Source: COMMO.
Date: 9 July 2026
Australian real estate private credit is attracting attention and capital from the ASEAN region as investors seek reliable income and increased diversification amidst global headwinds, according to the latest whitepaper research from specialist real estate private credit investment manager, Zagga.
Research shows ASEAN investors are bullish on private credit with 49 percent planning to increase exposure – 10 percent higher than the global average- with Zagga’s growing client base comprising sophisticated individuals, family offices, and institutions from across the ASEAN region.
Commenting on this growing interest, Zagga CEO and Co-Founder, Alan Greenstein, whose firm has deployed more than $3 billion in funding to Australian real estate on behalf of global investors, said Australia’s stable, insular economy and the strong fundamentals of the local property market were continuing to attract offshore capital.
“Australia is undoubedtly a very credible destination for capital, with ASEAN investors recognising the investment potential on their doorstep,” Mr Greenstein told COMMO.
“Traditionally, investors across the region have favoured the US and UK, but they are nowstarting to better grasp the benefits of diversifying beyond mature, saturated global markets and exploring other facets of private credit, like real estate, which offer a unique risk-return profile.
“Global capital needs a home, and with heightened uncertainty, investors are focusing on markets underpinned by strong institutional frameworks and enduring demand drivers. Australia’s residential property market, including secondary markets, is valued at $12 trillion, making it one of the largest and most established asset classes in the region.”
Today, private credit accounts for 18 percent of Australia’s commercial real estate debt market, compared to 37 percent in the UK and 55 percent in the US. Now valued at ~$235 billion in AUM, the Australian private credit market has achieved a compound annual growth rate (CAGR) of 21 percent over the last decade, compared with ~5 percent for bank debt and bonds.
“Investors are able to see opportunity through the uncertainty. While global conditions remain challenging, Australia continues to benefit from long-term demographic and property market drivers that support the ongoing evolution of our private credit market.
“Private credit is no longer a niche asset class but an increasingly important source of commercial real estate financing and a recognised component of many diversified investment portfolios.
“When we look at other established markets, globally, we can see the private credit opportunity in Australia is still maturing, which, combined with supportive long-term drivers, suggests there remains meaningful scope for further growth.”
In response to rising regional inflows, Zagga has marked its ninth anniversary with the launch of an educational whitepaper series, which aims to help investors throughout the ASEAN region better understand the Australian real estate private credit opportunity.
The whitepaper, Opportunity through uncertainty, deep dives into the changing investment landscape, risks and opportunities in global private credit, why Australia continues to attract offshore attention, and the importance of governance and risk management for those exploring private credit.
“The global search for stability is on,” Mr Greenstein said. “In this environment, diversification and downside protection are becoming harder to come by and private credit, especially backed by quality, real assets, can be an attractive addition to portfolios.
“Yet, real estate private credit is not a homogenous asset class and the opportunities are vast and varied. Investors must do their due diligence - understand how their capital is invested, where it is being deployed, who is managing it (experience and track record), and what risks are associated.
“As an industry, we have a responsibility to act with transparency, ensuring our investors can access and understand this detail. This whitepaper series aims to complement our existing investor resources and affirm our unwavering commitment to transparency, trust, and partnership – values on which our business was founded.”
With its global investor base now exceeding 1,000 entities, Zagga is strengthening its regionalpresence. This includes the appointment of Roushana Sjahsam as Senior Board Adviser, ASEAN. Accredited Investors may access Zagga’s Australian commercial real estate private credit strategy, in their local currency, via the Zagga Real Estate Credit Fund (ZRECF), a Singapore Variable Capital Company (VCC) managed by JAR Wealth Management Pte Ltd.
