Coliving sector attracts $1.4b amidst asset conversion boom

Market-wide occupancy stood at 85%–95% despite a 17% rise in room inventory.

Singapore’s coliving sector attracted $1.4b in investment between January 2022 and August 2025, with most of the capital deployed into adaptive reuse and conversion assets, according to a CapitaLand Investment (CLI) report.

Coliving room inventory increased 17% between 2023 and 2025. Market-wide occupancy remained between 85% and 95% despite the increase in supply.

The five largest operators accounted for about 70% of total coliving stock as of the second quarter (Q2) of last year, whilst coliving represented only around 6% of the market’s total public and private rental stock.

“These penetration levels suggest scope for further market share expansion as the rental market continues to grow,” CLI said.

Demand has been supported by foreign workers and students. The foreign resident population increased 30% between 2021 and 2025, with close to two-thirds of the group represented by the foreign workforce.

Young professionals, mid-level employees, and project-based professionals form a key tenant group because of their preference for flexible leases and job mobility, CLI said. 

International students made up about 25% to 40% of the resident base of some coliving operators, it added.

The demand backdrop comes as technology and artificial intelligence (AI) companies expand their presence in Singapore.

A separate JLL report said OpenAI is reportedly in advanced negotiations for about 120,000 sq ft across five floors at Shaw Tower, a substantial expansion from its current footprint of around 100 desks at The Work Project’s CapitaSpring facility.

“Sierra AI and Manus AI have also reportedly taken space at Keppel South Central in the Shenton Way/Tanjong Pagar sub-market,” the property firm added.

“What stands out this quarter is how decisively AI and technology firms are moving to secure space, even as broader macroeconomic headwinds remain unresolved,” Michael Glancy, country CEO for Singapore and Southeast Asia at JLL, said.

JLL said Singapore’s CBD Grade A office rents increased 1% quarter-on-quarter in Q3, bringing growth for the first nine months of the year to 2.8%. 

Office vacancy also fell to its tightest level in 10 quarters.

The government has also raised its full-year economic growth forecast to 4.5%–5.5% from 2%–4% previously, it noted.

CLI identified local singles as a source of transitional domestic demand, with more single professionals moving out of family homes since the pandemic. 

Compared with renting an entire apartment, coliving provides a lower-cost option alongside amenities, services and flexible leases, it said.

On the investment side, it estimated coliving yields at around 4%, making acquisition prices and financing costs important to returns.