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THINK Asia-Pacific: The untapped demographic dividends of Asia-Pacific cities

THINK: Asia

In our latest 'THINK Asia-Pacific' research report, we find that the relatively favourable demographic dividends of many Asia-Pacific cities make them very attractive for long-term investment.

As a whole, Asia-Pacific nations are ageing at a slower rate than many developed markets in the West, and some cities in the region will also benefit from increased urbanisation, positive net migration and younger, more productive labour forces. These factors will be key drivers for global growth in the coming decades.

It is the gateway cities in Asia-Pacific that will be the strongest economic performers, despite falling national averages. Shanghai, Beijing and Tokyo will spearhead the transformation from West to East. All three are predicted to rank among the top-five global cities with the highest number of middle income households (according to McKinsey).

Whilst robust demographic factors are key to investors, a city’s real estate attractiveness also needs to be underpinned by fundamental economic robustness and competitiveness. This includes: strong rule of law and governance, an attractive tax regime, healthy financial systems and capital markets, excellent infrastructure, a well-educated workforce and a diversified economy. Sydney and Melbourne are good examples of such highly developed and institutional markets; Shanghai and Beijing are also rapidly maturing real estate markets.

Download the full report   THINK: Asia

Harry Tan

Harry Tan

Head of Research, Asia-Pacific

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