AirBnB data reveals the size of Asia Pacific Villa Rental Market 2017
Villa-Finder.com has conducted a research to find out the latest numbers and trends of 2017.
It is no secret that the vacation villa rental market has been booming over the past few years. While Europe and North America take the lead in this scene, the market in Asia Pacific is picking up fast. How big is the Asia Pacific villa rental market? What are the trends? Where are the opportunities? What should you do to if you want to enter this market? Villa-Finder.com has conducted a research to find out the latest numbers and trends of 2017.
Overview of APAC Villa Rental Market
-The APAC villa rental market accounts for $390 million of the global $120 billion vacation rental market.
-At the time of or research, it’s estimated that there are 9,000 villas for rent in APAC. As a point of comparison, that is only about 3/4 of the total number of properties that are available full-time in Paris.
-Villa rental as well as the entire vacation rental market in Asia are growing at an annual rate of 18.3% (Statista).
-Besides existing markets such as Bali, Koh Samui and Phuket, the villa supply will develop all around the region. More investors are coming and building villas, either for returns, or to prepare for retirement. Investors can be private investors, but also large tourism or real estate groups developing villas to meet the demand. Countries like Vietnam, Myanmar, Laos, China, India are developing such an offer to respond to customer demand for more unique travel experience, according to David Chambat
, CEO of Villa-Finder.com
-“In Thailand, the competition is getting fierce which I think will drive the rates lower which will mean more bookings. The key country is China. It will be the market for the next 5 years
” said Richie Lopez
, Managing Director of White Rose Samui
-When tourism in Sri Lanka grows, the villa rental market will also grow, following a pattern set elsewhere. As tourism develops, it will attract more 'holiday home' investors to the island. These investors will in turn attract top agents seeking an alternative accommodation options for their clients. This will in turn fuel the rental market, according to Jack Eden
, CEO of Eden Villas
-The APAC villa rental market is more professional, closer to the hospitality industry and less of a community play.
-The average price of villas varies across destinations. The price of a villa can range from below $100 to a few thousands per night.
-Villas in Samui, Phuket, Sydney and Byron Bay are more expensive (at least $300-$400/night) than the rest of the region where competition is fierce. In Bali for example, the average rate of a villa is only $250/night. Other places to pick if you want value for money are Chiang Mai, Hua Hin, Goa or Perth.
-In places with low occupancy like Bali, Sri Lanka, Koh Samui or Phuket, you can almost always negotiate the price of your villa holiday.
-In the UK, one in ten people owns a second home (BBC), which they use for 30 days or more each year. For them, renting a second home is an additional source of income. Whereas in APAC, owners and investors view vacation rental as an investment. For example, in 2015,The Ascott Limited (Ascott) lead a consortium to invest US$50 million in Tujia. In addition, Ascott invested US$40 million to form a joint venture with Tujia. This joint venture led by Ascott will operate and franchise serviced apartments under Tujia Somerset brand in China.
-Services provided in Australian villas are different from most of the region. “[T]he majority of Australia’s holiday villas are still managed by professional property management companies, many of whom have their backgrounds in the Real Estate industry rather than the Tourism industry. This has created a more 'self service' approach where, in many cases, guests are still asked to provide their own linen, even for luxury properties. Although this is rapidly changing, the service and inclusion levels at many villas in Australia remain quite different to most regions of Asia where villas are often staffed or offering full resort style facilities.
” Mat Lewis
, Co-founder and CEO of View Retreats
Details of APAC Villa Rental Market - main markets, distribution channels and customer sources