors with a clear operational roadmap and a strategy can leverage the $40 billion brownfield opportunity and build durable, scalable platforms and, potentially, capture high returns.

Download the full report today to gain deeper insights into the APAC senior living sector, including details on the operational and strategic levers for scalable growth, and discover why brownfield conversions are the most effective pathway to fast-track market entry, how they mitigate risks, and hold the potential to capture value in this accelerating real estate segment.

Related Insights

Related Information

Published

November 27, 2025

temp Key Contacts

Alexander Marx

Managing Director

Nicki Doyle

Senior Managing Director

Downloads

Most Popular Insights

  1. Navigating Tariffs: 10 Strategies to Protect the Bottom Line
  2. The Hidden Risk for Data Centers That No One is Talking About
  3. It’s La La Land Again in Financial Markets
  4. Geopolitical Risk Management: No Longer Just a “Nice to Have”, But a Corporate Imperative
  5. Corporate Sustainability Report

Sign up to get access to FTI Consulting Insights

Subscribe