Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
Singapore’s worker dormitories have been operating at almost full capacity in the first half of 2025, according to a recent report by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL). Despite a slight decrease in demand over the past six months and a smaller waitlist for beds, occupancy levels in the central, east, and west zones have remained high at between 97.2% and 99.7%.
The construction, marine shipyard, and process (CMP) sectors, which typically house workers in dormitories, have seen a 3.6% increase in the number of work permit holders as of December 2024, according to data from the Ministry of Manpower (MOM). This strong demand has led to a surge in rents, with average monthly dormitory rents increasing by 81.5% from $270 per bed per month in 1H2019 to $490 per bed per month in 1H2025. This represents a 6.5% increase from six months ago and an 8.9% increase compared to the previous year.
The report attributes this increase in rents not only to the sustained demand for beds but also to other factors such as higher operating and maintenance costs, as well as the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) introduced by MOM in October 2023. Under these standards, existing dormitories will need to be refurbished to meet the prescribed standards by 2030 for DTS and 2040 for NDS, which include providing larger living spaces for workers, with no more than 12 workers per room and ensuite toilets shared among every six workers. As a result, operators have begun passing on these costs through higher rents, and this trend is expected to continue.
The centrally located dormitories recorded the highest rents, averaging $530 per bed per month in 1H2025, followed by those in the east at $515 per bed per month and the west at $445 per bed per month. The report focused on Class 4 dormitories, which are considered the most representative segment in an otherwise opaque market and make up 62.3% of the islandwide stock. Currently, there are 60 Class 4 dormitories in Singapore, providing around 274,000 beds.
New supply is slowly entering the market, with the first phase of the 10,500-bed Pioneer Lodge starting operations in April and the second phase scheduled for October. Other projects in the pipeline include Westlite Toh Guan with 1,764 beds and Westlite Mandai with 3,696 beds, both targeted to be operational in 2025 and 2026 respectively. Additionally, two dormitories developed by MOM are expected to be completed by 2026 and 2028. However, it remains to be seen how these projects will affect the market, given their different ownership and operating structures compared to privately operated dormitories.
Despite global economic headwinds, such as the recent tariffs announced by the US Trump administration, demand for worker housing in Singapore is expected to remain strong due to robust domestic construction activity. Mega infrastructure projects such as Tuas Port, Changi Airport Terminal 5, and the Marina Bay Sands expansion are likely to sustain demand for foreign construction labor. Therefore, bed rents are forecasted to continue rising by about 10% for the remainder of 2025, similar to the 10.8% increase seen in 2024. The report also predicts that in the medium to long term, rents for purpose-built dormitories will remain elevated due to ongoing capital expenditures and higher operating costs associated with meeting DTS and NDS standards.
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