Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
A recent joint report by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL) has revealed that worker dormitories in Singapore were operating at near full occupancy in the first half of 2025. The occupancy levels in the central, east, and west zones were between 97.2% and 99.7%, despite a decrease in demand over the past six months. This is reflected in the smaller waitlist of prospective workers in need of a bed.
According to data from the Ministry of Manpower (MOM), there has been a 3.6% increase in the number of work permit holders in the construction, marine shipyard, and process (CMP) sectors compared to the previous year. These workers are usually housed in dormitories, which explains the strong demand for beds.
However, the increase in dormitory rents cannot be attributed solely to high demand. There are other factors at play, such as rising operating and maintenance costs due to inflation. Furthermore, the introduction of the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) by MOM in October 2023 will require existing dormitories to be upgraded to meet the prescribed standards by 2030 for DTS and 2040 for NDS. These standards include larger living spaces for each worker, with no more than 12 workers per room and ensuite toilets shared among every six workers.
As a result, operators who have started upgrading their facilities have passed on the additional costs to tenants through higher bed rents. This has led to an 81.5% increase in average monthly dormitory rents from $270 per bed per month (pb pm) in the first half of 2019 to $490 pb pm in the first half of 2025. This represents a 6.5% increase compared to the second half of 2024 and an 8.9% year-on-year increase.
The report focused on Class 4 dormitories, which have a capacity of 1,000 beds and above, and are considered the most representative segment in the otherwise opaque market. As of the first half of 2025, there were 60 Class 4 dormitories in Singapore, providing 274,000 beds, which is equivalent to 62.3% of the island-wide stock.
New supply is gradually entering the market with the first phase of Pioneer Lodge becoming operational in April 2025. This facility has 3,088 beds and is part of a planned 10,500-bed dormitory, with the second phase expected to be completed in October 2025. However, the closure of Cochrane Lodge 1 and 2 at Admiralty Road West in April 2025 removed 9,000 beds to make way for a new housing estate. Other projects in the pipeline include Westlite Toh Guan (1,764 beds, targeted for the fourth quarter of 2025) and Westlite Mandai (3,696 beds, targeted for the first quarter of 2026). Additionally, the Ministry of Manpower is also developing two dormitories with a capacity of 2,400 and 7,200 beds in Tukang and Sengkang, respectively, with completion dates in 2026 and 2028.
It remains to be seen how these new projects will affect the market, given their different ownership and operating structures compared to privately operated dormitories. According to MOM, five new purpose-built dormitories are expected to be added to the market in the coming years, adding around 35,000 beds. Despite global economic challenges, the demand for worker housing in Singapore is expected to remain strong due to the ongoing construction of mega infrastructure projects such as Tuas Port, Changi Airport Terminal 5, the Marina Bay Sands expansion, and Resorts World Sentosa 2.0.
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For the remainder of 2025, bed rents are expected to increase by around 10%, similar to the 10.8% increase seen in 2024. As operators continue to upgrade their facilities to meet DTS and NDS standards, rents for purpose-built dormitories are expected to remain high in the medium to long term, supported by ongoing capital expenditures and higher operating costs.