Co-Living Gains Ground Amid Rental Market Curbs
Singapore’s residential property market is undergoing a structural shift as traditional rental investments face mounting regulatory and market pressures, while co-living operators emerge as clear beneficiaries. Tighter rules, restrictions on short-term stays and moderating rental growth are reshaping investor strategies and elevating alternative housing models.
Traditional rental investments lose momentum
undergoing
For years, buying residential property for rental income was considered a reliable strategy in Singapore. That assumption has weakened as short-term rentals remain prohibited in private properties and public housing, leaving no legal equivalent to platforms such as Airbnb. At the same time, cooling measures, including higher additional buyer’s stamp duties, have raised entry costs and reduced the appeal of property investment focused on rental yield or capital appreciation.
Rental growth moderates
Market data points to a cooling rental environment. According to the Urban Redevelopment Authority, rents for private residential properties fell by 0.5 per cent in the fourth quarter of 2025, reversing a 1.2 per cent increase in the previous quarter. For the full year, rents rose by 1.9 per cent after declining by the same margin in 2024. Analysts expect growth to remain modest in 2026, reflecting softer demand and broader economic uncertainty.
Foreign tenant demand under scrutiny
Landlords are increasingly cautious as concerns grow over Singapore’s appeal to foreign professionals, who form a significant share of the rental market. Rising living costs and uncertainty in the global job market could temper inflows of expatriates, directly affecting demand in the conventional leasing segment.
Co-living fills a structural gap
Against this backdrop, co-living operators are addressing a clear gap in the housing market. By catering to foreign students, young professionals and short-term residents, they provide legally compliant accommodation for intermediate stays. For investors, co-living offers exposure to rental income without the constraints imposed on private landlords operating in the short- to mid-term rental space.
Capital markets endorse the model
Investor enthusiasm has been reflected in recent public listings. The Assembly Place’s January 2026 debut drew strong demand, with shares opening sharply above their IPO price and receiving favourable analyst ratings. Similar optimism surrounds Coliwoo, Singapore’s largest co-living operator, which listed in late 2025 and has since attracted multiple “buy” recommendations from major brokerages.
Regulation turns into a tailwind
Ironically, the very regulations that challenge traditional landlords are structurally supporting the co-living sector. Higher barriers to property ownership for foreigners are driving demand for rental and shared living solutions. Meanwhile, minimum-stay requirements and pilot schemes for long-stay serviced apartments are legitimising intermediate-term housing, providing regulatory clarity and long-term support for co-living operators.
Government backing strengthens demand visibility
Government-linked initiatives further reinforce the sector’s outlook. Accommodation contracts for healthcare workers and demographic-specific tenders issued by public agencies offer demand visibility and institutional validation, strengthening the long-term sustainability of the co-living model.
As experts at International Investment report, co-living in Singapore is evolving into a structurally supported segment of the residential market. Regulatory tightening, moderate rental growth and foreign ownership constraints are shifting the advantage toward professional operators, making co-living an increasingly attractive proposition for both investors and tenants.