With her home renovation coming up, Emily, 30, began looking for temporary housing months in advance and found the task more challenging than expected.
The renovation would have taken three months, but most landlords in the traditional rental market prefer tenants who are willing to stay for a longer period. Her budget did not allow her to stay in hotels or serviced apartments with shorter leases.
Over the years, I have heard many similar stories from people from all walks of life. They include the young and single who can’t wait to fly the coop, couples waiting for their Build-To-Order (BTO) flats to be completed, foreign students, and expats who want to experience living in different areas.
Even though their circumstances differed from Emily’s, one theme resonated: the need for more flexible and affordable rental housing options.
Currently, the minimum lease term for private residential properties is three months. In a Housing Development Board (HDB) flat, it is six months. Landlords are not permitted to rent out their flat or rooms on a short-term basis as the government wants to stabilise the local rental market.
Renting a condo or a HDB flat for a short timeframe can, however, be inefficient and costly because of moving expenses, agent fees, and lack of furnishings and ready-to-use utilities. Additionally, most landlords prefer tenants who can commit to at least a year to reduce paperwork. Needless to say, this poses a challenge for those needing shorterterm accommodation.
The Rise of Co-living
Co-living, which can help bridge the gap between landlord preferences and tenant demands in rental housing, is a model with shared living spaces. Each resident has a room and can access communal spaces to build community.
Besides offering a nice balance between privacy and community, co-living concepts like Coliwoo also offer flexible lease terms, ranging from one night in co-living hotels to six nights in co-living serviced apartments and three months in co-living residences.
It is an increasingly popular concept, not just in the commercial market. Singapore Land Authority (SLA) recently announced that it intends to reserve more state properties for co-living. As societal trends turn towards this concept, SLA says the move corresponds with market demands.
Bridging the Gaps
The flexibility of co-living counteracts the rigidity of rental housing. Instead of having to sign a lease of an average minimum duration of six months to a year, renters enjoy shorter periods of commitment even if it’s for just one night.
This is exceptionally helpful for homeowners looking for temporary accommodation, especially those who don’t want to commit to concrete rental timelines like Emily, unmarried couples who want to try living together before applying for a house, or naturalised citizens exploring suitable neighbourhoods to settle down in.
However, according to current ERA Singapore data, home ownership remains a top priority for those in their 20s, and co-living should not be confused with or considered a replacement for home ownership. Rather, it complements Singapore’s existing rental market, which faces certain constraints that limit flexibility.
The issue of flexibility isn’t the only one at stake here. Even though condo and HDB rental prices have stabilised in recent months, Singapore Real Estate (SRX) finds they remain high, particularly when compared to co-living costs.
Co-living rooms offer a more competitive price point than serviced apartments and hotels. Besides furniture, utilities, and maintenance services that are part of the agreement, renters also have access to communal facilities, such as pools, lounges, gyms, and barbecues, making it a much more cost-effective option.
Comparatively, co-living units in Orchard can cost about $2,500 a month compared to $4,000 for similar units in the same neighbourhood. Similarly, in less central locations such as Boon Lay, co-living units cost around $1,500, compared to $2,000 for rental apartments.
Apart from practical reasons, co-living revives the kampung spirit of community and solidarity that Singapore was once known for. Regular get-togethers strengthen the social fabric of neighbourhoods by providing opportunities for residents to get to know one another.
Different contexts of co-living
When considering various demographics, co-living can take on quite a different look. It provides affordable corporate housing for small and medium businesses (SMEs) and startup companies expanding overseas.
Essentially, these businesses bring in their overseas teams for cross-border sharing and meetings for knowledge transfer, so they only need temporary housing for employees.
With Singapore’s healthcare sector employing foreign staff to meet the demand for nurses, lodging for staff can also take the form of co-living to provide these individuals with a holistic living environment.
Providing co-living options to seniors could also be a solution to Singapore’s ageing problem. Its community-building opportunities alleviate loneliness and isolation among the elderly.
It is even possible to extend co-living spaces to vulnerable communities to shelter them while they rebuild their lives.
Global Phenomenon
Singapore is not the only country with coliving. It took shape in major urban centres like New York, San Francisco, and London in the 2010s, driven by the need for affordable housing, a sense of community, and the rise of the sharing economy.
In New York, for example, coliving properties are abundant in trendy neighbourhoods such as Brooklyn and Manhattan, providing access to public transportation and proximity to work hubs. In these cosmopolitan areas, residents’ housing needs for convenience, flexibility, and community are all answered.
Singapore’s housing policy is considered one of the best in the world, with countries such as the US and Australia taking note. However, it can be further elevated with the flexible nature of co-living properties, which bridges the gaps in areas where these policies fall short.
As the co-living concept merges with independent living demands and expands into new applications, it will one day become the norm of living arrangements.
The future of this industry excites me.
