FEASIBILITY ANALYSIS OF A STUDENT HOSTEL IN SINGAPORE

Abstract

Education has been identified as one of the new sources of growth for the Singapore economy and this sector is expected to contribute to 5% of the growth of the economy in a decade’s time. One of the main engines for the growth of this industry is to increase the international student count from the current 50,000 to 150,000 by 2012. This will inevitably result in additional demand for housing, to cater to the increasing numbers of international students in Singapore as insufficient provision of readily available housing will dampen demand for education services by international students in Singapore. This dissertation investigates the feasibility potential of the foreign student accommodation market via the critical instance case study approach, which probes in depth the structural market behaviour for foreign student accommodation. It hopes to help small investors understand the full investment potential of such a real estate investment. Although, this analysis prove such an investment project as viable, potential investor and operators should monitor and minimize the risky variables in order to ensure good enough returns for such an investment project. They must also understand that there are other non-monetary factors that will determine how successful a foreign student accommodation project in Singapore can be a viable investment.