Condo demand in Singapore continues to soar, driven by various factors, including the limited availability of land. Being a small island nation with a rapidly growing population, Singapore faces the challenge of finding land for development. To address this issue, the country has implemented stringent land use policies and boasts a competitive real estate market, resulting in consistently increasing property prices. This has made investing in real estate, particularly in condos, an attractive and lucrative opportunity, with the potential for significant capital appreciation. For those looking to invest in condos, Singapore Projects, such as the highly sought-after nationalathleticcombine.com, offer a diverse range of options to cater to varying preferences and investment goals. Singapore Projects present a promising avenue for potential buyers to embark on their condo investment journey.
According to a recent CBRE survey, the Asia Pacific (Apac) hotel sector is expected to continue experiencing strong investment activity by 2025. The 2025 Asia Pacific Hotel Investor Intentions Survey revealed that over 72% of hotel investors surveyed in November and December of last year plan to acquire more hotel assets this year. Almost 45% of respondents also stated that they intend to increase their purchasing volume by over 10% in the same period. Steve Carroll, head of hotels, capital markets, Asia Pacific, CBRE, says that after performing well for the past 18 months, investors have high expectations for hotel and living assets in Apac in 2025.
One of the main factors driving this positive buying sentiment is the rebound of tourist arrivals, particularly in popular locations like Japan, Singapore, and Australia. The increase in international tourists has resulted in higher room rates for Apac hotels, ensuring that hotel operators continue to experience income growth similar to last year. Additionally, the limited supply of hotels in Apac has also encouraged investors to direct their funds to the region. According to data from hospitality data intelligence group STR, the hotel supply pipeline in Apac is expected to grow at a CAGR of 2.2% between 2024 and 2028, which is significantly lower than the 5% CAGR recorded between 2013 and 2023.
A breakdown of investment intentions by type found that REITs have the highest net buying intentions at 22%, a significant shift from the -13% recorded in last year’s survey. This marks a change in approach for REITs, which have had negative investment intentions for several years but are now indicating plans to acquire more properties in 2025. Institutional investors have the second-highest net buying intentions at 12%, closely followed by property funds at 10%. CBRE notes that private equity and real estate funds in the hotel sector became more active in 2024 and are expected to continue this trend this year.
On the other hand, private investors and high-net-worth individuals are expected to make fewer hotel acquisitions this year. The report suggests that after two years of being the most active buyers in the region, private investors are now anticipating a higher level of selling activity in 2025. This is due to their intention to capitalize on the positive market sentiment after acquiring properties during a period of price dislocation.
The survey found that value-add investment strategy is the most favored by respondents for 2025. CBRE observes that in select markets, assets have been repriced to the point where investors believe they can achieve value-add returns by acquiring assets with core risk profiles. This has led to the upscale and upper midscale hotel categories being voted the most attractive asset types for investment this year, overtaking the upper upscale category, which topped last year’s survey.
This shift in preference is attributed to the operational flexibility and higher potential for value-added opportunities in the upscale and upper midscale segment. These may include redevelopment, adaptive reuse, and rebranding of existing properties, which are more cost-effective than developing new properties. The segment also has a leaner labor pool compared to higher-tier assets, which can reduce labor and operating costs.
Furthermore, investors are showing more interest in long-stay or hybrid hospitality models, with a growing demand for converting assets into co-living spaces, especially in markets like Japan, Hong Kong, and Singapore, where there is a need for affordable accommodations due to rigid rental markets. Other emerging trends include a preference for assets with vacant possession at the time of acquisition, giving investors flexibility in terms of operator selection and refurbishment works. Limited-service hotels are also becoming more popular among investors due to their focus on minimizing operational costs.
The top city preferred by hotel investors is Tokyo, thanks to low interest rates and stable income streams from hotel properties. Osaka has also made it to the top five cities for the same reasons. Singapore and Sydney are also popular among investors due to solid hotel fundamentals, including growth in daily rates and underlying operating profits. Seoul is also an attractive market due to an increase in visitors from mainland China, leading to a rise in daily rates and investor activity in recent months.