The most compelling factor is “stickiness”. While traditional rentals see constant turnover, co-living residents with operators like Casa Mia stay for an average of 14 months—twice the industry norm. The differentiating value proposition? Community. When you're far from home, built-in social connections aren’t just nice to have—they’re essential. Co-living operators have cracked the code on instant community building, addressing urban loneliness for newcomers.

Investor behaviour shows a clear trend. JLL’s 2025 Co-living Investor Sentiment Survey, a follow-up to the inaugural 2023 survey, shows a dramatic shift in investment strategy. 65% of investors now target internal rates of return below 15%, up from just 27% in 2023. This isn't investors getting less ambitious; it’s the market becoming mainstream and less risky.

The sector has moved from an opportunistic play to value-add and core-plus strategies, with occupancy rates stabilising at a healthy 85-95% level and gross operating profit margin hitting 55-70%. When institutional capital views your sector as established enough for lower returns, you know you've made it.

Our research reveals compelling private investment trends around adaptive reuse and property conversion. Whether it's hotels, offices, or hostels, investors are discovering and unlocking value in underutilised buildings to become thriving co-living spaces. This flexibility showcases co-living's potential for systematically repositioning underperforming assets.

For investors, developers, or those fascinated by urban evolution, Singapore's co-living story offers valuable insights into how a niche concept becomes a mainstream market. The sector's journey from growth to maturity reveals important trends in changing lifestyle preferences and the future of city living.

Want the full picture? JLL’s comprehensive report dives deeper into investment strategies, demographic shifts, and what this means for Singapore's broader accommodation landscape.