Singapore’s worker dormitory market experienced significant growth in the first half of 2026, with a 6.3% increase in bed inventory, according to a joint report by the Dormitory Association of Singapore Limited and Knight Frank Singapore. The report highlights the addition of 7,860 new beds, driven by major infrastructure projects, including the NESST Tukang Dormitory and expansions at Westlite Toh Guan and Westlite Mandai.
The Ministry of Manpower reported a 5.6% rise in foreign workers in the Construction, Marine Shipyard, and Process industries, totalling 482,600 by December 2025. This increase has necessitated the expansion of dormitory facilities, particularly Class 4 dormitories, which now account for 61.6% of the total bed load in Singapore.
Upcoming developments include a second NESST dormitory at Sengkang West, expected to add 7,200 beds by 2028. Additionally, the Building and Construction Authority awarded new dormitory sites at Terusan Edge, Kranji Close, and Lok Yang Way, promising a combined capacity of 15,200 beds by 2028.
Despite easing occupancy pressures, bed rents rose by 2.1% in H1 2026, reaching an average of S$495 per bed per month. Leonard Tay, Head of Research at Knight Frank Singapore, noted, “The market is evolving towards quality enhancement, regulatory compliance, and long-term sustainability.”
The sector’s transition towards higher accommodation standards under the Dormitory Transition Scheme by 2030 is expected to influence future market dynamics, with bed rents projected to increase by around 5% for the entire year.
