Senior housing, retail stand out in global property markets: Bedingfield

Quay Global Investors says while others invest in data centres and AI-linked infrastructure, the strongest opportunities are being overlooked.

As investors crowd into data centres and AI-linked infrastructure, Quay Global Investors portfolio manager Chris Bedingfield believes some of the strongest opportunities in listed real estate are emerging in less obvious corners of the market.

Speaking in Sydney, Bedingfield said global listed real estate had become increasingly diversified, spanning sectors from self-storage and student accommodation to life sciences, data centres and senior housing.

Instead, Bedingfield pointed to senior housing in North America as one of the most compelling structural growth stories in global property markets.

"The boomers start turning 80 this year," he said, noting the demographic shift was creating sustained demand for private pay retirement living facilities at a time when new supply remained near 15-year lows.

He said the combination of ageing populations, wealthy retirees and constrained development pipelines had created a "perfect storm" for operators, with rental growth in some senior housing assets reaching as high as 15% to 17% annually.

Unlike other property segments, Bedingfield said senior housing demand was less exposed to macroeconomic swings or policy uncertainty.

"We've learned long ago government risk, or stroke of pen risk," he said, arguing private pay models insulated operators from abrupt regulatory changes.

Bedingfield also argued the market has misguided the long-term outlook for bricks-and-mortar retail.

After years of predictions e-commerce would hollow out shopping ventures, he said many retailers were now returning to physical stores after discovering online-only models left them vulnerable to dominant platforms such as Amazon.

Global shopping centre occupancy rates have since tightened sharply, while new retail supply remains limited.

At the same time, Bedingfield said residential property markets globally continued to grapple with elevated construction and labour costs, constraining new supply despite strong housing demand.

He said these dynamics were reinforcing the appeal of established residential assets, particularly in markets facing persistent housing shortages and demographic tailwinds.