2023 Asia Pacific Real Estate Market Outlook
Trends to Watch
Steady growth in international arrivalsMonthly international arrivals are currently at just 20% of the levels that were registered in 2019, indicating substantial room for improvement in the hotels and hospitality sector this year and beyond with a full recovery expected in 2024.
Mainland Chinese tourists to returnMainland Chinese tourists will boost the regional hotel and hospitality sector following their country’s re-opening in January. However, the recovery will be gradual and dependent upon the availability and cost of air travel. Japan, Korea and Hong Kong SAR will be the main beneficiaries of this trend.
Hotel performance to surpass pre-pandemic levelsMany markets are now recording Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) levels above what was seen in 2019. The return of mainland Chinese tourists and the expected prolonging of revenge tourism should see the hotels and hospitality market show modest growth in 2023, before returning to pre-pandemic levels in early 2024.