Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
In the first half of 2025, a report published by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL) revealed that worker dormitories in Singapore were operating at almost full capacity. Despite a decrease in demand over the past six months, with a smaller waitlist for available beds, occupancy levels in the central, east, and west zones ranged between 97.2% and 99.7%. This strong demand can be attributed to the presence of 456,800 work permit holders in the construction, marine shipyard, and process (CMP) sectors as of December 2024, a 3.6% increase year on year. These workers are typically housed in dormitories.
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However, this high demand has also resulted in a surge in rents for dormitory beds. Since the pre-pandemic period in the first half of 2019, average monthly dormitory rents have increased by 81.5% to $490 per bed per month in the first half of 2025. This represents a 6.5% increase from the previous six months and an 8.9% increase from the previous year. The rise in rents can be attributed not only to strong demand, but also to higher operating and maintenance costs due to inflation in recent years. Additionally, the introduction of the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) by the Ministry of Manpower in October 2023 has led to increased costs for operators as they are required to upgrade their facilities to meet the prescribed standards by 2030 for DTS and 2040 for NDS. This includes providing larger living spaces for workers with a maximum of 12 workers per room and shared ensuite toilets among every six workers.
With the passing on of these costs to operators, the average bed rents in centrally located dormitories in the first half of 2025 were the highest at $530 per bed per month. This was followed by the east at $515 and the west, which has the largest number of dormitories and beds, at $445 per bed per month. The report focused on Class 4 dormitories, which consist of 1,000 beds or more and are considered the most representative segment in the 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.
Looking ahead, new supply is slowly entering the market to meet the high demand. Phase One of Pioneer Lodge, with 3,088 beds out of the planned 10,500-bed facility, started operations in April and Phase Two is scheduled to open in October. This has offset the closure of Cochrane Lodge 1 and 2 at Admiralty Road West, which removed 9,000 beds to make way for a new housing estate. Other upcoming projects include Westlite Toh Guan, with 1,764 beds targeted for completion in the fourth quarter of 2025, and Westlite Mandai, with 3,696 beds targeted for completion in the first quarter of 2026. Additionally, the Ministry of Manpower is also developing two dormitories, one with 2,400 beds in Tukang targeted for completion in 2026 and another with 7,200 beds in Sengkang targeted for completion in 2028. These new developments are expected to add around 35,000 beds to the market.
The impact of these projects 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 expected to open in the coming years, adding approximately 35,000 beds to the market. Despite global economic challenges, the demand for worker housing in Singapore is expected to remain strong due to ongoing construction projects such as the development of Tuas Port, Changi Airport Terminal 5, and other mega infrastructure projects. As a result, bed rents are forecasted to increase by about 10% in the remainder of 2025, similar to the 10.8% increase seen in 2024. With ongoing capital expenditures and higher operating costs due to DTS and NDS standards, bed rents for purpose-built dormitories are expected to remain high in the medium to long term.