“Serviced apartments with outdated facilities face increasing market challenges as tenant expectations rise. Timely upgrades to both hardware and software have become essential for operators to remain competitive and adapt to more demanding market conditions, helping to preserve and enhance asset value.”

JAMES MACDONALD, SAVILLS RESEARCH



Increased Domestic and International Travel Boosts Demand

• Two new serviced apartments, Hone Serviced Apartment and CM+ Serviced Apartment, added 392 units to the market in Q3/2024.

• In response to fierce market conditions, some serviced apartments have enhanced their facilities to offer a superior living experience.

• The citywide serviced apartment vacancy rates rose by 0.1 ppt in Q3/2024 to 19.5%, up 0.8 ppt YoY.

• Serviced apartment rents increased 0.1% in Q3/2024 to an average of RMB266.3 psm pmth, up by 0.3% YoY.

• The citywide premium multifamily vacancy rates fell by 0.2 ppt to 19.3%, while rents fell 0.2% QoQ to an average of RMB177.5 psm pmth.

• Haig Court is expected to enter the market in Q4/2024. It is a renovated serviced apartment from Jin Jiang International Group, offering 62 units ranging from one to four bedrooms.