Singapore’s co-living sector has successfully grown from a niche accommodation alternative to a mature, institutionally-recognised asset class.

According to a new report by JLL, by attracting over S$1.4 billion in transaction volume since 2022, it has become an integral part of the city-state's residential landscape. This growth and steady investments reflect the sector's proven resilience and investors’ sustained appetite for co-living assets.

Amid a broader residential market adjustment that saw both private residential and co-living rental growth taper due to supply influx, co-living operators demonstrated operational resilience by maintaining healthy occupancy rates of 85-95% and strong operating profit margins. This underscores the sector's underlying strength even during market normalisation.

The market structure has remained stable, with the top five operators maintaining stable market concentration at 65.3% in 2025, up marginally from 65% in 2023, reflecting market maturity.

The sector's growth is further supported by strategic demographic targeting. Demand from international students has emerged as a significant growth driver, with this group now representing 25 to 40% of residents for some operators. This trend is supported by third-party projections of 6.7% annual growth for Singapore’s higher education market through 2031.

"The co-living sector has proven its resilience and is now a structural component of our residential landscape. This maturation phase is characterised by strategic business model shifts for growth and operational efficiency. Operators are also navigating challenges like rising operational costs, while tailoring demographic-specific products for targeted communities including students and healthcare workers. This leads to a more diversified and differentiated market ecosystem,” says Chia Siew Chuin, Head of Residential Research, JLL Singapore.

Proactive government involvement has supported this maturation, with state-owned properties being successfully tendered for co-living use. This has enabled the creation of niche facilities targeting specific demographics like students and healthcare workers, further embedding the sector into Singapore’s broader housing ecosystem.

Strategic operational shifts are evident among major operators. Major players now prioritise the acquisition and management of entire buildings with more than 60 keys over scattered strata units for greater operational efficiency. These players are also looking to deliver comprehensive amenity offerings that enhance resident experience. Concurrently, some are implementing unbundled pricing models that separate utilities and services charges, optimising both pricing transparency and revenue streams.

Investor sentiment mirrors this market evolution. JLL’s latest survey data reveals a clear shift away from high-risk opportunistic plays, which declined from 37% in 2023 to just 18% in 2025. Meanwhile, stable approaches are gaining favour, with 26% of investors now opting for a core or core-plus approach focused on optimising stabilised assets. This maturation is further evidenced by compressed return expectations with 65% of investors now targeting an Internal Rate of Return (IRR) below 15%.

"This recalibration of return expectations signals the sector’s evolution from a higher-risk asset class to a more institutionalised investment category. In line with this maturity, investors continue to seek alignment with operators, with our survey showing a clear preference for co-investment partnerships that leverage expertise while sharing risk and reward,” says Tan Ling Wei, Senior Vice President, Investment Sales, JLL Hotels & Hospitality Group.

Learn more in JLL’s Co-living in Singapore: From Growth to Maturity report here.