_ Landmark First Edition of the Worker Dormitories Report

Dormitory Association of Singapore and Knight Frank Singapore Present Landmark First Edition of the Worker Dormitories Report

February 05, 2025

First in a series highlighting trends, challenges, and opportunities in

Singapore’s migrant workforce accommodation

Singapore, 5 February 2025 – The Dormitory Association of Singapore Limited (DASL) and Knight Frank Singapore announced the launch of the inaugural edition of the Worker Dormitories in Singapore report as part of a research initiative in partnership. This first-of-its-kind publication highlights the significant evolution of worker dormitories in Singapore.

Singapore is today a developed economy and a leading business and financial hub in Asia. Its reliance on migrant workers has grown in tandem with its progress, positioning worker dormitories as a unique real estate type integral to the nation’s major manufacturing engines. The post-pandemic spike in the migrant workforce outpaced dormitory supply, creating opportunities but also challenges for the sector. Dormitories have evolved from makeshift structures to factory-converted spaces and modern, purpose-built facilities offering safe, hygienic, and amenity-rich housing. They remain vital to industries critical to Singapore’s economy, including construction, marine shipyard, and process (CMP) sectors.

The inaugural Worker Dormitories in Singapore H2 2024 report explores these challenges and opportunities, providing an analysis of trends shaping this niche real estate segment.

Key Insights
The report provides critical data and perspectives, including:

Current Landscape: Singapore’s dormitory market consists of 1,441 facilities housing 439,198 beds. Purpose-built dormitories (PBDs), which account for 63.5% of total capacity, are a key focus due to their importance in meeting workforce housing needs.

Demand and Occupancy: Singapore’s dormitories maintained near-full occupancy, with an average islandwide rate of 96.7% in H2 2024, driven by stable economic recovery and strong labour demand in key industries.

Rising Rents: Bed rents have surged significantly, with monthly rates ranging from S$390 per bed per month (pb pm) to S$510 pb pm and an islandwide average of S$460 pb pm, compared to pre-pandemic levels of S$270 pb pm. Centrally located dormitories command the highest rents, reaching up to S$510 pb pm.

Investment Momentum: 2024 saw heightened investor activity, with notable acquisitions such as the S$63.5 million sale of Homestay Lodge and Bain Capital’s reported impending S$750 million purchase of Avery Lodge.

Regulatory Shifts: The Foreign Employee Dormitories Act (FEDA) continues to shape housing standards, with the Ministry of Manpower’s new Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) driving improvements in living conditions.

Expanding Workforce: As of June 2024, there were over 442,900 work permit holders in the CMP industries, reflecting a 24.5% increase since December 2018.
A Sector of Opportunity and Challenges
As companies strive to meet increasing demands for labour in urbanised cities such as Singapore, the quality of accommodations provided to workers will significantly affect overall job satisfaction, employee turnover, and productivity levels. As such, a report that tracks some of the performance indicators for the worker dormitory sector on a regular basis can shed some light on what has traditionally been a fairly opaque real estate sector.

Johnathan Cheah, President, DASL said: “DASL is committed to furthering its cause to drive excellence in dormitory management, ensure quality living standards, and empower operators to deliver quality accommodation for Singapore’s migrant workers across the various economic sectors”.

He added, “Through this report, we hope to promote greater awareness for the public, potential investors and industry players to gain an appreciation of the real estate performance, trends, prevailing challenges and outlook of this niche sector within the larger ambit of the Singapore’s industrial engines.”

Leonard Tay, Head of Research at Knight Frank Singapore added: “Foreign worker dormitories can generate high yields for owners, as strong demand for places to house foreign workers presently exceed the limited supply of dormitories. This demand is expected to remain strong, as most of the CMP industries are expecting to increase the size of their respective workforce in the future.

“In 2025, bed rents could increase by 5% to 8% after having risen 10.8% in 2024. As normalisation returns to these industries, we foresee the growth rate easing into a more predictable, moderate and steady pattern, against the aggressive increases witnessed in 2023.”

“We are honored to collaborate with DASL on this groundbreaking initiative, which not only provides valuable insights into the current state and performance of worker dormitories but also lays the groundwork for informed decision-making by stakeholders in the industry,” he added.

Future Editions
This first edition of the report is part of a larger research programme that will see the publication of subsequent half-yearly reports. These reports aim to track market performance, regulatory developments, and investment trends in the worker dormitory sector, offering stakeholders an understanding of this critical asset class.

Download the full report here.

For media enquiries, please contact:
Knight Frank Singapore
Michelle Bong Lejtenyi

Senior Manager, Marketing & Communications, Knight Frank Singapore

michellebong.lejtenyi@sg.knightfrank.com | +65 8893 8248 | +65 6228 6822

Leanne Teo

Director, Marketing, Communications, Legal and Compliance, Knight Frank Singapore

leanne.teo@sg.knightfrank.com | +65 9188 8228 | +65 6228 6825

Dormitory Association of Singapore Limited
Nalini Naidu
Principal Publicist

The Rainmaker Marketing Group

nalini.naidu@therainmaker.com.sg

+65 9888 3198 | +65 96333198

Notes to Editors

About Knight Frank

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has over 27,000 people, across more than 740 offices in over 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. Knight Frank has a strong presence in Singapore with a head office and two subsidiaries: Knight Frank Property Asset Management and KF Property Network. For further information about the Company, please visit www.knightfrank.com.sg.

About Dormitory Association of Singapore Limited (DASL)
Founded in 2012 by the Purposed Built Dormitory Operators, DASL is a non-profit, independent trade association in Singapore led by 10 Council Members and leading dormitory operators in Singapore. As the respected and collective voice of the dormitory industry, DASL seeks to advance the interests of the industry through insights, education, and strategic collaborations. DASL works in close partnership with agencies including Ministry of Manpower, Building & Construction Authority, JTC Corporation, Migrant Workers’ Centre and other related trade associations and organisation to facilitate communication and strengthen understanding among stakeholders.

This report is published for general information only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal responsibility can be accepted by Knight Frank Research or Knight Frank for any loss or damage resultant from the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank in relation to particular properties or projects. Reproduction of this report in whole or in part is allowed with proper reference to Knight Frank Research.