The term serviced apartment seems to be most popular in Australia. According to a research conducted by Google trends, most searches for serviced apartments in the world are concentrated in Australia. With immigrants coming from all across the globe, serviced apartments provide the safest investment options for investors from a foreign land as the returns are quite secure.
Serviced apartments in Australia are available on a short term and long term basis depending upon the requirement. These apartment style properties are fully furnished and equipped with all basic amenities. One of the trends that have been observed in this sector is that business customers commonly use them. This allows the operators of the apartments to have a solid booking throughout the year.
Serviced apartments to overpower the hotel culture
Currently, the returns provided by the serviced apartment are almost equal to the returns offered by the hotel industry. Considering the current popularity of the serviced apartments, it is predicted that the returns in the next three years will rise fast and steadily enough to outperform the hotel industry. While the hotel industry generates 10 percent to 11 percent returns per annum, the serviced apartment industry is geared up to push the margin to 13 percent to 15 percent in just three years. This is because of the current trend in consumer behavior which makes it clear that when offered at a similar price, customers prefer space over location. This trend is also because of the increase in the number of business travelers. These guests account for 50 percent of the occupancy in these serviced apartments.
A new definition of serviced apartments
The current serviced apartments show great maturity in their entire approach. These apartments are professionally managed and provide accommodation from a minimum of three days to a maximum of one year. These apartments come with an on-site management facility which ensures that the building complies with building standards and executes operations necessary to have a smooth functioning accommodation.
These apartments come with sleeping and living areas. In some cases, they also have food preparation and catering services. Services apartments offer a self service laundry service, which is only a recent addition. Daily room servicing facilities are also available when required.
Specialization and segregation
While many new accommodation operators have entered the market, the established companies are turning to serviced apartments as a specialization. Because of this subset, the entire industry has gone through changes that are necessary for business and development. This specialization has provided structures that are entirely different from traditional hotels.
Concentration in Melbourne
This is a very interesting trend in the real estate and the serviced industry market. Melbourne has been credit with being the most livable city in the world and is currently topping all lists including eminent ones like the Economist Intelligence unit. Also being the fastest growing city in Australia, Melbourne is also considered a practical location for most foreign investors and business travelers. This trend is beneficial for any investor who is looking for a sought-after city to get a short term or extended stay option.
Serviced apartments in Australia are available on a short term and long term basis depending upon the requirement. These apartment style properties are fully furnished and equipped with all basic amenities. One of the trends that have been observed in this sector is that business customers commonly use them. This allows the operators of the apartments to have a solid booking throughout the year.
Serviced apartments to overpower the hotel culture
Currently, the returns provided by the serviced apartment are almost equal to the returns offered by the hotel industry. Considering the current popularity of the serviced apartments, it is predicted that the returns in the next three years will rise fast and steadily enough to outperform the hotel industry. While the hotel industry generates 10 percent to 11 percent returns per annum, the serviced apartment industry is geared up to push the margin to 13 percent to 15 percent in just three years. This is because of the current trend in consumer behavior which makes it clear that when offered at a similar price, customers prefer space over location. This trend is also because of the increase in the number of business travelers. These guests account for 50 percent of the occupancy in these serviced apartments.
A new definition of serviced apartments
The current serviced apartments show great maturity in their entire approach. These apartments are professionally managed and provide accommodation from a minimum of three days to a maximum of one year. These apartments come with an on-site management facility which ensures that the building complies with building standards and executes operations necessary to have a smooth functioning accommodation.
These apartments come with sleeping and living areas. In some cases, they also have food preparation and catering services. Services apartments offer a self service laundry service, which is only a recent addition. Daily room servicing facilities are also available when required.
Specialization and segregation
While many new accommodation operators have entered the market, the established companies are turning to serviced apartments as a specialization. Because of this subset, the entire industry has gone through changes that are necessary for business and development. This specialization has provided structures that are entirely different from traditional hotels.
Concentration in Melbourne
This is a very interesting trend in the real estate and the serviced industry market. Melbourne has been credit with being the most livable city in the world and is currently topping all lists including eminent ones like the Economist Intelligence unit. Also being the fastest growing city in Australia, Melbourne is also considered a practical location for most foreign investors and business travelers. This trend is beneficial for any investor who is looking for a sought-after city to get a short term or extended stay option.
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