# Making room for co-living in Singapore as sector comes of age

- **Source:** EdgeProp Singapore
- **Published:** 2026-09-17T02:30:00.000Z
- **Author:** Christine Li
- **Original:** https://www.edgeprop.sg/property-news/making-room-co-living-singapore-sector-comes-age
- **Topics:** Private Residential, Government & Policy, Transactions & Deals

## Featured rationale

The substantial supply gap signals broadening demand for flexible rentals and could encourage institutional investment, building conversions and purpose-built co-living development.

## AI summary

Singapore’s co-living demand could reach 45,840 keys by 2028, leaving an estimated 32,840-key shortfall after projected supply growth.

## Original article

Homeownership has long been the cornerstone of Singapore’s housing model, with nine in 10 resident households owning the homes they live in. Against this backdrop, the emergence of a viable housing format built around shorter leases might have seemed unlikely a decade ago.

Yet co-living has grown rapidly over the past five years, evolving from a niche accommodation concept into an increasingly visible part of the country’s housing landscape.

The potential for such demand became more apparent when construction delays and border disruptions hit during the pandemic. The reopening of borders then fuelled a rapid recovery in international mobility, while rental market conditions tightened as demand rose across multiple tenant groups.

Read also: Why this long-term renter has called co-living home for four years — and counting

Between 2022 and 2023, URA’s private residential rental index rose sharply, with the increase exceeding 40% at its peak. Direct acquisitions of co-living assets climbed as operators sought to scale their portfolios, while transactions involving operating platforms also emerged, including Mitsubishi Estate’s buyout of Habyt.

Although deal volumes softened in 2025 amid a tighter supply of investible assets, conversion opportunities have revived activity this year. In August 2026, CapitaLand Ascott Trust’s proposed $134 million acquisition and leaseback of the 212-room Coliwoo Midtown offered a further sign of the sector’s growing institutional appeal.

More reasons to rent

Expectations of a recalibration in co-living demand after the pandemic appear to have been premature.

The sector has continued to expand even as rental market conditions began to normalise, suggesting that demand is being supported by longer-term structural drivers rather than a temporary spurt.

While the surge in rental costs helped improve the economics of the sector, its durability appears to extend beyond that period of exceptional rental growth.

Several factors have expanded demand for flexible housing solutions in Singapore. International student enrolments have continued to grow, while Singapore’s international workforce remains sizeable, with more than 200,000 Employment Pass holders.

Read also: Coliwoo posts 93.7% occupancy in 3QFY2026 as portfolio holds at 28 properties with 3,568 rooms

The demand base is also broadening beyond the traditional expatriate and student segments. A growing number of local residents are choosing to rent at different life stages, whether while waiting for a new home to be completed, to live closer to their workplaces or to gain greater independence.

At the same time, household formation patterns have shifted. Single-person households now account for nearly one in six resident households. Notably, much of the increase recorded between 1980 and 2015 has been replicated in just the past decade.

As more people choose to live alone, demand for smaller and more flexible housing options is likely to increase. In this respect, co-living has an advantage: the presence of a community and ready access to amenities can make compact living more appealing.

With the profile of renters becoming more diverse, a rental stock made up predominantly of housing developed for ownership may not always be the optimal solution.

An estimated 9,000 to 10,000 co-living keys are now operating across the island, while sustained investment interest points to the segment’s growing presence within Singapore’s housing market.

Living, not just lodging

The growth of co-living points to a broader shift in how housing is being consumed.

Changing lifestyles and the way people live, work and play have contributed to a larger pool of renters. For these groups, location, lease flexibility and ease of move-in can carry significant weight in housing decisions. These preferences align closely with the services typically offered by co-living operators.

Read also: The Assembly Place targets younger crowd with launch of Gather House capsule hotel

Room rentals in co-living properties and private condos with similar attributes are generally competitive.

Headline co-living rents can be higher than conventional room rents, but the difference narrows once furnishings, utilities, connectivity, cleaning services and shorter lease commitments are taken into account. For those with shorter accommodation horizons, avoiding the hassle of setting up their own Wi-Fi and utilities can be a meaningful advantage.

The segment’s appeal also lies in its ability to serve multiple tenant groups through a single platform. Each group may have different housing requirements, but preferences for flexibility, convenience and a professionally managed living environment are widely shared.

This allows operators to tap several sources of demand rather than relying on a single tenant profile.

Co-living is also finding its way into larger mixed-use developments alongside retail, co-working and other lifestyle amenities. From integrated live-work concepts on Orchard Road to resort-style accommodation, the format is being reimagined as a lifestyle offering, not merely a housing solution.

This points to a maturing sector that has moved beyond establishing its viability towards developing more differentiated products with broader appeal.

This shift is also worth considering against the backdrop of recent policy adjustments. At the National Day Rally 2026, Prime Minister Lawrence Wong announced a major reset in public housing, raising the monthly income ceilings for Build-To-Order flats and executive condos to $16,000 and $18,000 respectively, alongside increased ballot priority for young families.

These measures reinforce subsidised homeownership as a central pillar of Singapore’s housing policy, particularly for families.

At the same time, they do not directly address private rental dynamics or the immediate housing needs of singles and households in transition.

This leaves room for market-based rental formats to serve non-traditional, transitional and single-person households. In that sense, institutional co-living can complement, rather than compete with, Singapore’s homeownership model by serving groups whose housing needs may not fit neatly within traditional ownership or rental options.

A broader housing continuum In response to the steep run-up in rents amid tight market conditions, the government has sought to increase rental alternatives.

Aside from higher occupancy caps for larger HDB flats and private residential properties, the introduction of the Serviced Apartments II (SA2) framework in 2023 established a clearer housing format sitting between traditional residential and hospitality uses.

While SA2 is fundamentally a new housing typology and development framework designed for purpose-built rental accommodation, co-living has largely emerged as an operating platform.

Co-living should therefore be viewed as part of a broader housing continuum alongside conventional private rentals.

Many of its tenants are in transitional phases and may eventually gravitate towards housing options that offer greater autonomy, privacy and control over their living environment.

Relative to conventional rentals, higher tenant turnover is inherent in the co-living model. Sustained demand will therefore require a continual replenishment of the tenant base, supported in part by Singapore’s continued appeal as a global city.

Co-living comes of age

What is clear is that the sector has matured and is attracting growing investment interest. A stronger track record of operating performance, an expanding occupier base and policy initiatives such as youth independent-living pilots have strengthened its investment case.

The sector has also demonstrated that growth can be achieved through the repositioning of existing assets. By converting and adapting underutilised buildings, operators have been able to scale in a land-constrained market.

This has broadened the range of opportunities available to investors, from direct asset acquisitions and conversions to the leasing and repositioning of heritage properties.

This is particularly relevant in a higher-interest-rate environment, as co-living offers multiple avenues for value creation, ranging from asset repositioning and adaptive reuse to operational execution.

As the scope for further yield compression narrows, these characteristics are becoming increasingly important drivers of returns.

Underlying these opportunities is a larger and more diversified tenant base, strengthening the sector’s demand fundamentals.

The continued gap between existing supply and addressable demand — the pool of occupiers that could potentially be accommodated by institutional-grade or professionally managed co-living assets — further highlights the scope for expansion.

Based on the size and income profile of key renter groups, Knight Frank’s latest Horizon Research Report, From Niche to Core: Why Asia-Pacific Living Sectors are Entering the Mainstream, estimates that Singapore’s addressable demand for co-living could reach about 45,840 keys by 2028.

Against this, the existing stock of about 9,000 to 10,000 keys is expected to grow by only another 3,000 to 4,000 over the same period. This would leave an estimated supply shortfall of about 32,840 keys by 2028.

Co-living’s rise mirrors Singapore’s successful evolution into a global city with an increasingly cosmopolitan community. At the same time, younger generations of Singaporeans are balancing homeownership aspirations with a broader range of lifestyle priorities.

As occupier needs become more varied and rental demand extends beyond traditional leasing models, co-living is assuming a more prominent role within the residential landscape.

For investors, the sector offers exposure to these changing housing dynamics through an asset class that is moving beyond its niche origins.

Singapore should now recognise professionally managed rental housing as a deliberate part of its broader housing and talent strategy.

Policymakers can create clearer pathways for converting suitable buildings and developing purpose-built rental accommodation. Owners, operators and investors, in turn, must demonstrate that the model can deliver quality, transparency and a consistently good living experience, rather than simply availing more rooms.

The choice is not between co-living and homeownership. It is whether Singapore’s housing system can offer enough flexibility between them.

Making room for co-living would help close that gap and ensure that housing options continue to evolve alongside the people and economy Singapore seeks to attract and support.

The winners will not simply be those that add the most rooms, but those that combine the right locations with disciplined operations, strong service and a resident experience that keeps pace with expectations.

## Chinese translation

> Translation model: grok_cli

### 共居在新加坡渐趋成熟，应为这一业态腾出空间

评论：新加坡应将专业管理的租赁住房明确纳入其住房与人才战略

自置居所长期以来都是新加坡住房模式的基石，十分之九的居民家庭拥有自己居住的房屋。在此背景下，一种以较短租约为基础的可行住房形态，在十年前或许显得不太可能出现。

然而，过去五年共居迅速发展，已从小众住宿概念演变为该国住房格局中日益显眼的一部分。

疫情期间工程延误和边境中断，使这类需求的潜力更加显现。随后边境重开推动国际流动迅速恢复，而多个租户群体需求上升，租赁市场状况趋紧。

延伸阅读：这位长期租客为何把共居当作家已四年——而且还在继续

2022年至2023年间，市区重建局（URA）私人住宅租金指数大幅上升，峰值时涨幅超过40%。运营商为扩大投资组合，直接收购共居资产的活动增加，同时涉及运营平台的交易也开始出现，包括三菱地所收购Habyt。

尽管2025年可投资资产供应趋紧，成交量有所放缓，但改建机会今年重新激活了市场。2026年8月，凯德雅诗阁信托拟以新币1.34亿元收购并回租拥有212间客房的Coliwoo Midtown，进一步显示该板块对机构资金的吸引力正在增强。

更多租住理由

疫情后共居需求将回调的预期，如今看来似乎为时过早。

即便租赁市场状况开始正常化，该板块仍在继续扩张，表明需求受到更长期结构性因素支撑，而非一时热潮。

虽然租金成本飙升改善了该板块的经济性，但其可持续性似乎超越了那段租金异常增长的时期。

若干因素扩大了新加坡对灵活住房解决方案的需求。国际学生入学人数持续增长，新加坡的国际劳动力规模依然可观，持有就业准证（Employment Pass）的人数超过200,000。

延伸阅读：Coliwoo在2026财年第三季录得93.7%入住率，投资组合维持28处物业、3,568间客房

需求基础也正在超越传统外籍人士和学生群体。越来越多本地居民在不同人生阶段选择租房，无论是等待新居落成、就近上班，还是追求更大独立性。

与此同时，家庭组成模式已经转变。单人家庭目前约占居民家庭的近六分之一。值得注意的是，1980年至2015年间录得的大部分增幅，在过去十年中几乎再次出现。

随着更多人选择独居，对更小、更灵活住房选择的需求可能会增加。在这方面，共居具有优势：社区氛围和便利设施随时可用，能使紧凑居住更具吸引力。

随着租客画像日益多元，以专为自置而开发的住房为主的租赁存量，未必始终是最优方案。

目前全岛估计有9,000至10,000个共居房间在运营，持续的投资兴趣也表明该细分板块在新加坡住房市场中的存在感正在增强。

是居住，而不只是落脚

共居的增长，指向住房消费方式更广泛的转变。

生活方式以及人们居住、工作和休闲方式的变化，扩大了租客群体。对这些群体而言，地段、租约灵活性和入住便利，在住房决策中可能具有重要分量。这些偏好与共居运营商通常提供的服务高度吻合。

延伸阅读：The Assembly Place推出Gather House胶囊酒店，瞄准年轻客群

共居物业与具备类似属性的私人公寓房间租金总体具有竞争力。

共居的名义租金可能高于传统房间租金，但一旦计入家具、水电、网络、清洁服务以及更短租约承诺，差距就会收窄。对住宿期限较短的人来说，免去自行办理Wi-Fi和水电的麻烦，可能是一项实在的优势。

该板块的吸引力还在于能通过单一平台服务多个租户群体。各群体的住房需求可能不同，但对灵活性、便利性和专业管理居住环境的偏好却广泛共通。

这使运营商能够对接多种需求来源，而非依赖单一租户画像。

共居也正在进入更大型综合发展项目，与零售、共享办公及其他生活方式配套并存。从乌节路的综合居住—办公概念，到度假式住宿，这一形态正被重新构想为生活方式产品，而不只是住房解决方案。

这表明该板块正在走向成熟，已从证明可行性，转向开发更具差异化、受众更广的产品。

这一转变也值得放在近期政策调整的背景下审视。在2026年国庆群众大会上，总理黄循财宣布公共住房重大调整，将预购组屋和执行共管公寓的月入顶限分别提高至新币16,000元和新币18,000元，同时增加年轻家庭的抽签优先权。

这些措施强化了受补贴自置居所作为新加坡住房政策核心支柱的地位，尤其是对家庭而言。

与此同时，它们并未直接回应私人租赁动态，或单身人士及过渡期家庭的即时住房需求。

这为市场化租赁形态服务非传统、过渡期和单人家庭留下了空间。就此而言，机构化共居可以补充而非竞争新加坡的自置居所模式，服务那些住房需求难以完全契合传统自置或租赁选项的群体。

更广泛的住房连续谱 面对市场紧张、租金大幅攀升，政府一直在设法增加租赁替代选项。

除提高大型组屋和私人住宅物业的居住人数上限外，2023年推出的服务公寓II（SA2）框架，确立了一种介于传统住宅和酒店用途之间的更清晰住房形态。

SA2本质上是一种专为目的性租赁住宿设计的新型住房类型和发展框架，而共居则主要是作为运营平台出现的。

因此，共居应被视为更广泛住房连续谱的一部分，与传统私人租赁并存。

其许多租户处于过渡阶段，最终可能转向能提供更大自主性、私密性和居住环境掌控权的住房选择。

相对于传统租赁，更高的租户周转率是共居模式的固有特征。因此，持续需求需要租户基础不断补充，这部分也有赖于新加坡作为全球城市的持续吸引力。

共居渐趋成熟

显而易见的是，该板块已经成熟，并正吸引日益增长的投资兴趣。更强的运营业绩记录、不断扩大的入住者基础，以及青年独立生活试点等政策举措，强化了其投资逻辑。

该板块也已证明，可以通过重置现有资产实现增长。通过改建和改造未充分利用的楼宇，运营商得以在土地受限的市场中扩张。

这拓宽了投资者可获得的机会范围，从直接资产收购和改建，到遗产建筑的租赁与重置。

在利率较高的环境下，这一点尤为重要，因为共居提供了多种价值创造途径，从资产重置和适应性再利用，到运营执行。

随着收益率进一步压缩的空间收窄，这些特征正日益成为回报的重要驱动因素。

这些机会的背后，是更大、更多元的租户基础，强化了该板块的需求基本面。

现有供应与可覆盖需求——即有可能由机构级或专业管理共居资产容纳的入住者群体——之间持续存在的缺口，进一步凸显了扩张空间。

根据主要租客群体的规模和收入状况，莱坊最新Horizon研究报告《从小众到核心：亚太居住板块为何进入主流》估计，到2028年，新加坡共居的可覆盖需求可能达到约45,840间。

与此相对，现有约9,000至10,000间的存量，预计同期仅再增加3,000至4,000间。到2028年，估计将留下约32,840间的供应缺口。

共居的崛起，映照出新加坡成功演变为拥有日益国际化社区的全球城市。与此同时，年轻一代新加坡人正在平衡自置居所愿望与更广泛的生活方式优先事项。

随着入住者需求更趋多样，租赁需求延伸到传统租赁模式之外，共居正在住宅格局中扮演更突出的角色。

对投资者而言，该板块通过一个正在走出小众起源的资产类别，提供了接触这些住房动态变化的机会。

新加坡现在应将专业管理的租赁住房，明确纳入其更广泛的住房与人才战略。

政策制定者可以为改建合适楼宇和开发专建租赁住宿开辟更清晰的路径。业主、运营商和投资者则必须证明，这一模式能够提供品质、透明度和持续良好的居住体验，而不仅仅是增加房间数量。

选择并非在共居与自置居所之间二选一，而在于新加坡的住房体系能否在两者之间提供足够的灵活性。

为共居腾出空间，将有助于弥合这一差距，并确保住房选择继续与新加坡希望吸引和支持的人群与经济同步演进。

赢家不会只是增加房间最多的那些，而是能把正确地段与严谨运营、优质服务以及跟上预期的住客体验结合起来的那些。