Dorm upgrades may tighten supply, lift rents in 2026

Occupancy dips to 97.1% as supply grows.

The worker dormitory market is positioned for resilience in 2026, but bed rents could rise about 5% as supply tightens when operators carry out Dormitory Transition Scheme (DTS) upgrades, according to a DASL and Knight Frank report.

The report said the DTS and New Dormitory Standards (NDS) require refurbishments to meet DTS by 2030 and NDS by 2040, and it pointed to a Ministry of Manpower grant announced in January 2026 to partially defray retrofit costs, with higher support for operators completing works by end-2028 than those finishing in 2029 or 2030.

It said average islandwide bed rent eased 1.0% in H2 2025 to $485 per bed per month, whilst occupancy in a basket of Class 4 purpose-built dormitories dipped to 97.1%, suggesting some easing in near-term pressure even as utilisation stayed high.

The report cited incoming supply over the next few years, saying that at least six more purpose-built dormitories with around 47,000 beds are expected to be completed, including a MOM-developed site at Sengkang West with 7,200 beds, which is expected to begin operations by end-2028.

It also noted a Building and Construction Authority tender in December 2025 for a Terusan Edge dormitory site for up to 3,200 workers, envisaged for completion in 2028, with the tender closing in February.

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