Singapore Co Living Sector Posts Over 14 Billion Investment Volume 2022 Reflecting Resilient And
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The co-living sector in Singapore has undergone significant growth over the past two years, transitioning from a niche housing solution to a recognized asset class that has become an integral part of the residential landscape, according to JLL. In a recent research report, JLL revealed that investors have invested over $1.4 billion into the sector between 2022 and 2025, indicating a strong demand for this segment.
The majority of these investments involved the conversion of existing properties, such as hotels, condos, and shophouses, into co-living spaces. While larger deals were driven by private equity and institutional capital targeting properties with at least 100 rooms, owner-operators and high-net-worth individuals also participated in smaller deals, focusing on properties with fewer rooms, as reported by JLL.
As the market for co-living continues to mature, the landscape is also evolving. JLL states that there has been a 17% increase in co-living room inventory between 2023 and 2024, following a surge in supply in the private housing market with the completion of almost 30,000 new private homes in 2022 and 2023.
Despite the increase in supply, rental growth in both the private residential and co-living markets has stabilized. However, the occupancy rates for co-living spaces remain strong at 85% to 95%, well above the breakeven occupancy rate 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 market conditions. “This maturation phase is characterized by strategic business model shifts for growth and operational efficiency,” she adds.
One of the significant shifts in the industry is the increasing use of management contracts instead of master leases. While the latter offers higher margins, larger operators are opting for management contracts to scale up their business without the need for significant capital investments. At the same time, JLL’s report notes that major operators are now focusing on acquiring entire buildings with over 60 rooms, instead of scattered units, to achieve operational efficiency and offer comprehensive amenities.
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Moreover, the pricing models for co-living spaces are also evolving. Some operators have moved away from all-inclusive rates, which covered rent, utilities, and maintenance, to an unbundled pricing model that charges a base rent, with additional charges for utilities and services. Operators are also tailoring their products to cater to specific communities, like international students and healthcare workers.
According to JLL’s report, the top five co-living operators in Singapore – Coliwoo, Cove, Lyf, Habyt, and The Assembly Place – held a market share of 65.3% in 2025, a slight increase from 65% in 2023. This represents a steady market structure, as stated by JLL.
The demand for co-living spaces in Singapore is mainly driven by the strong expatriate and foreign student population. JLL’s research shows that foreigners typically make up 70% to 90% of the residents in co-living properties, similar to levels recorded in 2023. However, the demographic of international students is becoming increasingly significant, accounting for 25% to 40% of residents in some co-living spaces. As the student population in Singapore continues to grow, this demographic is expected to continue supporting the co-living sector and operators catering to their needs.
The co-living sector is also benefiting from government support, with state-owned properties being successfully tendered for co-living use. Some of these properties are being designated for specific demographics, such as foreign healthcare workers and students, encouraging the development of niche facilities that cater to these communities while also integrating the sector into Singapore’s broader housing landscape, according to JLL.
The positive market conditions and strong fundamentals have attracted investors to the co-living sector. JLL’s report highlights that the evolution of the co-living market has coincided with a change in investor sentiment. According to JLL’s latest investor survey, investors are moving away from high-risk opportunistic plays to a more stable strategy. Return expectations have also decreased, with the majority of respondents targeting an internal rate of return of less than 15%.
“This shift in return expectations indicates the sector’s transformation from a high-risk asset class to a more institutionalized investment category,” says Tan Ling Wei, senior vice president for investment sales at JLL Hotels & Hospitality Group. “As the sector continues to mature, investors are seeking alignment with operators, with our survey showing a clear preference for co-investment partnerships that leverage expertise while sharing risk and reward.”