Robust growth of Australia’s hotel market is expected in 2025, plus more headlines

For PropertyGuru’s real estate news roundup, Aussies’ need and desire to travel means good news for the Australian hotel market’s growth in 2025. In other headlines, apartments in Vietnam’s capital city Hanoi have gained in popularity in recent years as a source of rental income and a reliable haven for people who seek shelter from inflation. Lastly, negative headlines of abduction and human trafficking of Chinese and Hong Kong residents in Thailand may scare off Chinese investors in the Kingdom’s property market.

Australian hotel market set for robust growth in 2025 – Colliers

Despite a soft discretionary spend through 2024, Colliers’ Australian Real Estate Investment Review and Outlook 2025’ indicates that consumer travel intentions have remained strong, demonstrating an enduring need and desire for Australians to travel. Colliers Head of Hotel Transactions Australia, Karen Wales, said in The Hotel Conversation, “The resilience in travel intentions highlights the strong underlying demand for travel among Australians, which is a positive sign for the hotel market.” Investment funds, high-net-worth individuals (HNWIs), and family offices were the most active buyer groups in 2024, accounting for two-thirds of deal flow, with domestic capital continuing to dominate. Offshore capital became active again in the second half of 2024, notably from global funds and investors from Singapore, with acquisitions in Brisbane and Hobart. More acquisitions are anticipated in 2025, with Sydney ranked as one of the highest destinations for global capital.

Apartments gain in popularity in Vietnam’s capital

Apartments in the capital city Hanoi have gained in popularity in recent years as a source of rental income and a reliable haven for people who seek shelter from inflation. Senior Director of the Consulting and Research Department at Savills Hanoi, Do Thu Hang, said in a VietnamPlus report that apartments offer dual investment returns: rental income and value growth. As prices for other products such as shophouses and villas have seen significant gains in recent years, people have been turning to apartments as an affordable alternative. The shift aligns with Vietnam’s broader real estate outlook, she said. After a strong recovery in 2024, Hanoi’s market is set to enter a new development cycle in 2025.

Abduction and trafficking news may scare off Chinese buyers of Thai properties

Beijing resident Evelyn Lin bought a flat in Bangkok as her holiday home in the Thai capital. However, the recent spate of kidnappings of mainland Chinese and human trafficking of Hong Kong residents is keeping her away. “Recent news coming out from the country has me worried,” the 39-year-old finance executive said to Bangkok Post. “I have no intention to go back to Thailand again.” While Lin has no immediate plans to sell her Bangkok property, her worries could undermine sentiment among the single largest group of foreign investors in Thailand’s property market and hurt local home builders amid a supply glut. Chinese buyers, including those from Hong Kong, exceeded the combined amount spent by the next nine top foreign investor groups. Thai developers can do without the negative headlines.

The Property Report editors wrote this article. For more information, email: [email protected].