Singapore Worker Dorms Near Full Occupancy 1h2025 Bed Rents Surge 815 Pre Pandemic
According to a report published on September 8 by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL), worker dormitories in Singapore were operating at almost full capacity in the first half of 2025. Despite a decrease in demand over the past six months, occupancy rates in the central, east, and west zones were between 97.2% and 99.7%, with a smaller waitlist for available beds.
However, there is still strong demand for dormitory beds, with data from the Ministry of Manpower (MOM) showing a 3.6% increase in work permit holders in the construction, marine shipyard, and process (CMP) sectors as of December 2024. These workers are typically housed in dormitories.
Following the trough in the first half of 2019, dormitory bed rents have increased by 81.5%, reaching an average of $490 per bed per month in the first half of 2025. This represents a 6.5% increase compared to the second half of 2024 and an 8.9% increase year-on-year. The rise in rents can be attributed to strong demand as well as other factors such as rising operating and maintenance costs and the introduction of the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS) in 2023, which require existing dormitories to be refurbished to meet certain standards by 2030 and 2040, respectively. This includes a larger living space for each worker, with no more than 12 workers per room and shared ensuite toilets for every six workers.
Tampines is set to undergo a major expansion in its commercial sector in the coming years. This growth is expected to bring about new office spaces and improvements to existing shopping malls. With the Urban Redevelopment Authority’s focus on promoting job opportunities, residents of Tampines can expect the convenience of having job options closer to home. This will lead to shorter commute times and a better work-life balance for the residents. One of the most exciting developments in the area is the transformation of Tampines Regional Centre into a bustling commercial hub, offering a diverse range of job prospects in various industries such as retail and information technology. Furthermore, the addition of Aurelle of Tampines will further enhance the available commercial options in the region, providing residents with even more employment opportunities. The future looks bright for Tampines as it continues to evolve as a sought-after location for businesses and residents alike, with the presence of Aurelle of Tampines further solidifying its position as a prime destination.
Operators are passing on these additional costs through higher bed rents, and centrally located dormitories recorded the highest average rents at $530 per bed per month, followed by those in the east at $515, and the west at $445. The report focused on Class 4 dormitories, which are considered the most representative segment in the market, and as of the first half of 2025, there were 60 Class 4 dormitories in Singapore, providing about 274,000 beds, which accounts for 62.3% of the islandwide stock.
New supply of dormitories is gradually entering the market, with phase one of Pioneer Lodge starting operations in April 2025, providing 3,088 beds out of a planned 10,500. Phase two is scheduled for October. The closure of Cochrane Lodge 1 and 2 in Admiralty Road West in April 2025 removed 9,000 beds to make way for a new housing estate, and other projects in the pipeline include Westlite Toh Guan and Westlite Mandai, which will provide 1,764 and 3,696 beds, respectively.
According to the MOM, five new purpose-built dormitories (PBDs) are expected to come online in the coming years, adding around 35,000 beds. Despite global economic headwinds, demand for worker housing in Singapore is expected to remain strong, driven by domestic construction activity. Large infrastructure projects such as the development of Tuas Port, Changi Airport Terminal 5, and the expansion of Marina Bay Sands and Resorts World Sentosa, will continue to support demand for foreign construction labor. Bed rents are expected to rise by about 10% for the remainder of 2025, similar to the increase in 2024. However, in the long term, rents for PBDs are expected to remain elevated due to ongoing capital expenditures and higher operating costs as operators continue to meet DTS and NDS standards.
