Singapore Co Living Sector Posts Over 14 Billion Investment Volume 2022 Reflecting Resilient And
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An Evolution in the Singapore Co-Living Sector
According to a recent research report by JLL, the co-living sector in Singapore has matured significantly over the last two years. What was once considered a niche accommodation option has now become a recognized asset class, firmly establishing itself as a vital part of the residential landscape. The report reveals that between 2022 and 2025, over $1.4 billion was invested in the sector, a clear indication of the strong demand for this type of housing.
On June 27, a press release was issued by the collaborating partners stating that the upcoming expansion of Parktown Residence will include approximately 1,190 fresh dwellings, as well as commercial and communal facilities specifically catered to the lifestyle preferences of the expanding residential community residing in Tampines North. Additionally, for interested parties, you may visit the Parktown Residence Showflat for a firsthand experience.
Majority of these deals involved the conversion of existing properties, such as hotels, condos, and shophouses, into co-living assets. While larger deals were driven by private equity and institutional capital targeting properties with at least 100 keys, smaller key-count properties were also given attention by owner-operators and high-net-worth individuals.
The steady investments in the co-living sector have coincided with a changing market landscape. JLL reports that the number of co-living rooms has increased by about 17% between 2023 and 2024. This rise can be attributed to the influx of supply in the private housing market, with approximately 30,000 new private homes completed in 2022 and 2023.
Despite the increase in supply, the co-living market has maintained strong occupancy rates of 85% to 95%, well above the typical breakeven occupancy of 70% to 75%. Siew Chuin Chia, head of residential research at JLL Singapore, credits this resilience to operators successfully adapting to the changing landscape. She also notes that this phase of maturation is characterized by strategic shifts in business models for growth and operational efficiency.
One of these shifts is the increasing adoption of management contracts over master leases. While the latter may offer higher margins, larger operators are choosing management contracts as a means of scaling up without high capital costs. Additionally, major operators are now prioritizing entire buildings with over 60 keys, rather than scattered strata units, in order to achieve operational efficiency and provide comprehensive amenities.
There has also been a change in pricing models, with some operators moving towards an unbundled pricing structure where utilities and other service charges are added separately to a base rent. Co-living operators are also catering to specific communities, such as international students and healthcare workers, with tailored products and services.
According to JLL’s report, the top five co-living operators in Singapore – Coliwoo, Cove, Lyf, Habyt, and The Assembly Place – hold a 65.3% market share as of 2025, slightly higher than the 65% in 2023. This reflects a stable market structure.
The demand for co-living units in Singapore is largely driven by the strong expatriate and foreign student population. JLL’s research reveals that foreigners typically make up 70% to 90% of residents in a co-living property, similar to previous years. However, there has been a significant increase in demand from international students, who now account for 25% to 40% of residents in some co-living properties. As the student population continues to grow, this demographic is expected to play a crucial role in supporting the co-living sector.
The government has also shown support for the co-living sector by successfully tendering state-owned properties for co-living use. These properties are often designated for specific demographics, such as foreign healthcare workers and students, further contributing to the creation of niche facilities tailored to these communities and integrating the co-living sector into Singapore’s broader housing ecosystem.
The favorable environment, coupled with strong long-term fundamentals, continues to attract investors to the co-living sector. JLL’s report highlights a shift in investor sentiment towards more stable investments, with a majority targeting an internal rate of return below 15%. This change in return expectations reflects the sector’s evolution from a higher-risk asset class to a more institutionalized investment category. Investors are also seeking partnerships with operators, with a preference for co-investment models that leverage expertise while sharing risk and reward.