Singapore’s rental market has been a rollercoaster in recent years. After the 2022–2023 surge, rents have started to cool but beneath the surface, something new is brewing. A big driver of today’s co-living demand comes from foreign students, particularly those from China. And their choices are quietly reshaping both the rental and resale property landscape.
Co-Living: Trend or Here to Stay?
Co-living is no longer an experiment. The sector has grown by about 17% in inventory since 2023, with fewer than 10,000 rooms but rising consolidation. The top five operators now control about 65% of the market.
Why does it matter? Because 25–40% of co-living tenants are foreign students. For them, it makes sense: leases can match academic semesters, and packages often include Wi-Fi, furnishings, utilities, and a ready-made community.
👉 Rozi’s Field Note: For students, co-living is the “plug-and-play” version of housing, higher per square foot cost, but fewer headaches.
Occupancy at 95%. So Who’s Losing Out?
Even as private rental rates ease, co-living operators are reporting 85–95% occupancy, well above breakeven. Margins of 55–70% are common, especially when operators cluster properties for efficiency.
👉 Rozi’s Field Note: This isn’t a passing trend. The numbers show co-living is a profitable, resilient niche that can weather market cooling.
Is Co-Living Changing the Rental Game?
Foreign students who once filled HDB rooms or condo common rooms are now turning to co-living. That shift eases some pressure in the open market, but because supply is still limited, co-living acts more as a stabiliser than a disruptor. Instead of dragging rents down, it reshuffles demand, creating a new “premium room” tier with bundled perks like Wi-Fi and furnishings. This also means individual landlords now find themselves competing with professional operators offering flexible leases and curated living experiences. To stay relevant, many will need to step up with better furnishings, all-inclusive packages, and more polished offerings.
👉 Rozi’s Field Note: Co-living isn’t replacing HDBs or condos, but it is forcing the rental market to evolve, stabilising rates, segmenting demand, and nudging landlords to level up their game.
Are Resale HDBs Feeling the Pinch While Condos Hold Their Ground?
Owners who once banked on renting out HDB rooms to foreign students may now face softer demand, which weakens the yield case for older resale flats. Meanwhile, condos, especially in the RCR and OCR, continue to attract professionals and families who want long-stay stability. In short, co-living may chip away at HDB rental appeal, but condos remain firmly in the game, simply re-positioned in the tenant mix.
👉 Rozi’s Field Note: If your HDB investment play was “rent to students,” it’s time to rethink. Condos, on the other hand, aren’t losing ground. They’re just shifting lanes in the rental market.
So, What’s the Big Picture Here?
Co-living is no longer just a lifestyle buzzword. It’s a maturing, profitable, and resilient sector that’s helping balance Singapore’s rental pressures. For students, it’s convenient. For landlords, it’s competition. For policymakers, it’s a middle-ground solution.
And for the resale housing market? Expect a quieter role for HDBs as yield plays, and a steadier stage for condos in the family/professional segment.
👉 Rozi’s Closing Field Note: The housing game in Singapore is layering up. If you’re a tenant, you now have more choices. If you’re a landlord, you now need sharper strategies. And if you’re an investor, remember, understanding these shifts is what keeps you ahead.
