Why the long-stay serviced apartments model should be ditched
Uncertainty over user demand could explain tepid interest of property groups
ARE property players here an unadventurous lot? Many groups seem to be giving the cold shoulder to the new category of long-stay serviced apartments labelled SA2.
SA2 apartments are to be rented out for lodging purposes for a minimum period of three months, unlike other serviced apartments where the minimum rental period is seven days. Strata subdivision of both standard serviced apartments and SA2 is not allowed.
Three sites have been rolled out so far since the pilot programme was announced last year. The three state land tenders to date of sites with SA2 components – all of which closed this year – drew lukewarm responses.
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