Singapore co-living sector posts over $1.4 billion in investment volume since 2022, reflecting resilient and maturing market: JLL

Campus by The Assembly Place (Picture: Samuel Isaac Chua/The Edge Singapore)

The Singapore co-living sector has matured significantly over the last two years, evolving from a niche accommodation solution to an institutionally recognised asset class that is an integral part of the residential landscape, says JLL. In a September research report, the firm states that investors poured over $1.4 billion into the sector between 2022 and 2025, indicative of the strong appetite for the segment.

The majority of the deals entailed the conversion of existing properties, such as hotels, condos and shophouses, to co-living assets. While bigger deals were driven by private equity and institutional capital targeting larger properties with at least 100 keys, activity was also supported by owner-operators and high-net-worth individuals focusing on smaller key-count properties, JLL adds. 

Maturing market

The steady investments in the co-living sector come amid a shifting market landscape. According to JLL, co-living room inventory has expanded by about 17% between 2023 and 2024. The increase follows an influx of supply into the private housing market, with nearly 30,000 new private homes completed in 2022 and 2023.

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The supply boost has resulted in easing rental growth in both the private residential and co-living markets. But despite stabilising rents, co-living occupancy rates remain robust, hovering around 85% to 95% market-wide, well above the sector’s typical breakeven occupancy of 70% to 75%.

Chia Siew Chuin, head of residential research at JLL Singapore, partially attributes the resiliency of the co-living sector to operators successfully adapting to the changing landscape. “This maturation phase is characterised by strategic business model shifts for growth and operational efficiency,” she adds.

One such shift is the increasing adoption of management contracts over master leases. While the latter delivers higher margins, more growth-oriented and larger operators are choosing management contracts to help scale up without capital intensity. At the same time, JLL’s report notes that major operators are now prioritising entire buildings with over 60 keys, versus scattered strata units, in order to attain operational efficiency while also delivering comprehensive amenity offerings.

Pricing models are also evolving. Some operators have moved away from offering an all-inclusive rate that covered rent, utilities and maintenance, to an unbundled pricing model that charges a base rent, with utilities and other service charges added on separately. Co-living operators are also tailoring products for targeted communities, including international students and healthcare workers.

Amid the maturing market, JLL’s report notes that the top five co-living operators in Singapore – Coliwoo, Cove, Lyf, Habyt and The Assembly Place – hold a 65.3% market share as of 2025. This is marginally higher than the 65% held in 2023 and reflects a stable market structure, the firm adds.

Structural drivers

Demand for co-living units in Singapore continues to be driven by Singapore’s strong expatriate and foreign student population. In its research, JLL found that foreigners typically make up 70% to 90% of residents in a co-living property, similar to levels registered in 2023.

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However,  international students are becoming increasingly significant, with the demographic now accounting for between 25% and 40% of residents for some co-living operators. As Singapore’s student population continues to grow, demand from this cohort is expected to continue supporting the co-living sector and operators that cater to that audience.

Within the wider landscape, the co-living sector is also getting a boost from government support, with state-owned properties being successfully tendered for co-living use. Some of these properties are being specified for certain demographics such as foreign healthcare workers and students, further prompting the creation of niche facilities tailored to those communities while also embedding the sector into Singapore’s broader housing ecosystem, says JLL.

The favourable environment, coupled with strong long-term fundamentals, continues to attract investors to the co-living sector. JLL’s report highlights that the co-living market’s evolution has coincided with a shift in investor sentiment. According to its latest investor survey, investors are shifting away from high-risk opportunistic plays to a more stable approach. Return expectations are also being compressed, with the majority of respondents targeting an internal rate of return below 15%.

“This recalibration of return expectations signals the sector’s evolution from a higher-risk asset class to a more institutionalised investment category,” says Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group. “In line with this maturity, investors continue to seek alignment with operators, with our survey showing a clear preference for co-investment partnerships that leverage expertise while sharing risk and reward.”

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