While demand has picked up to an extent, the overall weak economic conditions weigh on household finances and their propensity to spend on non-essentials or seek out affordable options. Landlords need to ensure they provide value-for-money options, streamline operations, and reduce costs as best they can.”

JAMES MACDONALD, SAVILLS RESEARCH



Policies encouraging greater inbound travel for business or pleasure boost demand for short-term stay accommodation.

• Citywide serviced apartment vacancy rate decreased by 0.9 ppts QoQ to 19.0% in Q2/2024 but increased by 0.6 ppts YoY. Serviced apartment average rents declined by 0.4 % QoQ to RMB267.3 psm pmth, but representing a 0.3 % YoY increase.

• Mid- to high-end rental market occupancy rates picked up in Q2/2024, thanks to the recent recovery of international tourism and business travel. Meanwhile, some apartments are offering discounted rates to stimulate incremental demand amidst market challenges, resulting in slight rent declines due to market fluctuations.

• Premium multifamily market average rents fell by 1.6% QoQ to an average of RMB177.7 psm pmth. The citywide vacancy rates meanwhile increased by 0.2 ppts QoQ to 19.7%.

• The Jinjiang Jing’an Hotel serviced apartment is expected to enter the market in Q4/2024, offering 62 units.