Foreign professionals and students drive housing demand in Singapore

More expats are turning to co-living options.

Demand for housing in Singapore is driven by foreign professionals, students, and singles.

Citing data from the Ministry of Education and Immigration and Checkpoints Authority, CBRE reported that the number of foreign student pass holders in Singapore grew by 25% year-on-year to 79,300 in January 2023.

Meanwhile, the expatriate population rose to 383,900 in 2023.

"Rental housing demand in Singapore has historically been driven by expatriates, particularly working professionals with S Passes or Employment Passes," CBRE stated.

"While many still rent private or public apartments, more are turning to co-living options following a 50% growth in rents from 2021-2022, seeking flexibility and community elements," CBRE added.

Co-living properties are recommended investment assets by CBRE in the living sector, with a four-star rating.

CBRE noted that co-living assets are affordable and offer strong community elements.

Meanwhile, CBRE observed a shift in the trend of locals living in family homes until marriage to qualify for subsidised public housing. Today, more are choosing to rent due to rising singlehood rates and shifting lifestyle preferences.