High costs hinder co-living investment growth in Singapore

Rising property prices and scarce suitable sites are slowing new co-living projects.

High acquisition and construction costs are preventing more investors from expanding in Singapore’s co-living sector, despite strong demand fundamentals, according to a report by JLL.

The report, Co-living in Singapore: From Growth to Maturity, found that 61% of investors cited high property prices and construction inflation as their top concern in 2025, warning that these costs are compressing potential returns on new projects.

Limited inventory of suitable properties was the second-most cited challenge, flagged by 52% of respondents, highlighting the difficulty of finding buildings that can be economically converted into co-living spaces. Another 48% pointed to limited liquidity and precedent transactions, which make it harder to benchmark values and plan exits.

The report said these supply-side constraints mean investors will need patient capital and more sophisticated strategies to grow in Singapore’s maturing co-living market.

“While challenges persist, particularly around acquisition costs and supply constraints, the sector's maturation has enabled more sophisticated approaches to overcome these barriers,” the report said.