Singapore Co Living Sector Posts Over 14 Billion Investment Volume 2022 Reflecting Resilient And
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JLL: Co-living sector in Singapore matures into institutional asset class
The co-living sector in Singapore has seen significant growth and development in the last two years. What was once a niche accommodation solution has now become a recognized asset class by institutional investors and an integral part of the residential landscape, according to JLL.
In 2022 and 2025, investors poured over $1.4 billion into the co-living sector, demonstrating a strong appetite for this segment. Most of the deals involved the conversion of existing properties, such as hotels, condos, and shophouses, into co-living assets. Private equity and institutional capital were the main drivers of larger deals, targeting properties with at least 100 keys. At the same time, owner-operators and high-net-worth individuals were also active in smaller key-count properties.
The steady investments in co-living come as the market experiences a shift. According to JLL, co-living room inventory has grown by 17% between 2023 and 2024. This expansion is due to an increase in supply in the private housing market, with nearly 30,000 new private homes completed in 2022 and 2023.
Although the increase in supply has led to stabilizing rental growth in both the private residential and co-living markets, occupancy rates remain strong and range from 85% to 95% market-wide. This is well above the sector’s typical breakeven occupancy of 70% to 75%. According to Chia Siew Chuin, head of residential research at JLL Singapore, this resilience can be attributed to operators successfully adapting to the changing landscape. She also notes that this phase of maturation is characterized by strategic shifts in business models to drive growth and operational efficiency.
One of the changes is the increasing adoption of management contracts over master leases. While master leases offer higher margins, larger operators are opting for management contracts to scale up without heavy capital requirements. Additionally, major operators are now focusing on acquiring entire buildings with over 60 keys instead of scattered strata units. This allows for greater operational efficiency and the delivery of comprehensive amenities.
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Pricing models are also evolving as some operators move away from all-inclusive rates to an unbundled pricing model, where utilities and other service charges are charged separately from the base rent. Operators are also targeting specific communities, such as international students and healthcare workers, with tailored products.
JLL’s report also notes that the top five co-living operators in Singapore, including Coliwoo, Cove, Lyf, Habyt, and The Assembly Place, hold a 65.3% market share as of 2025. This reflects a stable market structure, with a marginal increase from 65% in 2023.
The demand for co-living units in Singapore is spurred by the strong expatriate and foreign student population. According to JLL, foreigners typically make up 70% to 90% of residents in co-living properties. However, there is a growing demand from international students, who now make up 25% to 40% of residents in some co-living properties. As Singapore’s student population continues to grow, this demographic is expected to support the co-living sector and operators catering to this group.
The co-living sector has also received government support, with state-owned properties being successfully tendered for co-living use. These properties are also being specified for certain demographics, such as foreign healthcare workers and students, which prompts the creation of niche facilities tailored to these communities and further integrates the sector into Singapore’s broader housing ecosystem.
The favorable environment and strong long-term fundamentals continue to attract investors to the co-living sector. JLL’s report also highlights a shift in investor sentiment, with investors moving away from high-risk opportunistic plays to a more stable approach. Return expectations have also been tempered, with the majority of investors targeting an internal rate of return below 15%.
According to Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group, this shift signals the sector’s evolution from a higher-risk asset class to a more institutionalized investment category. In line with this maturity, investors are seeking alignment with operators, with a clear preference for co-investment partnerships that leverage expertise while sharing risk and reward.