Information provided by Quest Serviced Apartments
The past few years have seen strong growth in Australian business travel – fuelled by the growing Australian economy and the continual boom in the natural resources sector.
At the same time, property investment opportunities in business accommodation sectors are increasing too, with secure growth and strong returns expected for the next few years or so.
Firstly, let’s take a look at the background:
Is business travel increasing?
Yes: the most recent stats from the Australian Government show strong growth in inbound business travel to Australia – with a 6% increase in inbound business travellers to nearly 700,000 visitors per year.
What key factors influence business travellers’ accommodation decision making?
According to a 2013 survey by frequent business traveller magazine, backed up by American Express, there are a few key factors that come into play when determining demand:
These factors are:
· Flexible working opportunities
· The level of service and quality
· Online booking solutions
· Brand trust and loyalty
Specific trend: serviced apartments
Another survey: IBIS World’s Industry Report of 2012 into Serviced Apartments in Australia furthered and qualified the American Express survey, forecasting greater demand by an increasing number of travellers to stay at serviced apartments rather than hotels.
The report stated that business travelers prefer the larger room space; wider range of in-room facilities and the greater flexibility and freedom offered - particularly during mid to long-term stays.
Serviced apartments were also deemed to provide the traveler with a more ‘at-home’ feel compared to hotels - especially standard motel rooms.
Where does investment fit in?
The upward trends in serviced apartments and business travel have combined to create a strong property investment opportunity for Australian property investors, due to the strong returns and relatively low risk from serviced apartment investment.
Lots of major industry players agree: There’s increasing online coverage around the secure benefits of serviced apartment investment, with major Australian websites such as Your Investment Property Magazine highlighting the benefits of the investment strategy over the next few years.
How can a serviced apartment investment be made?
The serviced apartment sector is still a young one, relatively speaking, but there are a few trusted brands on the market that a serviced apartment investment can be made with.
One of them is worth highlighting: Quest Properties is one of the biggest and most established players in the market, with serviced apartment complexes across Australia’s main towns and cities.
Like any investment option, serviced apartment investment requires a lot of research. For more information and a breakdown of the potential benefits, visit one of the major players like Quest Properties.
Find out more today: http://www.questproperties.com.au
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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