FEASIBILITY ANALYSIS OF FOREIGN STUDENT ACCOMODATION MARKET IN SINGAPORE

Abstract

Along the new directions set by the Singapore government, the Education sector, in particular that segment which attracts foreign students to Singapore, has become one key potential market for service providers. The demand for foreign student accommodation will thus become one of the up-and-rising businesses in the near future. Investors and operators will be drawn into establishing the foreign student accommodation market in Singapore. This dissertation investigates the feasibility potential of the foreign student accommodation market via the critical instance case study approach, which probes indepth the structural market behaviour for foreign student accommodation. While the returns are high, there are two variables that have a major impact on these returns - the Terminal Value of the property and the vacancy rate. Though the analysis envisages such an investment project to be viable, potential investors 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 as a viable investment.