The Assembly Place pushes into foreign worker housing as co-living growth lifts revenue

SINGAPORE - Co-living is no longer an option limited to expatriates and young professionals, with operator The Assembly Place (TAP) now expanding into foreign worker housing, marking a shift from its traditional markets.

The move was formalised on March 11 through a joint venture to develop and operate its first purpose-built dormitory in Seletar North, applying its community-driven co-living model to a new segment.

Rather than simply leasing out rooms, TAP’s community-driven model focuses on enhancing the well-being of its residents through regular events and workshops to foster social interaction and cohesion.

TAP’s foray into foreign worker housing reflects its view that the co-living sector in Singapore can grow further by targeting a wider range of resident groups.

Of its five brands, three are now focused on students, which the company sees as a resilient tenant base. Its portfolio currently includes purpose-built student housing; supervised homestays for younger students; and intergenerational housing for students and seniors.

It also includes co-living apartments and shophouses; hotels and serviced apartments for short-stay travellers and young professionals; and hostel-style accommodation for foreign healthcare workers.

So far, this unique model has worked in drawing tenants, helping TAP record strong performance for the 2025 financial year.

In its maiden results as a Singapore Exchange-listed company released on March 30, the firm said its revenue rose 42.4 per cent to $27 million for the financial year ended Dec 31, 2025. Net profit for the year also increased 6.4 per cent to $6.6 million.

TAP made its SGX debut on the Catalist board on Jan 23, becoming the second company to list here in 2026. It is the second co-living operator to list on the SGX after Coliwoo, which was spun off from its parent LHN Group and began trading on the mainboard in November 2025.

More than 93 per cent of TAP’s growth came from the core business of community-driven stays, which saw revenue rise to $25.2 million, compared with $17.7 million a year ago. This was underpinned by a significant increase in the number of keys under its management, from 2,106 in 2024 to 3,422 in 2025 across 100 property assets.

Occupancy rates also grew to 94.4 per cent, up from 91 per cent a year ago.

Its other property-related services, which include property management, netted $1.8 million – 157.1 per cent higher than the previous year.

It also has investments in several other properties, owning stakes of between 5 per cent and 20 per cent, with a plan to exit in three to five years after the initial investment. But these did not generate returns in 2025.

Still, TAP remained confident of its business outlook, noting a pipeline of projects that would contribute around 441 keys in Singapore and Malaysia. This is in addition to the 886-bed foreign worker dormitory as well as a 163-room hotel in Tras Street that it recently acquired through another joint venture.

The company had previously outlined its target of 10,000 keys by 2030.

Chief executive Eugene Lim said the company’s performance was supported by strong demand for its core co-living segment.

“We expect the new properties being added in financial year 2026 to contribute positively to our revenue. With the funds raised from our IPO, we are well-positioned to further enhance our service offerings, deepen market penetration and expand our reach as we work towards our target of 10,000 keys by 2030.”

Singapore’s co-living sector is maturing and displaying more sustainable growth, according to a September 2025 report by real estate services firm JLL.

It noted that the room inventory here has expanded by about 17 per cent from 2023 to 2025, while the top five operators including TAP and Coliwoo maintain a stable market concentration at 65.3 per cent of total stock or under 10,000 rooms as at the second quarter of 2025.

“Despite some minor competitive repositioning, within the top tier, this minimal shift demonstrates the sector’s fundamental stability and evolution into a mature, less volatile investment environment that may appeal to investors seeking steady returns in the co-living space,” JLL said.

The report also noted that a growing student demographic is driving demand, while the co-living sector is also attracting institutional investment, with the Government also supportive through state property repurposing and demographic-specific projects for such niche community segments.

TAP’s shares closed flat on March 30 at 24 cents.