{"id":41674,"date":"2021-07-19T14:00:03","date_gmt":"2021-07-19T06:00:03","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=41674"},"modified":"2022-06-13T17:27:30","modified_gmt":"2022-06-13T09:27:30","slug":"how-circuit-breakers-boosted-co-living-demand","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/how-circuit-breakers-boosted-co-living-demand\/","title":{"rendered":"How Circuit Breakers Boosted Co-Living Demand"},"content":{"rendered":"
<\/div>

Young Singaporeans have turned to co-living as a flexible alternative to working from home at the cramped family flat or renting an apartment, says The Assembly Place founder Eugene Lim.<\/p>\n

Alongside the similarly structured coworking model, the concept of co-living has been on the rise for the past decade or so. Across the world, numerous co-living operators have sprung up in recent years, catering to the demands of an increasingly mobile workforce.<\/p>\n

Co-living provides residents with ready-to-occupy housing where furniture, utilities, maintenance and everyday needs such as wi-fi are all part of the package. Flexible leasing terms allow for hasty changes in circumstances or location. Meanwhile, a built-in community alleviates the loneliness that can come with living solo in a one-bedroom or studio apartment.<\/p>\n

\"assembly
The provision of spacious social areas where tenants can mingle and relax \u2014 like this stylish living room at The Assembly Place, Starlight Rd. \u2014 is one of the co-living model\u2019s key advantages. (Photo: The Assembly Place)<\/figcaption><\/figure>\n

This last aspect of co-living was always viewed as one of its greatest strengths, letting fresh arrivals to a city or those who\u2019d newly moved out of the family home plug into an instant social scene \u2014 like stepping onto the set of \u2018Friends\u2019. But when the need for social distancing arrived in tandem with the Covid pandemic in 2020, many commentators questioned whether co-living companies could survive the crisis.<\/p>\n

Here in Singapore, initially there was an uptick in vacancies at co-living spaces when many expats \u2014 who\u2019d comprised the majority of coliving residents in this country \u2014 departed for their homelands as the crisis developed last year. But those vacancies quickly disappeared, as co-living spaces here came to attract a growing clientele of local tenants.<\/p>\n

\"assembly
More and more young Singaporeans are seeking out the greater privacy co-living provides, as compared with remaining in the family flat. Pictured here, a room at The Assembly Place’s property at 103 Sophia Rd. (Photo: The Assembly Place)<\/figcaption><\/figure>\n

First, there was a wave of Singaporeans returning temporarily from work or school overseas, who were looking for flexible housing while riding out the crisis. Co-living spaces provided the ideal solution, with most offering residents a minimum contract of just a few months, while leasing an apartment generally requires a commitment of at least one year, often two.<\/p>\n

At the same time, many young Singaporeans were finding it difficult to remain productive working from home \u2014 a challenging task in a compact country such as this, where each person has an average of around 350 square feet of living space, as compared to more than 800 square feet per capita in the US (according to CBRE\u2019s Global Living Report 2020<\/a>).<\/p>\n

Microsoft\u2019s Work Trend Index 2021<\/a> study found that 70 per cent of Gen Z (aged 18-25) respondents in Singapore say they are \u201cmerely surviving or flat-out struggling\u201d with WFH. Though Singaporeans commonly remain in their parents\u2019 home until marriage, during the Covid crisis and Circuit Breaker lockdowns, a desire for privacy and the need for the space to work in peace has driven many young people to move out at a much earlier stage.<\/p>\n

\"assembly
The Assembly Place currently operates a total of 350 rooms across the country, managing $160 million worth of assets, including these handsome houses on Starlight Rd. (Photo: The Assembly Place)<\/figcaption><\/figure>\n

For those who are testing the waters or pondering a return to the parental home when all this is over and working at the office is once again the norm, coliving is a great option. \u201cWe\u2019ve seen a sharp increase in Singaporeans taking up spaces with us,\u201d says Eugene Lim, founder of the co-living company The Assembly Place. \u201cWhat we hear from them is that working from home, familiarity breeds contempt. Staying all day and night in the flat with their parents, there\u2019s just not enough space.\u201d<\/p>\n

Eugene says people in this position want somewhere they can enjoy a little privacy and efficiently work from home the next three to six months, or however long this situation lasts. \u201cThey don\u2019t want to be locked into a multi-year lease, and they don\u2019t want to have to buy furniture or set up connections for wi-fi or utilities and so on,\u201d he says. \u201cWith us, all that is provided for.\u201d After the initial three-month contract period, a tenant can either choose to extend or move out with a minimum of fuss.<\/p>\n

\"assembly
Finding a private space to work in peace during the circuit breakers has been a challenge for many, driving increased interest in co-living. Rooms at The Assembly Place properties tend to provide a desk where tenants can work without disturbances. (Photo: The Assembly Place)<\/figcaption><\/figure>\n

The Assembly Place was founded in 2019 and has expanded quickly but organically over the past two years. It now manages S$160 million worth of assets in Singapore, operating a total of 350 rooms across the country, at an occupancy of 98 per cent. By September this year, the company aims to be managing a total of S$250 million of assets with 600 rooms.<\/p>\n

With the vast majority (95 per cent) of its co-living properties under 5+5-year management contracts, Eugene says he has intentionally taken an \u2018asset light\u2019 approach to the business. This is in order to avoid the problems that have beset some other co-living operators, many of which lease strata assets and then sub-let them, leaving the coliving companies prey to market forces and with big monthly bills to pay.<\/p>\n

\u201cI\u2019ve been in real estate for 15 years, and co-living fulfils a certain gap in the market,\u201d Eugene says. \u201cThe reality is, this is a realty business and the numbers need to make sense. The highest price one of our rooms will fetch right now is around $2,800 per month. It wouldn\u2019t work to try to price a room at $4,000, because the tenant could just rent a two-bedroom apartment for that sum.\u201d Working on a management basis with the property owners, Eugene says, \u201cWe can price rooms according to supply and demand and ensure high occupancy.\u201d<\/p>\n

\"eugene
Founder of The Assembly Place, Eugene Lim has worked in property for more than 15 years. Over the past year, \u201cWe\u2019ve seen a sharp increase in Singaporeans taking up spaces with us,\u201d he says. (Photo: The Assembly Place)<\/figcaption><\/figure>\n

A lot of so-called co-living properties might more accurately be described as short-term flat-shares. With The Assembly Place, Eugene has strictly established spaces within singular residential blocks, rows of landed properties or shophouses, ensuring each coliving unit is centred around shared social spaces and games rooms.<\/p>\n

\u201cThat social environment, where you can have a drink at the end of a day or chat at lunch, is more important than ever at the moment, now we can\u2019t see our workmates,\u201d Eugene says. This is especially true for single-person households, at risk of isolation during lockdown. With co-living, however, you can have the space you want and the privacy you need \u2014 without ever feeling alone.<\/p>\n

–<\/p>\n

Are you looking for a co-living space? Let us know in the comments section below or on our Facebook post<\/a>.\u00a0<\/b><\/h2>\n

If you found this article helpful, 99.co recommends Will startups drive co-living in Singapore?<\/a> and Common problems when living with the landlord or other housemates<\/a>.<\/span><\/p>\n

Looking for a property to buy or rent? Find your dream home on\u00a0Singapore\u2019s largest property portal 99.co<\/span><\/a>! If you have an interesting property-related story to share with us, drop us a message\u00a0here<\/span><\/a>\u00a0\u2013 we\u2019ll review it and get back to you.<\/p>\n","protected":false},"excerpt":{"rendered":"

Young Singaporeans have turned to co-living as a flexible alternative to working from home at the cramped family flat or renting an apartment, says The Assembly Place founder Eugene Lim. Alongside the similarly structured coworking model, the concept of co-living has been on the rise for the past decade or so. Across the world, numerous…<\/p>\n","protected":false},"author":118,"featured_media":41703,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53653,53589,57131],"tags":[56514,56515,56516,56517,53658,55928],"persona":[],"class_list":{"2":"type-post","16":"entry","17":"has-post-thumbnail"},"acf":[],"yoast_head":"\nHow Circuit Breakers Boosted Co-Living Demand - 99.co<\/title>\n<meta name=\"description\" content=\"Across the world, numerous coliving operators have sprung up in recent years, catering to the demands of an increasingly mobile workforce. 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