Serviced apartments in Asia have shown resilience and now significant growth, despite the last remnants of the economic downturn still affecting other property sectors. SARS may have taken some steam out of the sector, but serviced apartments are increasingly the preferred choice of accommodation for visitors.Property analysts are recognising the emergence of serviced apartments as the new growth property sector in Hong Kong and Singapore, but China leads the way.As in Australia, they are an alternative to petite size hotel rooms, luring short and extended stay visitors with their generous space and reasonable room rates.According to Colliers International, in the first quarter of 2003, thecentage of leased serviced apartments in Hong Kong had jumped to 89%, compared to 62% over the previous five years. With more than half a dozen projects due to start in 2004 and completed by 2007, the number of serviced apartments will be boosted up by 6,777 units.The number of serviced apartments in Singapore has been steady; there is currently a supply of 3,650 serviced units. Of that number, Ascott has an 18% share of the market.Ascott is making its presence felt in China with 1,600 serviced units. It recently announced that number of serviced units will increase to 4,000 units by 2008.China has become the latest target of foreign investors since its admission to the World Trade Organisation in late 2001 and since becoming the host of the 2008 Olympic Games.The Chinese government has implemented foreign investment oriented policies, leading to the deregulation of many industry sectors, opening up the real estate markets to investments by foreign entities.As part of China’s preparation for the Olympics, more than 8,000 serviced units are due to be completed.
Asia's serviced apartment boom
