Singapore’s worker dormitory market has shown resilience in the first half of 2025, with demand continuing to rise despite global economic uncertainties, according to a joint report by the Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore. The report highlights that the number of work permit holders in the Construction, Marine Shipyard, and Process industries increased by 3.6% from December 2023 to December 2024, reaching 456,800.
The report focuses on Class 4 dormitories, which represent the majority of the market. As of H1 2025, there were 60 Class 4 dormitories with approximately 274,000 beds, accounting for 62.3% of the total bed capacity in Singapore. The occupancy rate for these dormitories rose to 98.3%, up from 96.7% in H2 2024.
Leonard Tay, Head of Research at Knight Frank Singapore, noted that domestic construction projects, such as the development of Tuas Port and Changi Airport Terminal 5, are driving the demand for worker accommodation. The report also mentions the opening of new dormitory facilities, including the Pioneer Lodge Dormitory, which added 3,088 beds in April 2025, with an additional 7,412 beds expected by October 2025.
Average monthly rents for dormitory beds have increased by 6.5% in the past six months, reaching an islandwide average of $360 (S$490) per bed per month. This rise is attributed to both strong demand and increased operating costs. The introduction of the Dormitory Transition Scheme and New Dormitory Standards by the Ministry of Manpower is expected to further influence rent prices as dormitories undergo necessary upgrades.
Looking ahead, the report anticipates a continued upward trend in bed rents, with a projected increase of around 10% for the remainder of 2025. The market outlook remains positive, supported by ongoing construction activities and regulatory changes.
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