The reinvention of serviced apartments has given investors a goldmine. Although it’s been around for more than two decades, this apartment-style lodging is catching fire as of late because of the increasing demand from business travellers.
It’s no longer meant for holidaymakers who love the feeling of waking up at home while away from home. The travelling business people are seeking for more privacy without missing the hotel-like environment.
If you’re looking for a promising real estate investment, serviced apartments deserve more than a consideration. Here are some reasons:
IBISWorld itself declared that the serviced apartments scene has left the rest of the industry in the rear view for the 10 years. The steady rise to the top for a decade indicates that its strong performance is clearly not a fluke. In fact, experts estimate its annual growth at 3.3%, producing a total revenue of about $3 billion a year.
Ideal for SMSF
Investing in serviced apartments makes a sound SMSF strategy because it’s relatively predictable, and therefore safer, as opposed to other options. Like any other thriving commercial SMSF property investment, reinvented serviced apartments have proven to survive in volatile market conditions.
Flourishing Tourism Industry
The influx of Chinese tourists gives Australia’s the tourism industry a CPR; recent data show a reduction in domestic travellers. Experts expect a rise in the number of Chinese arrivals in major cities, such as Brisbane, Sydney and Melbourne, in the coming years. Real estate would be one of the biggest winners should the prediction come to reality.
As more and more people realise the brand of accommodation they offer, serviced apartments would continue to win the hearts of business and casual tourists. There’s a reason serviced apartments are the hottest players in the tourism industry. With the guidance of experts, you could calculate all the risks involved in this type of investment.