Co-living From residential to serviced apartments and hotels - RESEARCH - Edmund Tie
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Insight
Paper:
Shared
Space
RESEARCH
Co-living
From residential to
serviced apartments and hotels
Edmund Tie & Company Research www.etcsea.com
This forms part of our Shared Space series.
In this paper, we will focus on shared Co-living
spaces in the hospitality market.
Noun
The rise of sharing economy not only led to 1. Shared housing designed to support a
the growth of co-working spaces, but also an purpose-driven life.
increased popularity with communal living.
Co-living has become a trend in gateway 2. A modern and urban lifestyle that
cities where rents are high. This concept is values openness, sharing and
also being introduced in Singapore, with the collaboration.
first purpose-built co-living development Source: Urban Dictionary
scheduled to complete by 2020. In this paper,
we will discuss this growing trend and how it is
affecting the hospitality market.
Community building is the key to co-living.
Landlords differentiate themselves by providing
Co-living is making a comeback
social spaces and organising events. The
The concept of co-living existed since the goal is to encourage social engagement
1800s in Singapore when immmigrants lived and collaboration among residents. Some
in shophouses with shared kitchens and operators target tenants with similar profiles
bathrooms. The concept has become a lifestyle to ensure common interests within the
choice, especially popular among millennials. community. Many of these co-living landlords
Figure 1: The Collective. Source: The Collective
E D M U N D T I E & C O M PA N Y R E S E A R C H 2
Ascott
also collaborate with co-working operators as and cooking introduces
part of their offerings. facilities. Some lyf –
hotels are also
Co-living has been introduced in urban areas
converting
Live Your Freedom,
where rentals are high, like New York City,
their a co-living concept
London, Tokyo and Hong Kong. Examples
of established co-living operators include
properties designed by millennials
to co-living
The Collective in London (Figure 1), and apartments. For
for millennials.
U.S. operators such as Common, Ollie, and instance, Mojo
WeLive (Figure 2), a spinoff from co-working Nomad Aberdeen
operator WeWork. Real estate developers are Harbour by Ovolo Hotels
entering the co-living scene as well. American in Hong Kong, converted their hotel into a 65-
developers such as The Durst Organization, room, 250-bed co-living space.
Property Markets Group and NMS Properties
are testing the concept in Manhattan, Chicago Two of the pioneer co-live operators in
and Los Angeles, respectively. Singapore are Hmlet and Mamahome.
Established in 2016, Hmlet is a “tech co-living
In Hong Kong, Eton Properties converted company” with operations in Singapore and
their Mini Ocean Park Station into co- Tokyo. Hmlet leases units from landlords,
living apartments. Each of the 270 mini units redesigns and refurbishes them, and rents
ranges from 80-100 sq ft. Residents enjoy them out to tenants on shorter leases (at least
complimentary Wi-Fi, large social areas three months). In addition to rental services,
Figure 2: WeLive. Source: WeLive
E D M U N D T I E & C O M PA N Y R E S E A R C H 3
Hmlet also organises member events to build used to analyse More
its community. Hmlet recently extended their each concept’s co-living
market coverage to Hong Kong by acquiring popularity and
we r urban, which manages about 30 co-living utility rates for
concepts will
spaces. Mamahome supports residential unit planning purposes. emerge in
owners by managing the entire process. They
collaborate with igloohome, a digital smart lock
Information is then
presented on a
Singapore.
service provider, and Castlery, an online furniture real-time heatmap, so
retailer, to fit out the units for co-living. There students can find out how
are community managers to match like-minded crowded the areas are.
tenants based on their occupation and hobbies.
As part of Funan’s integrated development,
Serviced apartment operator The Ascott lyf Funan Singapore (opens in 2020) will have
Limited will open its first co-living apartment 279 residents. Incorporating data collected
under the brand lyf (live your freedom) in 2020. from SMU Labs, lyf Funan Singapore will offer
It targets young working professionals who social zones for talks, music jamming, social
want to live with like-minded people and enjoy kitchen, areas for sports and simply hanging
social interactions. out. There will also be business suites for
video conferencing and discussions. Like other
Extensive research was undertaken to ensure
community-centric spaces, lyf will organise
the success of lyf (Figure 3). Living lab, a
events and workshops ranging from TED Talks
collaboration between Singapore Management
to pop-up flea markets to encourage social
University (SMU) and Ascott, is situated at
interactions. The properties will be managed
Levels 1-3 of SMU Labs. The living lab is a
by lyf guards – young and sociable staff who
creative learning space with various social
may be residents themselves and perform
space concepts to facilitate experiential out-
similar duties to a community manager.
of-classroom learning. A variety of concepts
from event square, social kitchen and games Ascott’s second lyf development in Singapore,
room to various discussion and study areas lyf Farrer Park, will open in 2021. Ascott also
are available for students. The usage of these plans to open a lyf in Wu Tong, Dalian and
areas is tracked, and the data collected are Cebu in the next few years.
Figure 3: lyf @ SMU. Source: lyf
E D M U N D T I E & C O M PA N Y R E S E A R C H 4
Regional case study – M A L AY S I A
Like Singapore, co-living is relatively new machine, mini kitchen with microwave oven and
in Malaysia. refrigerator, meeting room, cinema, games area
with PS4, laundry room, ironing facilities, meeting
JL Co-living space is the first of its kind in
room, and complimentary Wi-Fi.
Kuala Lumpur (Figure 4). Opened in early 2018
at USJ 21, JL Co-living offers three types of The rental rate of a room ranges from RM450
rooms: single, twin and premium, which could to RM1,000 per month, excluding room
accommodate up to 55 people. electricity bills. The tenancy is flexible from a
minimum of one week to three years. JL Co-
The co-living space is located within a three-
living also hosts events and conduct yoga
storey shopoffice. The air-conditioned common
classes, talks and presentations.
area has hot desks and beanbags, bar with coffee
Figure 4: JL Co-living’s concept. Source: JL Co-living
E D M U N D T I E & C O M PA N Y R E S E A R C H 5
Regional case study – THAILAND
In Thailand, there has not been any purpose- a contemporary co-working environment, Koh
built co-living apartments. However, spaces for Space attracts digital nomads into the beautiful
co-working and co-living are available. Taking setting of Koh Phangan. This island style co-
advantage of Thailand’s natural beauty and beach working space has a conference room, shared
setting, these concepts offer digital nomads an lounge space and an open-air shared kitchen.
alternative to traditional hotels and hostels. This shared experience caters to those who
are looking for a laidback island experience but
Koh Space, a youth hostel, has taken a step
would still like to stay connected.
towards a sharing economy (Figure 5). Offering
Figure 5: Co-living space in Koh Space. Source: Koh Space
E D M U N D T I E & C O M PA N Y R E S E A R C H 6
Regional case study – THAILAND
Hub53 is a co-working and co-living Facilities include a nap room, complimentary
community space targeted at digital nomads pantry, lounge, Skype room and lockers.
and travellers (Figure 6). Their target audiences
The co-living spaces offer a variety of room
include marketers, e-commerce managers,
types, from single to king rooms, and rental
writers, photographers, and IT professionals.
packages for both short and long stay
There are two types of memberships – day
guests. Rental includes weekly cleaning
pass or all-access pass. In addition to co-
service, access to common living areas,
working spaces, there are private offices that
shared kitchen, laundry room and a 24-hour,
are available on a first-come-first-served basis.
unrestricted access to the co-working space.
Figure 6: Co-living space in Hub53. Source: Hub53
E D M U N D T I E & C O M PA N Y R E S E A R C H 7
More communal spaces
and lifestyle experiences
are expected
in hotels.
Figure 7: Prototype co-working lounge. Source: Hotel Jen by Shangri-La
Shared spaces in hotels Hotel Jen Beijing by Shangri-La introduced
Prototype (Figure 7), a co-working space,
Hotels are differentiating themselves by replacing the executive lounge. For a fee,
offering new and unique experiences. Hoteliers guests can access the 3,500 sq ft co-working
are introducing lobbies with co-working spaces space, where there is a seating area, individual
and immersive entertainment centres to pods and power and USB ports. There are
enhance guest experience. Increasingly, hotels also 13 meeting rooms and office spaces for
are also collaborating with boutiques and local rent. The co-working space opens daily from
designers for unique retail experiences. 7:00am to 11:00pm.
AccorHotels has introduced more communal Taking the concept of co-living further, Marriott
spaces in its three new hotels in Singapore. is planning to introduce units with multiple
At Novotel Singapore on Stevens, there is guest rooms and communal areas in their
a cosy meeting area with a big touchscreen Element Hotels (Figure 8). While guests will
smart TV affixed to the tabletop catered have their own rooms in the apartment, they will
for guests at the lobby. A more open lobby share a kitchen, dining room and lounge area.
concept was designed for Mercure Hotel on
Stevens. Guests are encouraged to meet and
mingle at the large communal space at the
poolside of Sofitel Singapore City Centre.
Figure 8: The communal room concept. Source: Element Hotels by Westin, Marriott International, Inc.
E D M U N D T I E & C O M PA N Y R E S E A R C H 8
Serviced
CONCLUSION apartments and
hotel operators are
innovating their business
models to introduce new
We envisage more co-living concepts an increasing
in Singapore. With the global push number of concepts such as co-
to lower carbon footprint and the millennials working and co-
Government’s introduction of car-lite may choose to living.
living, more people will be drawn to live rent rather than
near their workplace. Co-living concepts stay with their parents
are affordable alternatives to private to experience living on their own, meet
apartments. Residents, especially those new people and potentially collaborate.
new to Singapore, will also benefit from
With average monthly rates at over
the flexibility of the short lease term and
$6,000 for studio and 1-bedroom
opportunities to meet new people.
serviced apartments, co-living
However, the market for co-living apartments are more affordable
concept in Singapore may be limited alternatives. The large communal
to the 1.6m non-residents, spaces and facilities in co-living
with limited demand from apartments will compensate for the
An increasing Singapore residents. As reduced personal space.
number of the home ownership
While occupancy for hotels in Singapore
rates of residents are
millennials may continues to be healthy at around 80.0
high (91.0 per cent
choose to rent rather in 2017), few have
per cent and with around 2,290 new
than stay with their keys expected in the next three years,
the need to rent.
competition in the hotel market will
parents to experience On the other hand,
intensify. Furthermore, majority of the
living on their own, with residents
new hotels are likely to be upscale and
getting married at
meet new people luxury boutique hotels. We believe that
an increasingly older
and potentially age (median age of
more hotels will adopt new concepts
collaborate. to stay competitive. While the high
grooms and brides
land cost will be a challenge for hotel
in their first marriage
operators to create communal spaces
increased by 2.0 per cent
that are not revenue generating, we
between 2009 and 2016 from 29.8
anticipate operators to integrate these
to 30.3 years and 27.5 to 28.3 years
unique concepts with their F&B and other
respectively), coupled with the rising
revenue generating outlets.
popularity of community and CBD living,
1,2
Department of Statistics Singapore.
E D M U N D T I E & C O M PA N Y R E S E A R C H 9
CONTACTS Edmund TIE
Chairman
ONG Choon Fah
Chief Executive Officer
+65 6393 2386 +65 6393 2318
edmund.tie@etcsea.com choonfah.ong@etcsea.com
PROFESSIONAL SERVICES
Valuation Advisory Property Tax Advisory & Hospitality Property Management
POH Kwee Eng Statutory Valuation HENG Hua Thong Philip LEOW
Executive Director NG Poh Chue Executive Director Executive Director
Regional Head of Executive Director Regional Head of +65 6417 9228
Valuation Advisory +65 6393 2515 Investment Advisory philip.leow@etcsea.com
+65 6393 2312 pohchue.ng@etcsea.com +65 6393 2398
kweeeng.poh@etcsea.com huathong.heng@etcsea.com KWOK Sai Kuai
Executive Director
Nicholas CHENG Research & Consulting TAY Hock Soon Regional Head of
Executive Director Senior Director Property Management
ONG Choon Fah
+65 6393 2317 +65 6887 0088 +65 6417 9229
Chief Executive Officer
nicholas.cheng@etcsea.com tayhs@treetops.com.sg saikuai.kwok@etcsea.com
+65 6393 2318
choonfah.ong@etcsea.com Paul WONG
Senior Director
+65 6417 9225
paul.wong@etcsea.com
AGENCY SERVICES REGIONAL OFFICES
Investment Advisory Auction & Sales Business Space & Retail Malaysia
Edmund TIE Nicholas CHENG CHUA Wei Lin Eddy WONG
Chairman Executive Director Executive Director Managing Director
+65 6393 2386 +65 6393 2317 Regional Head of +603 2024 6380
edmund.tie@etcsea.com nicholas.cheng@etcsea.com Business Space eddy.wong@ntl.my
+65 6393 2326
HENG Hua Thong Joy TAN weilin.chua@etcsea.com
Executive Director Senior Director
Regional Head of +65 6393 2505
Investment Advisory joy.tan@etcsea.com China Desk Thailand
+65 6393 2398
huathong.heng@etcsea.com HENG Hua Thong Punnee SRITANYALUCKSANA
Residential Executive Director Chief Operating Officer
YAM Kah Heng Regional Head of +66 2257 0499 ext 122
Senior Advisor Margaret THEAN Investment Advisory punnee.s@etcthailand.co.th
+65 6393 2368 Executive Director +65 6393 2398
kahheng.yam@etcsea.com Regional Head of Residential huathong.heng@etcsea.com
+65 6393 2383
SWEE Shou Fern margaret.thean@etcsea.com YAM Kah Heng
Senior Director Senior Advisor
+65 6393 2523 Karen ONG +65 6393 2368
shoufern.swee@etcsea.com Senior Director kahheng.yam@etcsea.com
+65 6393 2366
TAN Chun Ming karen.ong@etcsea.com
Senior Director
+65 6393 2360
chunming.tan@etcsea.com
Authors: ONG Choon Fah Constance LEUNG
Chief Executive Officer Director, Consulting (Singapore)
+65 6393 2318 +65 6393 2340
choonfah.ong@etcsea.com constance.leung@etcsea.com
Saleha YUSOFF David GEORGE
Regional Head of Business Space/Valuation/
Research & Consulting Research & Consulting
Director (Malaysia) Director (Thailand)
+603 2024 6302 +66 2257 0499 ext 134
saleha.yusoff@ntl.my david.g@etcthailand.co.th
Disclaimer: The information contained in this document and all accompanying presentations (the “Materials”) are approximates only, is subject to change without
prior notice, and is provided solely for general information purposes only. While all reasonable skill and care has been taken in the production of the Materials,
Edmund Tie & Company (the “Company”) make no representations or warranties, express or implied, regarding the completeness, accuracy, correctness,
reliability, suitability, or availability of the Materials, and the Company is under no obligation to subsequently correct it. You should not rely on the Materials
as a basis for making any legal, business, or any other decisions. Where you rely on the Materials, you do so at your own risk and shall hold the Company,
its employees, subsidiaries, related corporations, associates, and affiliates harmless to you to and any third parties to the fullest extent permitted by law for any
losses, damages, or harm arising directly or indirectly from your reliance on the Materials, including any liability arising out of or in connection with any fault or
negligence. Any disclosure, use, copying, dissemination, or circulation of the Materials is strictly prohibited, unless you have obtained prior consent from the
Company, and have credited the Company for the Materials. © Edmund Tie & Company 2018
Edmund Tie & Company (SEA) Pte Ltd
5 Shenton Way, #13-05 UIC Building, Singapore 068808 • Phone: +65 6293 3228 • Fax: +65 6298 9328 • Email: mail.sg@etcsea.comYou can also read
