Serviced apartments make for dream homes

Two tenants before a serviced apartment in Chengdu, Sichuan province. [Photo provided to China Daily]

Wong estimates that there are more than 250,000 hotel rooms in China that can accommodate short-term visitors to Shanghai, Beijing, Guangzhou and Shenzhen. But when it comes to those who work in China for a few months or even a couple of years, the existing serviced apartments are simply inadequate to meet their demand. "In Beijing, there are some 4,000 units of serviced apartments. So, in terms of growth potential by numbers, it can be huge," said Wong.

Small wonder, Savills Residence is planning to launch 355 new serviced apartments in Shenzhen in 2016 and 2017, 200 units in Chengdu and 240 units in Shanghai's Free Trade Zone area.

Similarly, Suzhou and Hangzhou are also seeing new serviced apartments come up as the two cities aspire to become hubs of regional headquarters of multinational corporations.

In Suzhou alone, some 100 serviced apartments spread over 50,000 square meters have been completed in the first half of 2015, according to data on fang.com, a housing services information platform.

Such huge investments in relatively smaller cities are driven by the fact that tenants of serviced apartments in China tend to span a wide range, in terms of age, family size, lease term and demand for services. They think nothing of relocating to cities other than traditional work destinations such as Beijing, Shanghai and Guangzhou. And they all care for classy conveniences and customized comforts. This is pushing developers and management teams of serviced apartments to adjust their strategies, said market insiders.

For instance, Savills Residence's new properties like those in Shenzhen tend to be smaller as many tenants are young, single professionals who do not need three bedrooms or a very spacious kitchen, said Neil Harvey, its director.

In contrast, serviced apartments in Shanghai's Free Trade Zone may offer spacious en-suites that can house a big family. Tenants working in the region typically bring their families together.

"We leave some spaces in serviced apartments for tenants to decorate for themselves because everyone has his or her own taste and interests. In this way, a serviced apartment is no longer a rented space but a home with a personal touch," said Harvey.

Property managers are sparing no effort to cater to their patrons' changing and increasing demands for varied services.

"Environment, neighborhood, food and water safety are major concerns for tenants. In response to increasing concerns about air pollution and water quality, our properties are installed with air filters and water filters," said Brian Connelly of Oakwood Residence Hangzhou.

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