DETERMINING AN OPERATIONALLY AND FINANCIALLY VIABLE CO-LIVING BUSINESS MODEL IN SINGAPORE

Abstract

Purpose – With the co-living asset class gaining traction in Singapore in recent years, this research aims to investigate factors that lead to the successful operational and financial management of co-living companies.

Originality and Value – Recognizing that the Singapore context is unique in terms of housing policies, land use regulations, and sociocultural norms, this dissertation is believed to be the first of its kind to contextualize best practices of international co-living companies for the Singapore market through comprehensive primary and secondary research. This dissertation aims to extend the existing literature pertaining to the management of the co-living asset class, particularly in the context of Singapore.

Design, Methodology and Approach – A three-pronged approach has been adopted in this dissertation. Firstly, case studies were included to examine and contextualize best practices and pitfalls among global co-living companies. Secondly, primary data analysis in the form of survey questionnaires had been adopted to understand localized factors that attract tenants to stay in co-living facilities. Thirdly, primary data analysis in the form of interviews were conducted with authoritative stakeholders familiar with the local and global co-living market. The interviewees include: an investment analyst currently working at Hmlet, the largest co-living facility in Singapore; a Head of Research at ARA Asset Management; and a Deputy CEO at the Urban Redevelopment Authority

Findings and Implications – To attract tenants and improve financial sustainability, there is a need for local co-living companies to be demand-centric and specifically tailor their lifestyle offerings for the Singapore market. To ease cash flow pressures, creative financing such as the issuance of asset-backed securities backed by co-living tenants’ rental receivables could also be considered.