Singapore’s co-living sector has emerged as a mature and institutionally recognised asset class, drawing over $1.02b (S$1.4b) in transaction volume since 2022, according to a recent report by JLL. The sector has maintained high occupancy rates of 85-95% despite a broader market normalisation, reflecting its resilience and growing investor confidence.
The report notes a strategic shift in investor sentiment towards stable, core-focused strategies, moving away from high-risk plays. This shift indicates confidence in the sector’s long-term viability and its integration into Singapore’s mainstream residential landscape. “The co-living sector has proven its resilience and is now a structural component of our residential landscape,” said Chia Siew Chuin, Head of Residential Research at JLL Singapore.
A significant growth driver for the sector is the demand from international students, who now make up 25 to 40% of residents for some operators. This trend is supported by projections of 6.7% annual growth in Singapore’s higher education market through 2031. Additionally, government involvement has facilitated the sector’s growth, with state-owned properties being tendered for co-living use, targeting specific demographics like students and healthcare workers.
Major operators are now focusing on acquiring and managing entire buildings for operational efficiency, whilst also offering comprehensive amenities to enhance resident experience. Investor sentiment reflects this evolution, with a notable decline in high-risk investments and a preference for core or core-plus approaches. This maturation is further evidenced by compressed return expectations, with 65% of investors targeting an Internal Rate of Return below 15%.
As the sector continues to mature, it is expected to further embed itself into Singapore’s residential landscape, driven by strategic demographic targeting and operational innovations.
