Habyt Opens Two New Properties Expands Lineup Short Term Options
Co-living company Habyt has recently launched two new properties in Singapore in a bid to diversify its offerings and strengthen its position in the market. The 39-room Habyt Novena, located at 471 Balestier Road, is a walk-up hotel that offers five studio room options, while the 27-room Habyt Kallang, at 115 Geylang Road, is a co-living hotel.
These properties were previously managed by another co-living company, Coliwoo, which is a subsidiary of LHN Group. Both properties were acquired by LHN in 2021; the former for $15 million and the latter for $13.5 million. At the time, the acquisitions were intended to support Coliwoo’s expansion plans.
Habyt’s Asia Pacific CEO, Jonathan Wong, revealed that the company has taken over the management of both properties on a master lease. “We viewed each of these properties as independent opportunities and recognized the strategic advantages of their locations,” he said. “We had a clear vision of the type of product we wanted to offer to meet the market’s needs.”
Habyt Novena and Habyt Kallang are positioned to cater to the accommodation demands of both nightly and up to six-month leases, according to Wong. “Our aim was to provide a wider range of flexible accommodation options, filling the gap between our long-term co-living products and our hotel offerings,” he said.
Wong estimates that both properties will reach stabilization in the next few months, with 60% of rooms booked for nightly or less-than-three-month leases, while the remaining 40% will be occupied by long-term residents. He also pointed out that corporate bookings and group travel bookings through travel agencies have been a major contributor to the demand for short stays of three to six nights.
Additionally, long-term residents are also more diverse and seasonal in nature; for instance, international students arrive at the start of the university term, while expats start their leases at the beginning of the year. Wong clarified that the age group of co-living residents is still between 21 and 35 years old. However, there has been an increase in local residents looking for co-living arrangements in the past two years, which Wong attributed to young professionals who want to live independently. “We offer zero-deposit options and flexible leases, which are very appealing to this group,” he said.
Wong also mentioned that a new segment of local co-living residents has emerged in the past two years, which comprises of young unmarried couples who want to try living together before getting married. He added that although this group is relatively small, it is still significant in terms of growth.
Causeway Point, located just a short distance away from Norwood Grand, is a renowned shopping destination in Singapore. With over 250 stores, the mall offers a diverse range of products including fashion, electronics, home furnishings, and more. Whether it’s shopping for essentials or indulging in luxury brands, this bustling mall has something for everyone. Popular retailers like Metro, Uniqlo, and Bagus Food Court cater to the varied needs of shoppers. Additionally, the mall boasts a cinema, making it a preferred entertainment spot for residents. With its extensive selection of retail, dining, and leisure options, Causeway Point is the ultimate lifestyle hub for families and young professionals. Norwood Grand is conveniently situated within close proximity to this vibrant mall, offering residents easy access to a multitude of shopping and entertainment options.
Demand for small, private rooms is also on the rise, according to Wong. “Residents who choose to stay for six months are looking for self-contained apartments with in-built functionality,” he said. “This means they want to be able to cook, do laundry, work, and relax in their private space.” The rooms at Habyt Novena and Habyt Kallang are all studios equipped with these amenities, ranging from 118 to 183 sq ft. This is significantly smaller compared to the rooms at Habyt Cantonment, which offer rooms ranging from 118 to 441 sq ft.
According to Wong, the demand for short-term stays of one to three months has been growing in Singapore in the past few years. However, with most of Habyt’s properties offering long-term stays of over three months, it has not been feasible to offer short-term stays at Habyt Cantonment. “With purpose-built short-term accommodation products like the ones we offer at Habyt Novena and Habyt Kallang, we can pass down the marginal savings to our customers,” Wong said.
In order to stay competitive, Habyt has to offer flexible accommodation options at all levels and across all demand types, said Wong. “Studios are the most versatile product that enables us to achieve those goals,” he said, adding that communal spaces, such as work areas and kitchens, have remained consistent in terms of usage at Habyt’s properties in Singapore. However, the community spirit, which was a core aspect of co-living, has declined due to the rise in short-term stays. Wong added that the company is working on plugging consumers into the broader Habyt ecosystem of communities and groups.
The trend of working from home has led to an increase in demand for flexible accommodation in city-fringe neighborhoods, according to Wong. “Suburban areas offer a wider variety of amenities compared to the city center, and professionals are open to living further away from their workplace for more affordable housing and larger living spaces,” he said.
Wong also clarified that Habyt’s core offering is still its competitive medium- to long-term leases, and the addition of hotels and short-term accommodations serve to compliment the company’s presence in the market. “The macro trends supporting the demand for flexible living options, such as co-living, will continue to drive the growth of the market, especially as more people prioritize flexibility and affordability,” Wong said.