CMP work permit holders rose 24.5% since 2018: Knight Frank

The demand for foreign workers has steadily risen following the reopening of international borders in 2022.

Singapore had 442,900 work permit holders in the Construction, Marine Shipyard, and Process (CMP) industries as of June 2024, a 24.5% increase from December 2018, Knight Frank reported.

The firm said the demand for foreign workers has steadily risen following the reopening of international borders in 2022.

There are 1,441 worker dormitories in Singapore, accommodating 439,198 beds. Class 4 dormitories (1,000+ beds) dominate the market, comprising 63.3% of total bed supply.

Occupancy rates remain high at 96.7% in H2 2024, with dormitories in the east and west nearly full. The central zone experienced a slight decline, falling from 98.1% in H1 2024 to 93% in H2 2024.

The Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) will reduce overall bed supply as dormitories are upgraded. Two new MOM-built dormitories will add 2,400 beds in Tukang (2026) and 7,200 beds in Sengkang (2028).

Bed rents have risen 70.4% since H1 2019, reaching S$460 per bed per month (pb pm) in H2 2024. Rents are highest in the central zone ($510 pb pm), followed by the east (S$475 pb pm) and west ($390 pb pm).

With supply constraints, Knight Frank noted rents are expected to rise another 5%-8% in 2025, following a 10.8% increase in 2024. Strong demand for foreign workers and regulatory changes will continue to push rental prices upward.

Investor interest in worker dormitories has surged, with Homestay Lodge (Kaki Bukit Avenue 3) sold for $63.5m. Bain Capital is also nearing a deal to acquire Blackstone’s Avery Lodge for $750m.