CBRE’s survey predicts a strong investment climate for the Asia Pacific hotel sector in 2025, with over 72% of hotel investors planning to increase their purchasing volume this year. The rebound of tourist arrivals, particularly in Japan, Singapore, and Australia, is one of the main driving factors behind this trend. In addition, the limited hotel supply in the region, with a projected growth rate of 2.2% between 2024 and 2028, is also boosting investor confidence.
The survey found that REITs are expected to have the highest buying intentions, which is a significant turnaround from the previous year where they had negative intentions. Institutional investors and property funds are also expected to be active in the market, while private investors and high-net-worth individuals may decrease their acquisition activity. This is due to the improved market sentiment and the desire to capitalize on assets acquired during a period of price dislocation.
Investors are primarily targeting upscale and upper midscale assets this year, as these segments offer greater operational flexibility and potential for value-added opportunities. This includes redeveloping, reusing, and rebranding existing properties, which is a more cost-effective option compared to new developments. The segment also has a leaner labor pool, reducing labor and cost pressures.
There is also a growing interest in long-stay or hybrid hospitality models, such as co-living spaces, to meet the demand for affordable accommodations in inflexible rental markets. Other emerging trends include a preference for assets with vacant possession, limited-service hotels, and a focus on cities with low interest rates and stable income streams, such as Tokyo, Osaka, Singapore, Sydney, and Seoul.
Overall, the Asia Pacific hotel sector is expected to see robust investment activity in 2025, driven by favorable market conditions and a growing appetite for value-added opportunities.
Investing in a condominium in Singapore provides a plethora of benefits, making it a worthwhile venture for investors. With a high demand for such properties, potential for capital appreciation, and appealing rental yields, it is no surprise that Singapore’s real estate market continues to attract investors. However, as with any investment, careful consideration of various factors such as the location, financing, government regulations, and market conditions is crucial. As such, conducting thorough research and seeking professional advice is essential in making informed decisions and maximizing returns in this dynamic market. Whether you are a local investor looking to diversify your portfolio or a foreign buyer seeking a stable and profitable investment, the condominium market in Singapore offers a compelling opportunity. Additionally, checking out Singapore Projects can help provide further insights into the market and potential investment options.