Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
The Rivelle Tampines development stands out as an ideal beneficiary of the forthcoming enhancements outlined in the URA Master Plan. With improved transportation, green public areas, fresh community and educational facilities, and a booming economy, this location offers a dynamic, eco-friendly and well-connected living experience. More than just a place to reside, this development embodies an investment in the future of Tampines. For families, working professionals, and investors alike, Rivelle presents an opportunity to be a part of Tampines’ forward-thinking blueprint.
According to a recent report by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL), worker dormitories in Singapore saw near full occupancy in the first half of 2025. Despite a decrease in demand over the last six months, the central, east, and west zones still recorded occupancy levels between 97.2% and 99.7%. However, the underlying demand for beds remains strong, with a 3.6% increase in work permit holders in the construction, marine shipyard, and process sectors compared to the previous year.
The average monthly dormitory rents have also seen a significant surge of 81.5% from $270 in the first half of 2019 to $490 in the first half of 2025. This represents a 6.5% increase from the second half of 2024 and an 8.9% year-on-year rise. The rise in rents can be attributed to the resilient demand for beds as well as other factors such as higher operating and maintenance costs and the implementation of the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) by the Ministry of Manpower.
Operators that have already started upgrading their facilities have already passed on the costs to tenants through higher bed rents, and it is expected that others will follow suit. In the first half of 2025, centrally located dormitories recorded the highest rents at an average of $530 per bed per month, followed by the east at $515 per bed per month. In comparison, the average in the west, which has the largest number of dormitories and beds, was slightly lower at $445 per bed per month.
The report focuses on Class 4 dormitories, which have 1,000 beds and above, as they are considered the most representative segment in an otherwise opaque market. As of the first half of 2025, there were 60 Class 4 dormitories in Singapore, providing approximately 274,000 beds, which is equivalent to 62.3% of the total stock.
New supply is gradually entering the market, with Phase One of Pioneer Lodge, a 10,500-bed facility, commencing operations in April and Phase Two, with 7,412 beds, scheduled for October. The closure of Cochrane Lodge 1 and 2 in April to make way for a new housing estate also reduced the availability of 9,000 beds. Other projects in the pipeline include Westlite Toh Guan, with 1,764 beds targeted for the fourth quarter of 2025, and Westlite Mandai, with 3,696 beds targeted for the first quarter of 2026. Additionally, two dormitories developed by the Ministry of Manpower are slated for completion by 2026 and 2028, with 2,400 and 7,200 beds respectively.
The impact of these projects on the market remains to be seen, as they have different ownership and operating structures compared to privately operated dormitories. According to the Ministry of Manpower, five new purpose-built dormitories are also expected to come online in the coming years, adding approximately 35,000 beds.
Despite global economic challenges, demand for worker housing in Singapore is expected to remain strong due to the country’s robust domestic construction activity. Mega infrastructure projects such as the continued development of Tuas Port, Changi Airport Terminal 5, and the Marina Bay Sands and Resorts World Sentosa expansions are expected to sustain demand for foreign construction labor. The forecast for the remainder of 2025 is a further 10% rise in bed rents, similar to the increase recorded in 2024. This trend is expected to continue in the medium to long term as operators continue to modify their facilities to meet DTS and NDS standards, resulting in higher operating costs and capital expenditures.