Singapore’s CapitaLand Investment (CLI) recently published a new research report detailing its views regarding growing opportunities for wellness real estate in Southeast Asia.

The report also touched upon current structural trends supporting the rapid growth of this sector.
Among the concepts featured in the report are the rise of ageing societies within the region, as well as its growing overall affluence.
It was also noted that real estate developers are incorporating wellness-focused designs and construction practices, including wellness-related amenities and services in their properties.
That can be construed as proof of SEA’s appeal in terms of climate, culture, and relatively lower service sector costs, making it a premier destination for medical tourism.
Markets like Thailand, Malaysia, and Singapore offer advanced medical facilities, skilled healthcare professionals, and competitive prices that attract international patients, developing reputations for excellence in specific fields.

Opportunities for sectoral investment

At the same time, investors are increasingly attracted to wellness real estate that integrates living and healthcare elements.
In 2023, the absolute investment volume of wellness real estate reached US$221 billion.
Comparing average transaction volumes from 2019 to 2023 and 2014 to 2018, APAC real estate with living and healthcare components saw the largest increase at 32 percent, surpassing the Americas at 29.2 percent and EMEA at 23.2 percent, indicating significant growth potential in APAC.
Investment strategies for living and healthcare-related real estate vary based on investor risk appetite, control preferences, and holding periods.
In SEA, the living sector is more institutionalized than the healthcare sector.
Operators in SEA are expanding to meet the growing demand for healthcare and wellness services, often through strategic partnerships, infrastructure investments, and mergers and acquisitions.
These trends present attractive investment opportunities where real estate asset owners typically entrust the operation of their assets to established healthcare or wellness operators through master lease arrangements, ensuring professional and efficient management.