Singapore Co Living Sector Posts Over 14 Billion Investment Volume 2022 Reflecting Resilient And
0 rewritten version:Over the past two years, the co-living sector in Singapore has experienced significant growth, transitioning from a niche housing solution to a recognized asset class by institutional investors and an integral part of the residential market, according to real estate firm JLL.
In a recent research report from September, JLL reveals that investors have invested over $1.4 billion into the sector between 2022 and 2025, indicating a strong demand for this segment. The majority of these investments involved the conversion of existing properties like hotels, condominiums, and shophouses into co-living spaces. While larger deals were driven by private equity and institutional capital targeting properties with at least 100 rooms, smaller investments were also made by owner-operators and high-net-worth individuals focusing on properties with fewer rooms, according to JLL.
With the steady influx of investments, the co-living market in Singapore has matured alongside a changing market landscape. JLL reports that between 2023 and 2024, the supply of co-living rooms has increased by approximately 17%, which is a result of the increase in private housing supply with nearly 30,000 new private homes completed in 2022 and 2023. This has led to a stabilization of rental growth in both the private residential and co-living markets. Despite this, co-living occupancy rates remain strong, ranging from 85% to 95% across the market, well above the typical breakeven occupancy of 70% to 75%.
According to Chia Siew Chuin, head of residential research at JLL Singapore, the resilience of the co-living sector can be attributed to operators’ successful adaptation to the changing market. She notes that this phase of maturation is marked by strategic shifts in business models for growth and operational efficiency.
One such shift is the increasing use of management contracts instead of master leases. While master leases typically offer higher margins, larger and more growth-oriented operators are now opting for management contracts to scale up without significant capital investments. Additionally, JLL’s report highlights that major operators are now prioritizing entire buildings with over 60 rooms, rather than scattered strata units, in order to achieve operational efficiency and provide comprehensive amenities. Pricing models are also evolving, with some operators moving away from all-inclusive rates to an unbundled pricing structure that charges a base rent, with utilities and other service charges added separately. Co-living operators are also customizing their products for targeted communities, such as international students and healthcare workers.
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Despite these changes, JLL’s report notes that the top five co-living operators in Singapore – Coliwoo, Cove, Lyf, Habyt, and The Assembly Place – still hold a 65.3% market share as of 2025, only slightly higher than the 65% held in 2023. This indicates a stable market structure, according to the firm.
The demand for co-living units in Singapore continues to be driven by the strong expatriate and foreign student population. JLL’s research shows that foreigners typically make up 70% to 90% of residents in co-living properties, a similar trend to 2023. However, there has been a notable increase in demand from international students, who now account for 25% to 40% of residents in some co-living properties. As Singapore’s student population continues to grow, this demographic is expected to further support the co-living sector and operators catering to this audience.
In addition to the demand from expatriates and students, the co-living sector also benefits from government support through the successful tendering of state-owned properties for co-living use. Some of these properties are even designated for specific demographics such as foreign healthcare workers and students, further driving the development of niche facilities tailored to these communities and embedding the sector into the broader housing ecosystem in Singapore, according to JLL.
The favorable environment, coupled with strong long-term fundamentals, continues to attract investors to the co-living sector. JLL’s report highlights that the evolution of the co-living market has coincided with a shift in investor sentiment. The firm’s latest investor survey shows that investors are moving away from high-risk opportunistic investments to more stable approaches. Return expectations have also become more compressed, with the majority of respondents targeting an internal rate of return below 15%.
“This adjustment in return expectations reflects the sector’s transformation from a higher-risk asset class to a more institutionalized investment category,” says Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group. “As the market matures, investors are looking for alignment with operators, with our survey showing a clear preference for co-investment partnerships that leverage expertise while sharing risk and reward.”