Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
In Singapore, the latest joint report by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL) has revealed that worker dormitories were operating near full capacity in the first half of 2025. Despite a slight decrease in demand over the past six months, with a smaller waitlist for available beds, occupancy rates in the central, east, and west zones remained high, ranging between 97.2% and 99.7%.
The report also highlighted that underlying demand for dormitory beds remains strong, with 456,800 work permit holders in the construction, marine shipyard, and process (CMP) sectors as of December 2024, a 3.6% increase compared to the previous year. These workers typically reside in dormitories.
Advertisement
However, the rise in dormitory rents, which have climbed 81.5% from $270 per bed per month in the first half of 2019 to $490 in the first half of 2025, cannot be solely attributed to demand. Other factors, such as higher operational and maintenance costs due to persistent inflation, have also contributed to the surge. Additionally, the implementation of the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) in October 2023, which require existing dormitories to undergo refurbishment by 2030 and 2040 respectively, has led to higher rents as operators pass on the costs of upgrading facilities.
In the first half of 2025, the average monthly rent for centrally located dormitories was the highest at $530 per bed per month, followed by those in the east at $515 and the west at $445. However, the report focused on Class 4 dormitories, which are considered the most representative segment in the market, with 60 of these dormitories providing about 274,000 beds, equivalent to 62.3% of the island’s total dormitory stock.
Advertisement
New supply is gradually entering the market, with Pioneer Lodge’s Phase One, which consists of 3,088 beds, already operating since April and Phase Two, which adds another 7,412 beds, scheduled for October. However, the closure of Cochrane Lodge 1 and 2 at Admiralty Road West in April, which removed 9,000 beds to make way for a new housing estate, has partially offset this new supply. Other upcoming projects include Westlite Toh Guan, with 1,764 beds targeted for completion in the fourth quarter of 2025, and Westlite Mandai, with 3,696 beds targeted for the first quarter of 2026. Additionally, the Ministry of Manpower is developing two dormitories with a total of 9,600 beds, one in Tukang and the other in Sengkang, to be completed in 2026 and 2028 respectively.
Advertisement
The URA Master Plan includes a significant element known as the North Coast Innovation Corridor (NCIC), which stretches from Woodlands to Punggol and encompasses key areas like Sembawang and Yishun. The aim of this corridor is to establish a thriving economic hub, fostering the growth of new jobs, commercial enterprises, and high-value industries in the North. Seletar Aerospace Park, already a part of this innovative cluster, is conveniently located just a short distance from Miltonia Close. This area continues to attract leading global aviation and engineering companies, further enhancing the potential of the NCIC. With the influx of businesses and employment opportunities in the North, the demand for quality housing nearby is expected to rise, giving properties like Miltonia Close EC in Yishun a competitive advantage. Be sure to check out Miltonia Close EC Yishun for more information.
Despite a challenging global economic climate, the demand for worker housing in Singapore is expected to remain strong, driven by ongoing mega infrastructure projects such as the development of Tuas Port, Changi Airport Terminal 5, and various tourism expansions. As such, bed rents are forecasted to rise by around 10% for the remainder of 2025, similar to the 10.8% increase seen in 2024. It is anticipated that in the medium to long term, rents for purpose-built dormitories will remain high, as operators continue to invest in meeting the DTS and NDS standards, leading to higher operating costs.