The Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore have unveiled the first edition of the Worker Dormitories in Singapore report, marking a significant step in understanding the evolution of migrant workforce accommodation in the city-state.
The report, released on 5 February 2025, sheds light on the current landscape, challenges, and opportunities within this niche real estate sector.
The report reveals that Singapore’s dormitory market comprises 1,441 facilities with a total of 439,198 beds. Purpose-built dormitories (PBDs) account for 63.5% of this capacity, underscoring their importance in housing the migrant workforce.
The sector has maintained a near-full occupancy rate of 96.7% in the second half of 2024, driven by robust economic recovery and labour demand in key industries.
Rising rents have been a notable trend, with monthly rates ranging from $390 to $510 per bed, averaging $460. This marks a significant increase from pre-pandemic levels of $270. The report also highlights heightened investment activity, including the $63.5m sale of Homestay Lodge and Bain Capital’s impending $750m purchase of Avery Lodge.
Regulatory changes, such as the Foreign Employee Dormitories Act (FEDA) and the Ministry of Manpower’s new Dormitory Transition Scheme (DTS), continue to shape housing standards. As of June 2024, the number of work permit holders in the construction, marine shipyard, and process (CMP) industries rose by 24.5% since December 2018.
Johnathan Cheah, President of DASL, emphasised the importance of the report in promoting awareness and understanding of the sector’s performance and challenges. Leonard Tay, Head of Research at Knight Frank Singapore, noted the potential for high yields in the dormitory sector due to strong demand and limited supply.
Future editions of the report will continue to track market performance and regulatory developments, providing valuable insights for stakeholders in this critical asset class.
