Of all the sectors of the Shanghai
real estate market, serviced apartments are
currently the most in demand. Serviced apartments
have grown in popularity due to the increasing
numbers of expatriates arriving to work in
the city. Serviced apartments also appeal
to medium term residents (contract workers)
and even locals as they tend to offer far
greater quality and variety of facilities
than standard apartment complexes, whilst
offering more comfort and privacy than a hotel.
Serviced apartments were first offered
in Shanghai in the 1990’s. With increasing
numbers of foreign business people coming
to Shanghai, serviced apartments have since
become a major part of the residential property
sector. However, earlier limitations on
the location of serviced apartments means
that demand still significantly outstrips
supply.
Already, occupancy levels on completed
projects are extremely high (some over 85%)
and demand is set to continue growing. According
to the research department at FPD Savills:
“With strong growth allied to an increasingly
open economy as WTO obligations are met,
the expatriate influx into Shanghai looks
likely to continue. This is good news for
the serviced apartment sector.”
