PRICE PREMIUM OF CO-LIVING SPACES IN SINGAPORE

Abstract

Objective: Co-living is gaining traction globally in the last few years and the number of co-living operators in Singapore is steadily increasing. This paper aims to investigate on the price premium charged by operators that contributes to the profitability and sustainability of the co-living business model.

Methods: Qualitative methods are used to determine the price premium charged by co-living operators in Singapore. The analysis is based on Hmlet, a co-living company that currently holds the biggest market share in Singapore. Results from Hmlet’s pricing model and a hedonic regression model was used to determine the price premium charged. Quantitative method in the form of an interview was done to find the reasons behind the price premium, why people are willing to pay for it, and the sustainability of the co-living business model.

Results: Out of 36 observations, the average price premium is 27.59%. Co-living spaces usually comes with a good location that is affordable, convenience and flexibility, and a sense of community. All of which contributes to the price premium that operators charge on co-living.