Operators that have begun upgrading facilities are already passing on costs through higher bed rents, while others are expected to follow suit (Photo: Samuel Isaac Chua/EdgeProp Singapore)
In Singapore, worker dormitories across the island were operating at near full occupancy in 1H2025, according to a joint report by Knight Frank Singapore and the Dormitory Association of Singapore Ltd (DASL), published on Sep 8.
Occupancy levels in the central, east, and west zones ranged between 97.2% and 99.7%, despite demand pressures easing over the past six months, as reflected in a smaller waitlist of prospective workers awaiting the next available bed.
Underlying demand remains strong. As at December 2024, Ministry of Manpower (MOM) data showed 456,800 work permit holders in the construction, marine shipyard, and process (CMP) sectors — a 3.6% increase y-o-y. CMP workers are typically housed in dormitories.
Since the pre-pandemic trough of $270 per bed per month (pb pm) in 1H2019, average monthly dormitory rents have climbed 81.5% to $490 pb pm in 1H2025. This represents a 6.5% increase compared to six months earlier (2H2024), and an 8.9% y-o-y rise.
The upward momentum in rents is not only driven by resilient demand for beds, but also by other factors. Other factors include higher operating and maintenance costs amid persistent inflation in recent years.
In addition, the Dormitory Transition Scheme (DTS) and New Dormitory Standards (NDS), introduced by the Ministry of Manpower in October 2023, will require existing dormitories to be refurbished to meet the prescribed standards by 2030 for DTS and by 2040 for NDS. For example, each worker must be allotted a larger living space, with no more than 12 to a room and ensuite toilets shared among every six workers.
Each worker must be allotted a larger living space, with no more than 12 to a room and ensuite toilets shared among every six workers (Source: DASL)
Operators that have begun upgrading facilities are already passing on costs through higher bed rents, while others are expected to follow suit.
In 1H2025, centrally located dormitories recorded the highest rents, averaging $530 pb pm, followed by those in the east at $515 pb pm. In the west, which houses the largest number of dormitories and beds, the average was lower at $445 pb pm.
The report focused on Class 4 dormitories (with 1,000 beds and above), which are considered the most representative segment in an otherwise opaque market. As at 1H2025, there were 60 Class 4 dormitories in Singapore, providing about 274,000 beds — equivalent to 62.3% of the islandwide stock.
Read also: Bed rents for workers’ dorms could grow 5% to 8% in 2025: Knight Frank
New supply is gradually entering the market. Phase One of Pioneer Lodge — comprising 3,088 beds within the planned 10,500-bed facility — commenced operations in April, with Phase Two, comprising 7,412 beds, scheduled for October.
Phase One of Pioneer Lodge — comprising 3,088 beds within the planned 10,500-bed facility — commenced operations in April, with Phase Two, comprising 7,412 beds, scheduled for October (Picture: Wee Hur)
April of this year marked the closure of Cochrane Lodge 1 and 2 at Admiralty Road West, which removed 9,000 beds to make way for a new housing estate.
Other projects in the pipeline include Westlite Toh Guan (1,764 beds, targeted for 4Q2025) and Westlite Mandai (3,696 beds, targeted for 1Q2026). Two dormitories developed by MOM are also slated for completion: a 2,400-bed facility at Tukang in the west by 2026, and a 7,200-bed facility in Sengkang by 2028.
The newly completed Westlite Ubi by Centurion Corp (Photos: Centurion Corp)
The eventual impact of these projects remains to be seen, given their differing ownership and operating structures compared to privately operated dormitories.
According to 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, including widespread tariffs recently announced by the US Trump administration, demand for worker housing in Singapore is likely to remain supported by strong domestic construction activity.
Read also: Centurion master leases property in Hong Kong's New Territories for workers' accommodation
Mega infrastructure projects — such as the continued development of Tuas Port, Changi Airport Terminal 5, the Marina Bay Sands expansion, and Resorts World Sentosa 2.0 — are expected to sustain demand for foreign construction labour.
For the remainder of 2025, bed rents are forecast to rise by about 10%, similar to the 10.8% increase recorded in 2024. As operators continue to modify facilities to meet DTS and NDS standards, rents for PBDs are expected to remain elevated in the medium to long term, underpinned by ongoing capital expenditures and higher operating costs.