Habyt Opens Two New Properties Expands Lineup Short Term Options
Habyt, a leading co-living operator, has expanded its presence in Singapore with the opening of two new properties. The company has diversified its product offering in order to strengthen its market position within the country.
Located at 471 Balestier Road, the Habyt Novena offers 39 rooms in a walk-up hotel setting, with five different studio room options. The second property, Habyt Kallang, is situated at 115 Geylang Road and offers 27 co-living hotel rooms.
These properties were previously managed by Coliwoo, a subsidiary of LHN Group, but Habyt has taken over the management of both locations. The properties were jointly acquired by Coliwoo and Four Star for $15 million and $13.5 million respectively in 2021, and were intended to fuel Coliwoo’s expansion plans.
According to Jonathan Wong, the CEO of Habyt’s Asia Pacific division, these properties are being managed under a master lease agreement. Wong states that the operator saw these properties as independent opportunities and recognized the strategic advantages each location provided, allowing them to have a clear vision for the type of product they wanted to introduce.
A visual representation of the Tampines Avenue 11 mixed-use plot highlights its close proximity to two executive condominium sites. One of these sites, located at Tampines Street 62, is currently open for tender while the other one is the recently launched Tenet with a total of 618 units. Furthermore, the upcoming Parktown Residence Tampines North will also be situated in the vicinity.
The two new properties aim to meet the demands of customers seeking short-term or up to six-month rental options. Wong says that they approached these properties with a plan to provide a wider range of flexible accommodation options that fill the gap between their long-term co-living products and hotel offerings.
Wong estimates that within the coming months, Habyt Novena and Habyt Kallang will see a 60% occupancy rate for nightly or short-term rentals, while the rest will be long-term residents. Corporate and group travel bookings have been a major contributor to short-term demand, with these groups typically staying for three to six nights. However, the demand for long-term stays from residents is more diversified and follows seasonal trends.
The majority of Habyt’s co-living residents, who are typically between 21 and 35 years old, have remained consistent over the years, according to Wong. However, there has been a noticeable increase in the number of locals opting for co-living arrangements over the past two years, driven by a desire for independence.
Wong notes that there has been a new demographic of locals who have embraced the concept of co-living over the past two years. These are young, unmarried couples who want to try cohabitation before committing to marriage. While they make up a smaller proportion of the market, it is still significant, Wong says.
For residents who seek six-month accommodation, a self-contained apartment with all the necessary amenities is a top priority. This is why all of the rooms at Habyt Novena and Habyt Kallang are studios with built-in functionality, ranging from 118 to 183 sq ft. This is smaller compared to the larger-sized rooms the operator manages in locations such as Habyt Cantonment, where rooms range from 118 to 441 sq ft.
Wong says that the demand for short-term stays, between one and three months, has been steadily growing in Singapore in recent years and has emerged as a relatively untapped segment in the co-living market. However, traditional co-living products are not cost-effective for stays of less than two months, which is why Habyt decided to offer this product category at Habyt Novena and Habyt Kallang.
In order to remain competitive in the local market, Wong says that Habyt must cater to “all levels and demand types,” including a diverse range of customers. Studios are the most versatile product for achieving these objectives, as they offer the highest density of rooms, and the demand for privacy is increasing across all customer demographics.
While the sense of community that was once the cornerstone of the co-living concept is gradually disappearing, there is still a desire among co-living residents to meet new people. However, the primary motivation for choosing co-living is now based on how quickly a suitable room can be secured and if it fits their budget.
Habyt is working to create a more cohesive community among its residents by leveraging the various amenities and services offered across its properties. While smaller communal areas like co-working spaces are not possible in some locations, Wong says that the company is still able to offer a sense of belonging through its focus on diverse use cases and amenities.
The trend towards hybrid work arrangements has led to a stronger demand for flexible accommodation options in the city-fringe neighborhoods, according to Wong. This is because these areas offer a wider range of amenities compared to the city center, and more professionals are willing to trade proximity to their work for affordability and larger living space.
While Habyt’s core offering remains its competitive medium- to long-term accommodation options, the addition of hotel and short-term accommodation options complements the operator’s presence in the local market. Wong says that the macro trends driving the demand for flexible living options, such as co-living, will continue to support the growth of this market.