The growing popularity of co-living spaces in Singapore

It has reached the tipping point where co-living has affected bigger businesses, such as hotels

More hotels have transformed their spaces into co-living areas. artapartment/Shutterstock

The demand for co-living spaces in Singapore has increased significantly in the past few years as it grew in popularity amidst the working class of the country. It has reached the point where occupancy rates have gone higher than 95 percent.

Needless to say, another contributing factor to the growth in the popularity of co-living is the fact that the pandemic saw the implementation of work-from-home policies, turning it into a norm within just a few years of lockdown. Since most people lived with their families, it became a challenge to work with situations like conference calls being disrupted and leading to unproductivity.

To cater to this growing demand, JLL found that more hotels have transformed their spaces into co-living areas, in hopes to penetrate larger markets and get a considerably large return from renting out residential spaces bought for cheaper prices.

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Investors have also taken note of the fact that converting hotels into co-living spaces involves less financial risk than selling to an open market. There are fixed rates with cost pressures that could be divided among people or tenants equally.

As the scale of the popularity behind co-living increases, Channel News Asia revealed that it is becoming more popular with foreigners, apart from the locals. The thought of having temporary accommodation without having to sign a long lease sounded welcoming from their point of view. Not only did it serve as a communal space for socialising and networking, but it also served as a convenient choice for professionals, students, and other people looking for a place to be away from home.

The Property Report editors wrote this article. For more information, email: [email protected].