When purchasing a Singapore condo, it is crucial to take into account the property’s maintenance and management. Maintenance fees are typically included in condo ownership and cover the maintenance of common areas and facilities. Although these fees may increase the overall cost of ownership, they also guarantee that the property remains well-maintained and maintains its value. Investors can make their condos a more passive investment by enlisting the services of a property management company to handle day-to-day management tasks.
CBRE’s 2025 Asia Pacific Hotel Investor Intentions Survey revealed that the Apac hotel sector is expected to experience ongoing investment activity in 2025. According to the consultancy’s findings, more than 72% of hotel investors surveyed in November and December of last year are planning to acquire additional hotel assets this year. Of these respondents, 45% said they plan to increase their purchasing volume by over 10%.
Steve Carroll, head of hotels, capital markets, Asia Pacific, CBRE, notes that after performing well over the past 18 months, investors are optimistic about the pricing expectations for hotel and living assets in Apac in 2025. This positive outlook is driven by a rebound in tourist arrivals in countries such as Japan, Singapore, and Australia. The increase in international visitors from key markets has pushed up hotel room rates in Apac, resulting in income growth for hotel operators in the region.
The healthy buying intentions are also fueled by the relatively limited hotel supply in Apac. According to data from hospitality data intelligence group STR, the hotel supply pipeline in Apac is projected to grow at a compound annual growth rate (CAGR) of 2.2% between 2024 and 2028. This is significantly lower than the 5% CAGR recorded from 2013 to 2023.
The survey found that Real Estate Investment Trusts (REITs) have the highest net buying intentions at 22%, a sharp increase from the -13% recorded in last year’s survey. The report notes that after several years of negative net investment intentions, REITs are now in a buying mode in 2025. Institutional investors and property funds follow closely with net buying intentions of 12% and 10%, respectively. CBRE also notes that private equity and real estate funds for hotels have become more active in 2024, and this momentum is expected to continue this year.
On the other hand, private investors and high-net-worth individuals are expected to drive fewer hotel acquisitions this year. After two years of being the most active buyer type in the region, private investors indicated that they plan to sell more assets in 2025 to capitalize on improving market sentiment after acquiring properties during a period of price dislocation.
Investors are primarily targeting upscale and upper midscale assets for investment in 2025, as the two categories were voted as the most attractive in this year’s survey. This marks a shift from last year’s survey, where the upper upscale category was the most preferred asset type. According to CBRE, investors now prefer the upscale and upper midscale segment because of its operational flexibility and potential for value-added opportunities. These include redevelopment, adaptive reuse, and rebranding of existing properties, which offer a more cost-effective alternative to new developments.
Investors are also increasingly embracing long-stay or hybrid hospitality models, such as co-living spaces. This trend is particularly evident in markets like Japan, Hong Kong, and Singapore, where there is a demand for affordable accommodation in relatively inflexible rental markets. Other emerging trends highlighted in the survey include a preference for assets with vacant possession at the time of acquisition, limited-service hotels, and a focus on minimizing operational costs.
In terms of preferred cities for hotel investments, Tokyo remains in the top spot, supported by low interest rates and stable income streams from hotels. Osaka also ranks among the top five cities for similar reasons. Singapore and Sydney also make the list due to their solid hotel fundamentals, including growth in daily rates and underlying operating profits. Seoul also stands out, as more visitors from mainland China have driven up daily rates, leading to increased investor activity in recent months.