Singapore is a city state with one of the highest urban densities in the world and has significant tourist arrivals as well as business travel. Hotels are thriving here, with a diverse mix of offerings of all scales, from low budget to high-end luxury products – with many new properties opening their doors in 2023.
The Government of Singapore’s Urban Redevelopment Authority (URA)i has enacted strict laws around short-term letting. There is a minimum stay for private residential properties, which must be rented out for at least three consecutive months (90 nights), effectively removing short-term rentals through digital booking platforms from the market. However, serviced apartments ‘akin to residential use’ are allowed to book for a seven-night minimumii subject to following all rules and regulations.
According to our partners the extended-stay apartment space is very encouraging at present, with increased demand and investments into the sector, as is the aparthotel space, which can cater to both long- and short-term travellers. The strict licensing rules that have removed private residential short-term properties from the market has not decreased overall availability of rooms, although diversity of property type is reduced. The sector is highly professionalised and is thriving, with investment being made in hotels, aparthotels, and serviced apartment buildings.
Interestingly, there is a definite demand for co-living accommodation from younger travellers with lower budgets, and more properties are being built with this concept in mind. Perhaps this is because with the cultural experience of living in a local residential neighbourhood unavailable, the community atmosphere of co-living is the next best thing for this demographic – and certainly represents strategic thinking on the part of investors.
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The content of this white paper and subsequent blog posts of the same content is only accurate as of the date of the white paper’s release and will constantly evolve due to the ever-changing nature of the local property market. For the most recent update please contact your Accommodation Specialist at Situ.
Do you need a stay in Singapore? Do browse our selection of great Situ serviced apartments in Singapore, or pick up the phone and give one of our friendly accommodation specialists a call at +44 (0)1392 690 079.