Through new research, property consultancy CBRE has discovered that co-living markets in Asia Pacific have emerged for different demographics and preferences.
Apart from barriers to home ownership due to high residential prices, the disparity in transparency of regulations among different countries will be critical driving factors for co-living, according to CBRE.
The research has found that the sector has been more prominent in developed, higher cost markets such as Singapore, Japan, Australia, mainland China and Hong Kong SAR where opportunistic private investors have been more active.
Despite this, CBRE has found that co-living operators are still in the process of discovering their ‘market niche’.
Some spaces focus on young professionals and digital nomads with amenities such as co-working spaces, networking events and wellness facilities.
Others target students and graduates, offering developments near universities and educational institutions.
While some have proven to be successful, others have unlocked value via mergers with competitors to develop and grow further.
In 2022, Hmlet merged with European co-living provider Habyt via an equity share swap, as part of a consolidation effort to enhance competitive advantage in the co-living market.
