SINGAPORE: The Assembly Place (TAP), a homegrown co-living pioneer, recently unveiled its 132nd property, marking a significant milestone in its expansion across Singapore.
Nestled at 161 Lavender Street, this newly launched co-living space is housed within a beautifully restored conservation building, featuring 76 co-living rooms spread across the upper two floors of a four-story annexe block. With a mix of three- and four-bedroom units, the property has already secured leases for nearly 90% of its spaces, showcasing the high demand for TAP’s innovative living solutions.
The rental rates at this new property are competitively priced, starting from $1,850 per month for a non-ensuite bedroom and ranging between $2,000 and $2,500 for en suite bedrooms, depending on the size. This strategic location and the thoughtful design of the co-living spaces have made it an attractive option for individuals seeking a blend of community living and personal comfort.
According to EdgeProp.sg, beyond the co-living spaces, TAP has taken on the management of the 25,000 sq ft commercial space on the lower two floors of the property, which is already over 60% leased. The first level is home to a diverse array of tenants, including clinics, a Chinese fusion restaurant, a café, a pet shop, a florist, and two retail shops, while the second level will feature a showroom and additional retail, dining, and service outlets.
The building, formerly known as Lavender Place, has been rebranded as Hafary House following its acquisition by Singapore-listed building materials supplier Hafary Holdings for $71.28 million in July 2022. This acquisition underscores the value and potential of conservation properties in Singapore’s dynamic real estate landscape.
TAP’s growth trajectory is set to continue with the management of four black-and-white colonial-era bungalows at Woodleigh Park, owned by the Public Utilities Board (PUB). These bungalows are being transformed into 30 premium co-living spaces, scheduled to be operational by the end of the year. The spaces will feature state-of-the-art communal areas and a landscaped courtyard with a cooking station. It will also host community events with a private chef, enhancing the living experience for its members.
Since its inception five years ago, TAP has rapidly expanded its footprint to 2,000 beds across 135 locations, with plans to reach 3,800 rooms by the first quarter of 2025. This growth is not just in numbers but also in the diversity of living options TAP offers, including student accommodation, lodgings for foreign healthcare workers, senior co-living, and homestays for students.
Eugene Lim, CEO and co-founder of TAP, emphasizes the company’s commitment to being a part of its members’ living journey, from their student days to their professional careers. With a database of over 3,500 past and present members, 75% of whom are aged 34 or under, TAP is well-positioned to cater to the evolving needs of its community. Lim’s vision is to provide a seamless living experience that supports members as they navigate different stages of their lives in Singapore.
Impact of co-living on SG’s property market & rental costs
The emergence of co-living spaces in Singapore has significantly influenced the property market and rental costs, presenting both opportunities and challenges. Co-living, which involves shared living spaces that offer communal amenities and a sense of community, has become an attractive alternative to traditional housing options due to its affordability and flexibility.
On rental costs
Co-living spaces have been instrumental in making housing more accessible and affordable in Singapore, a city known for its high cost of living. By sharing rent and utilities, individuals can significantly reduce their housing expenses. For instance, in a comprehensive write-up featured at the Singapore Property Wiki, the average rental cost for a one-bedroom apartment in the city centre is around S$3,000 per month, making co-living a more attractive option for many. This affordability is further highlighted by the wide range of co-living unit rates, which can start as low as S$800 and go up to S$2,550 per month, as reported by an article published by 99.co.
On property market
The growing popularity of co-living has also had a noticeable effect on the property market. Co-living spaces are often located in prime areas, which can drive up property values in these regions. In a published story by the Straits Times, it was reported that a technology entrepreneur was able to rent a co-living space in a prime area for $5,500 a month, significantly less than the S$8,000 he would have had to pay for a traditional apartment. This trend suggests that co-living is not only a viable option for individuals but also a lucrative investment for property owners.
Prospects
Looking ahead, the co-living market in Singapore is expected to continue growing, driven by the increasing demand for affordable housing and the changing preferences of young professionals and expatriates. A CNA story pointed out that as more state-owned buildings are converted into co-living spaces, the supply of these units is likely to increase, potentially leading to more competitive rental rates and further integration of co-living into the mainstream housing market.
Economic implications
The economic implications of co-living are multifaceted. Based on another CNA story, co-living operators benefit from high occupancy rates, often exceeding 95%, which is a testament to the demand for such living arrangements. Conversely, the rise of co-living could potentially lead to a shift in the traditional rental market, where landlords may need to adapt to the changing preferences of tenants.
Co-living operators’ influence on the future of homeownership
A JLL report pointed out that by managing properties on behalf of owners, they are changing the dynamics of property ownership, making it more feasible for investors to enter the market. This shift could lead to a more dynamic property market, where ownership is more about investment and less about personal living.
As they are, co-living spaces are not just about housing; they are also about community and social interaction. These spaces are designed to foster a sense of community, which can be a significant factor in the decision-making process for potential homeowners. As more people value community and social connections over traditional homeownership, the concept of co-living is likely to influence the future of homeownership by promoting a more communal living experience.
Co-living spaces
As these spaces continue to grow in popularity, they are likely to reshape the housing market, potentially leading to a decrease in traditional homeownership and an increase in co-living arrangements. This shift is not just about housing; it’s about redefining the concept of home and community in a modern, urban setting.