Workers' dormitory rents resume growth in 1H2026, despite easing occupancy

Workers' dormitory rents rose in 1H2026, reversing a decline recorded in the prior six-month period.

Data in a September report jointly published by the Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore showed that average rents for workers' dormitory beds islandwide grew 2.1% in 1H2026 to $495 per bed per month (pb pm), based on a basket of Class 4 purpose-built dormitories (those with 1,000 beds and above).

This marks a rebound from the 1% dip logged in 2H2025, which had halted a surge in rents that began before the Covid-19 pandemic. With growth resuming in 1H2026, monthly dormitory bed rents have now climbed 83.3% since 1H2019, when the figure stood at $270 pb pm.

Average dormitory bed rents islandwide and by zones

The higher rents logged in 1H2026 were underpinned by rental growth across Singapore, with the report delineating dormitory locations into east, west and central zones. The west zone — covering dormitories in Tuas, Tengah, Pioneer and Jurong districts — logged the biggest half-yearly growth of 4.5% in the first six months of 2026, hitting an average of $460 pb pm.

Read also: Surge in workers' dormitory rents halts in 2H2025 as supply-demand gap narrows

DASL and Knight Frank attributed the jump to the completion of the 2,400-bed NESST Tukang Dormitory earlier this year. Monthly bed rents at the facility — the first dormitory to be developed by the Ministry of Manpower (MOM) — were reported to be about $500, which pulled up rents in the west zone, the report added.

In the central zone (Sembawang, Marsiling, Seletar and Tanjong Pagar), rents grew by 2.9% in 1H2026 to an average of $535 pb pm. Meanwhile, the east zone (Changi, East Coast, Kaki Bukit and Bendemeer) saw the smallest increase of 1.9% across the same period, reaching an average of $525 pb pm.

Higher supply

In addition to NESST Tukang Dormitory, other completions this year include a new block at Westlite Mandai with 3,686 beds.

The new facilities have helped bolster supply. As of 1H2026, there are 60 Class 4 dormitories in Singapore with a total of 287,837 beds. This makes up 61.6% of beds across all classes of workers' dormitories islandwide, according to the report. Class 4 beds have grown 5.1% since 1H2025, representing 13,910 beds.

Additionally, the government has approved more Class 2 (100 to 299 beds) and Class 3 (300 to 999 beds) dormitories. These include factory-converted dormitories and construction temporary quarters.

As a result, the number of Class 2 beds rose 8.7% y-o-y to reach 53,122 across 292 dorms in 1H2026, while that of Class 3 beds increased 10.9% y-o-y, hitting 86,211 beds across 175 dorms. Overall, total bed inventory in 1H2026 grew 6.3% compared to 1H2025.

Lower occupancy

Given the new supply, occupancy pressure in workers' dormitories has continued to ease in 1H2026.

According to DASL and Knight Frank, average islandwide occupancy for their basket of Class 4 purpose-built dormitories declined 1.3 percentage points between January and June, going from 97.1% in 2H2025 to 95.8% in 1H2026. The figure extends the 1.2 percentage-point decrease recorded in 2H2025.

All three dormitory zones saw decreases, led by the east zone, where average occupancy slid 4.6 percentage points to 93.7% in 1H2026. Average occupancy in the central zone eased 0.9 percentage points to 93.6%, while the west zone saw average occupancy inch down 0.7 percentage points to 98.3%.

"It appears that the government’s resolve to ensure that adequate accommodation will be available for foreign migrant workers in the run-up towards the Dormitory Transition Scheme (DTS) deadline of 2030 has provided some relief on the bed pressure at purpose-built dormitories, while at the same time providing adequate worker housing for large-scale construction and infrastructure projects," the report added.

The DTS was first announced by MOM in 2023, following the introduction of improved standards for new workers' dormitories in 2021. Under the DTS, existing dormitories must meet interim standards by 2030 and comply with the new dormitory standards by 2040.

Interim standards include having no more than 12 residents per room, with at least 1m spacing recommended between beds and an en suite bathroom containing at least one set of facilities (toilet, shower, hand-wash basin) for every six residents. Each resident must also have at least 3.6 sq m (39 sq ft) of living space, excluding shared facilities.

Significant pipeline

More dormitories are in the works, with MOM estimating around 47,000 beds to be completed over the next few years. This includes the second MOM-owned NESST dormitory located in Sengkang, a 7,200-bed development slated to begin operations by the end of 2028.

The pipeline also includes several workers' dormitory sites the government has awarded or is tendering this year.

In April, the Building and Construction Authority (BCA) awarded a site at Terusan Edge in Jurong East that can accommodate 3,200 beds to S11 Ascendene Management for $105 million. The purpose-built dormitory is slated for completion in 2028.

In August, BCA awarded a plot at Kranji Close to Westlite Dormitory (SI), a subsidiary of Centurion Corporation, for $343 million. The site will house some 7,000 workers when completed in 2028. In that same month, another Centurion unit bagged a JTC site at Lok Yang Way for a workers’ dormitory with 5,000 beds after submitting the top bid of $221.7 million.

The JTC tender for a 10,000-bed site at Gali Batu is scheduled to close later this month.

Meanwhile, another JTC site at Lorong Lada Hitam is expected to be launched for tender at the end of this year or early next year. It can accommodate 15,000 beds.

Moderate rental growth

The sites at Terusan Edge, Lok Yang Way and Kranji Close were awarded at land rates of $32,712, $44,333 and $49,000 per bed, respectively. This is substantially higher than past plots, such as a Ubi Avenue 3 site JTC awarded in 2023 at $24,364 per bed, noted DASL and Knight Frank.

“The increased land rates at government tenders for dormitory development land in 2026, together with the standards required by the New Dormitory Standards scheme, will likely cause bed rents to increase in the medium term,” the report added.

Still, demand is expected to remain resilient, supported by a growing number of workers for ongoing large-scale construction and infrastructure projects. Work permit holders in the construction, marine shipyard and process industries — who typically stay in dormitories — stood at 482,600 as of December 2025, up 5.6% y-o-y.

At the same time, new supply is expected to alleviate capacity pressures, while the sector’s transition towards higher accommodation standards will promote long-term sustainability of the dormitory ecosystem.

As a result, DASL and Knight Frank expect occupancy to "remain healthy by historical standards", while rents will continue to grow, albeit at a more moderate pace compared to recent years. The firms have maintained their 5% projected growth for bed rents in 2026.