, Singapore
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Singapore's expected hotel yields amongst the lowest in Asia

They're expected to yield 3.5%-4.5% in 2018.

Singapore's hotels are expected to have yields between 3.5%-4.5% in 2018, slightly within the lower ranges for the Asia Pacific region, Savills Singapore said.

According to their forecast, Hong Kong hotels have the lowest expected yield of 2.5%-3.5%, compared to Melbourne's 5%-6%.

Overall prime location yield levels may see potential downward adjustments, whilst investor confidence improves in secondary markets.

Hotel assets in Singapore continue to be very tightly held, despite strong interest from foreign investors. Given current trends, the pricing gap between buyers and sellers should be narrowing and the market will finally start to see some significant deal flow.

Savills Research senior director Simon Smith commented, "Regional players may consider taking on more opportunistic deals in their respective markets to meet higher yield expectations."

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