Co-living, a term used to describe a living arrangement that is something more than shared space, in growing in Asia, especially in China and Hong Kong.
Typically, a co-living facility will offer tenants small rooms but also shared facilities such as a TV room or a gym.
There is also a social aspect; some facilities have a manager who will organise events. As well as convenience and community, co-living facilities also claim to offer cheaper rent than an individual apartment.
Hong Kong is seeing a growing number of co-living developments – unsurprisingly given its status as the world’s most expensive housing market.
Young workers face the prospect of living with their family until they can afford to buy a small flat; ‘small’ often means less than 200 square feet.
At present, some developments described as co-living are no more than upmarket dormitories for budget-conscious students, while others are just shared apartments with different branding.
However, Denis Ma, Head of Research at JLL Hong Kong, says:
“Though current schemes in Hong Kong are built around affordable housing, there are some really interesting projects that will be opening soon where the communal space is quite significant and the operator has hired an activities officer to bring residents closer together.”
Recent co-living developments include Gaw Capital’s Campus Hong Kong in Tsuen Wan, which offers a gym and pool as well as common areas in a 12 storey building and SynBOX in Hung, M-Living in Wong Chuk Hang, which offers tiny (80-100 square foot rooms) with shared common areas, inclusive bills and cleaning facilities. Campus Hong Kong’s extra facilities do not come cheaply: a private room costs HK$20,000 per month.
From the property investor’s point of view, co-living offers an attractive opportunity to gain extra revenue from services and to be able to fit a larger number of rooms in a single building.
Hotel owners have also been converting underperforming hotels to co-living facilities.
Ma calculates that an owner of residential building could boost net operating income yield by 400 basis points if it was converted to a co-living facility, while a hotel’s conversion could boost the NOI yield by 300 basis points. Thus conversion to co-living could add substantially to a building’s value.
In China, the co-living trend fits with Beijing’s desire to build a residential rental market, which will boost labour mobility by allowing graduate workers to live in first tier cities such as Shanghai, where property costs have soared.
Operators such as You+, 5Lmeet and Mofang Gongyu – which has received funding from Warburg Pincus – house thousands of tenants in hundreds of buildings.
Their business model is underpinned by two factors: firstly support from the Chinese government and secondly the opportunity to reposition older or underused buildings.
In Singapore, affordable public housing is available to a large portion of the population and perhaps due to this, there is only a small portion of rental housing or co-living establishments, says Regina Lim, Head of Capital Markets Research – Singapore at JLL.
“One could argue the Singapore case study implies that co-living is born only in cities where housing is unaffordable.”
Some Singaporean companies are testing the water: CapitaLand’s serviced residence unit, The Ascott Limited, has created a new coliving brand ‘lyf’, which claims to be “designed and managed by millennials, for millennials.” Five properties across China, Singapore and the Philippines are slated for opening from this year to 2021.
lyf Funan Singapore will be part of CapitaLand’s integrated development Funan, which also includes retail, office and coworking spaces
Apartment space is not cheap in Tokyo, but years of deflation have been good for renters and so far the city has seen the development of only a few co-living spaces. Roam, in Akasaka, offers tenants a 340 square foot room with a balcony.
Shared spaces include a co-working space, multiple meeting rooms, a circus themed workout and Yoga room, and a shared commercial kitchen. Rooms can be leased for as little as a day and with a monthly cost of around US$3,000, Roam – which also has facilities in Miami, London and Bali – is closer to a serviced apartment than a space for long-term living.
Source : https://www.theinvestor.jll/news/asia-pacific/residential-multifamily/asias-millennials-open-co-living-market/
Thailand remains 54th in World Happiness Report’s ranking
As one would expect with lockdowns and physical distancing, the pandemic had a significant effect on workforce well-being. Falling unemployed during the pandemic is associated with a 12% drop in life satisfaction.
Gambling in Asia: Thailand and more
There is a large demand for gambling throughout Asia, which is detailed below in a comparison between various countries, such as Thailand and more.
One of the fastest growing industries in the world is the gambling industry. It is currently worth around $443.2 billion, and is expected to continue climbing to an estimated $647 billion by 2027.
Skin-lightening products market to reach US$31 billion by 2024
In emerging Asian and African economies, the natural aspiration to enhance one’s circumstances has led to rapid growth in the market for skin-lightening products, which is projected to reach US$31 billion by 2024.
Subscribe via Email
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...
Thailand BOI approves Biotech Projects Worth 2.4 Bln Baht ($78 million)
The biotechnology sector is part of the so-called BCG model (Bio, Circular and Green economy) which the Thai government has...
Diamonds are forever but “James Bond Island” in Phang Nga Bay may not
Thailand’s Department of Mineral Resources will assess the stability of the limestone karst towers, which make up the chain of...
Asia-Pacific sees 3.9% growth in deal activity in February 2021
The Asia-Pacific (APAC) region saw a 3.9% month-on-month growth in deal activity (mergers & acquisitions, private equity and venture financing...
Thailand to increase rice exports to 6 million tons this year
BANGKOK (NNT) – The Commerce Ministry has launched measures to increase rice exports to 6 million tons this year, valued...
- National1 week ago
Abuse against women still prevalent in Thailand
- Asean1 week ago
The Indonesia-Singapore Bilateral Investment Treaty Comes into Effect
- Vietnam1 week ago
Vietnam: Manufacturing to remain the key driver of growth
- Vietnam1 week ago
Vietnam Lao Cai popularises Sa Pa-Fansipan tourism trademark