Property & Real Estate
Rising investor interest in AP private education sector T
he private education market in Asia Pacific is a rising investment spot, driven by the region’s demand for high-quality international schools with a focus on English curricula. That’s according to a new report from property consultancy JLL.
According to the research, Asia Pacific’s private education market is estimated to be worth US$370 billion. The industry has seen a surge in demand from the region’s shifting macro-economic and favourable demographic trends, such as rising household wealth and rapid population growth. “With a burgeoning local middle class, shrinking family sizes and more double-income households, parents are now seeking first-rate academic options taught in English to give their children a leg-up in an increasingly globalised society,” said Noeleen Goh, Director of Alternatives, Capital Markets at JLL Asia Pacific. In Hong Kong, the number of English-medium international schools increased from 92 in 2000 to 177 in 2017 and the number of students more than doubled during this period. Countries without an adequate national English curriculum such as Vietnam, Thailand, Japan and China have also seen a spike in popularity among parents for English-language teaching institutions. “The proliferation of international schools in the region means that competition for students is fierce, so the quality of education is now higher than before. When choosing where to spend tuition fees for their children, parents place a lot of emphasis on an institution’s overall academic reputation, curriculum, teaching quality and even university acceptance,” added Noeleen Goh. JLL’s report also states that international schools in general have shifted their focus to affluent local markets in the face of declining expatriate families on company packages. Countries such as Malaysia and Thailand do not have any restrictions on international school enrolment. Vietnam has also relaxed restrictions in the recent-
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The Link
Issue 4/2018
Noeleen Goh, Director of Alternatives, Capital Markets, Asia Pacific JLL
ly issued Decree 86, allowing an intake of up to 50 per cent of local students. Rising investor interest Investment has been rising among companies that run international schools, which have backing from institutional investors, private equity firms and pension funds.
