The growing trend of companies looking abroad has resulted in greater staff mobility, which has led to a rise in business trips.
As such, the number of serviced apartments in Singapore with larger living spaces and hotel-style services has grown exponentially to meet the requirements of corporate travellers and their families.
This type of accommodation normally caters to longer-staying visitors by providing fully-furnished units that are more spacious than an average hotel room.
However, Tejaswi Chunduri, real estate analyst for PropertyGuru, highlighted that demand for serviced residences in Singapore has moderated.
“Comparing the last quarter with Q1 2011, the total number of page visits to serviced residences listings on the PropertyGuru website has fallen by some 10 percent,” she said.
“Though cheaper when compared to hotels, one probable reason for this decline could be control on excessive business / leisure travels due to the volatile economic situation globally.”
Some operators disagree, and believe the serviced residence sector here is performing well despite global uncertainty.
Patrick Fiat, General Manager and Chief Experience Officer of 8 on Claymore Serviced Residences, said, “The serviced residence sector is now better than ever. There’s no glut in the industry and many developers are opening serviced residences here. The average occupancy for serviced residences is 93 percent, much higher than hotel occupancy rates.”
8 on Claymore Serviced Residences was officially launched yesterday and is located near the Orchard Road shopping belt.
According to Fiat, approximately 70 percent of their guests are from the US and Europe. He noted that the residence’s current occupancy rate is more than 70 percent and they aim to achieve 85 percent occupancy by next year.
Monthly room rates at 8 on Claymore Serviced Residences range from around S$12,000 for a two-bedder to S$19,000 for the only penthouse, which has been booked till June 2012.
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