The serviced apartments market is set to become more diverse as developers venture into such projects in anticipation of increasing demand and relaxed government controls.
While it is mostly expatriates who rent serviced apartments, operators and developers are looking to locals as an increasingly important source of customers.
According to FPDSavills, there are 11 new developments comprising about 7,000 apartments scheduled for completion in the next five years.
Chesterton Petty forecasts a supply of 1,922 units this year, with a further 6,500 due between 2001 and 2003.
Existing stock is estimated at 6,500-7,100 units, depending on the classification.
The substantial increase in developments is attributed to greater demand and government policy favouring serviced apartment projects, especially in industrial areas. Serviced apartments are considered suitable properties to be erected as an interface between industrial and residential buildings.