Quayside JBCC in Johor Baru stands as a prime example of a branded aparthotel that is well-positioned to capitalise on current market trends.
IN the ever-evolving landscape of real estate, discerning investors are constantly seeking new and promising opportunities.
Branded residences, or aparthotels, have been gaining popularity in the market for their unique blend of residential comforts and hotel-like amenities.
An aparthotel, or apartment-hotel, is a serviced apartment complex that uses a hotel-style booking system.
These properties incorporate various services such as a manned reception and around-the-clock support, as well as facilitated shared occupancy, to cater to the modern demand for flexibility, luxury and hassle-free living.
This has enabled aparthotels to become the accommodation of choice for both short-term and long-term residents.
Bangsar Heights Pavilion Sdn Bhd (BHP) chief executive officer Aaron Yap believes that branded aparthotels will become big players in the hospitality industry over the coming years.
Unmatched appeal
One of the most compelling reasons that draws property investors to aparthotels is the higher potential return on investment over traditional residential properties.
This is often due to their locations in prime areas which naturally garner higher occupancy rates and command higher rental prices.
According to the Global Serviced Apartments Industry Report (GSAIR) 2020-21, 67% of corporate executives would rather stay at branded aparthotels as opposed to their traditional counterparts.
This preference is also reflected in the consumer market. According to The 2021 Skift and Oracle “Back to Hospitality” Report, 60% chose to stay at an aparthotel, Airbnb or other short-term rental properties.
Branded aparthotels have also demonstrated remarkable resilience in the face of economic crises such as the Covid-19 pandemic.
The reasons lie in their flexibility, appeal to a diverse range of guests and adaptability amidst shifting market conditions.
This stability amidst the fluctuating housing market has garnered aparthotels a reputation as secure investments compared to residential rental properties.
Another key factor is that aparthotels are managed by professional hotel operators, who are in charge of aspects such as marketing, maintenance and guest relations.
This makes them a hassle-free investment, while simultaneously minimising the risk of vacancy and loss of income.
The success of branded aparthotels, in mature markets such as Australia, the UK and the US, is a testament to the appeal to investors and residents alike.
The Knight Frank Global Branded Residences Report 2023 predicts a 12% annual growth in the global branded aparthotel market until 2026.
The report highlighted the Asia-Pacific region for its growth potential, particularly in key cities such as Hong Kong and Singapore.
This growth is being driven by several factors including the increasing demand for second homes and branded aparthotels, as well as rising affluence and mobility amongst high-net-worth individuals globally and in Asia.
The aforementioned GSAIR 2020-21 also highlights a significant growth in the serviced apartment sector, with a 14.76% increase in inventory since 2018.
'As the world embraces new living and working trends, branded aparthotels are poised to play an increasingly prominent role in the real estate landscape,' says BHP chief executive officer Aaron Yap.
The right investment
Located in Johor Baru, Quayside JBCC, in partnership with Oakwood, stands as a prime example of a branded aparthotel that is well-positioned to capitalise on current market trends.
Oakwood’s reputation for quality in the branded aparthotel sector, paired with Quayside JBCC’s location near the Woodlands checkpoint, will no doubt be a haven for travellers and renters.
In particular, the aparthotel’s luxurious amenities and flexible nature will be highly favoured among the growing market of remote workers and digital nomads.
The recent introduction of Malaysia’s DE Rantau Nomad Pass visa will pave the way for digital nomads to work remotely in Malaysia for up to two years, which is likely to attract Singaporean remote workers who benefit from a lower cost of living while maintaining proximity to Singapore.
Quayside JBCC represents a sound and compelling choice for investors, owing to the resilience of the hospitality sector, high-quality build, prime location and potential for significant returns.
For more information, visit www.quaysidejbcc.com.
