1. A haven of laidback charm
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  2. Water Place
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  2. Sri Tiara - Providing a family friendly environment
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  3. Rainbow harmony over food, games and songs
  1. Singapore Culinary Icons Under One Roof
  2. Learning from the experts
  1. Signature Bite at Changi Village Hotel
  1. In Appreciation
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  3. Romancing our customers
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Copyright Far East Organization 2003/2004

A robust global economy and expectations of more business activity in Asia have helped boost business for service apartments in Singapore. The sector recorded an average occupancy rate of 88 per cent for the first half of this year, a substantial notch above the 65 per cent average for the same period last year.

Far East Organization, with a total of 901 units accounting for about a quarter of the service apartment market here, has also seen a steady increase in average occupancies since the beginning of the year.

From the average of 75 per cent experienced in 2003, occupancy rates for its portfolio of service apartments grew to 83 per cent in the first quarter of this year, rising further to 95 per cent in the second quarter. Its Central Place, Central Square and Riverside View service apartments have had 99 per cent occupancy since May, with periods when occupancy hit 100 per cent. At its premier five-star property Orchard Parksuites, which has similarly experienced periods of full bookings, average occupancy firms at 90 per cent.

"Typically, 90 per cent of our clients are expatriates working for multinational companies and staying for a medium term of three to six months. Lately, in addition to our traditional markets from Europe and America, we areseeing an increasing number of professionals from Asian countries including China and India," notes Mr G L Yap, Chief Operating Officer for Development & Corporate Leasing, on the changing customer profile.

A number of factors have contributed to the surge in demand for service apartments. As business cycles shorten, more companies arehiring workers on shorter work contracts and are turning to service apartments for short to medium term accommodation of six to 12 months. Boosted by improved business sentiment and prospects of better business in Asia, service apartments are seeing better forward bookings at higher rentals.

"Looking ahead, we expect this strongperformance to continue and rentals to adjust upwards by next year. The upturn in the market also bodes well for our other corporate leasing units, which stand to gain from the pickup in business activity along with strong economic growth. Furthermore, from our experience, some of the tenants in our service apartments go on to require long-lease accommodation," adds Mr Yap.