Higher demand for co-living spaces in Singapore is driving occupancy rates above 95 percent, operators said. This is due to more people seeking temporary housing while waiting for their new homes to be ready, and expatriates returning to Singapore for work following the COVID-19 pandemic.
The co-living experience is popular with both locals and foreigners. Some are attracted by the temporary accommodation, where they do not need to sign a long lease. For others, it is a communal living option that allows for socialising and networking.
With demand climbing in a pricey market that is already short on supply, industry players said that rental looks set to shoot up. But this is in line with rental prices across the board, they said. Rental prices of Housing and Development Board (HDB) flats have hit record highs in heartland areas. For private housing, some have complained that their rent has soared by as much as 70 percent.
Co-living operators can offer slightly better rates for now because of the way they operate – where rates are more fixed and cost pressures can be spread out, said industry experts. Analysts said these companies have been able to offer more competitive rates because they have a company policy on room rates. This is in comparison with individual landlords, who may have their own requirements and expectations when it comes to rental prices.
While co-living operators are enjoying strong robust growth with a high occupancy rate at the moment, they will need to look for more homes to lease to cater to an increasing number of renters. However, should rental prices continue to spike, landlords might find it more lucrative to rent directly to the open market rather than leasing them to co-living operators.
