Investors target industrial sites for dorms

Singapore Business Review

Issue 113

Redevelopment interest grows alongside logistics and storage plays.

Investors target industrial sites for dorms

Industrial sites with potential for redevelopment into worker dormitories are drawing stronger institutional interest, buoyed by Singapore's construction upcycle and persistent housing demand from foreign workers.

"Alternatives such as worker dormitories remain quite strong" Yangliang Chua, head of research and consultancy for Southeast Asia at Jones Lang LaSalle, Inc. (JLL), told Singapore Business Review. "The state is also making significant capital investments in road improvement works and other infrastructures, ensuring steady demand for foreign workers," he continued.

"On top of that, policy measures will continue to support the demand for worker dormitories. This is not just for construction workers, but increasingly for healthcare and other activities, which will further support this cluster of demand," he added.

Industry plans

Singapore’s construction industry is projected to grow 4.1% annually through 2029, supported by projects such as Changi Terminal 5, according to Research and Markets. That growth is already translating into pressure on worker accommodation.

The city-state had 1,441 facilities providing 439,198 beds as of end-2024, according to a report by the Dormitory Association of Singapore Ltd. and Knight Frank LLP. Purpose-built dormitories accounted for almost two-thirds of capacity.

Occupancy remained tight at 96.7% on average, with monthly rents climbing to $390 to $510 per bed, averaging $460—well above $270 before the COVID-19 pandemic. Central locations commanded the highest rents at $510 per bed.

To ease the shortage, the Ministry of Manpower announced in April that six new purpose-built dormitories would add 45,000 beds over the next six years, starting with a 2,400-bed facility at Jalan Tukang in early 2026.