Millennials in Asia are now sharing more than just work spaces and transportation, according to a recent JLL study titled "Bridging the Housing Gap." They've decided to live together in a new type of shared housing where people share similar values and lifestyles. Sale in qatar | properties for Sale - property hunter
Co-living is gaining traction in Asia, according to the study, especially in markets like Hong Kong and the greater China area, where housing affordability is a concern. Although flat-sharing is common among young professionals and students in many countries, co-living spaces vary in that they are professionally run rather than organized informally.
Most managers emphasize the service's community elements, which include yoga classes, film screenings, dinners, and free drinks, as well as networking activities with guest speakers and seminars tailored to residents' personal interests.
"The advent of the co-living model provides an affordable housing option for those shut out of the residential market: an alternative to residing in the family home, sharing a rental unit, or living in a subdivided apartment," said Denis Ma, Head of Research, JLL Hong Kong. "Moreover, the community aspects promoted by most co-living schemes have the ability to increase residents' overall well-being."
Although co-living is still a relatively new concept in Hong Kong, owners and investors have been increasingly turning their residential and hotel/guesthouse en-bloc properties into co-living schemes since 2015. Traditional residential clusters, such as Mong Kok, as well as communities near higher education institutions, such as Hung Hom, Tuen Mun, and Sha Tin, are where the spaces are often found.
The idea of co-living first appeared in mainland China in 2012, with YOU+ International Youth Community and other operators. There were about 90 operators around the country by the end of 2016. One of the largest operators on the mainland, Vanke Port Apartment, operated over 60,000 units. YOU+ had 16 properties, Mofang had about 15,000 units, ZiRoom had seven, and Coming Space had 10,000 units.
"Co-living is in high demand among mainland Chinese millennials. There have been 43 million new graduates in the last five years alone. Given the high housing prices in tier 1 and 2 cities across the country, it will take them at least three to five years to start buying their own homes. As a result, many of them would have to rent or look for other short-term housing options. As a result, co-living is a very appealing choice "JLL China's Head of Research, Joe Zhou, explained.
Some Asian operators have combined work and lifestyle under one roof, inspired by the coworking phenomenon. In India, for example, there are currently four co-living start-ups in Gurgaon and two more in Bengaluru.
Aurum Investments, a sister company of Collision8 co-working room, has invested in Hmlet, a new co-living startup in Singapore. 5Lmeet, a Beijing-based start-up, goes beyond shared housing by providing tenants with an open office, as well as other facilities including restaurants, a gym, and event space.
Investors who have made the switch to co-living
The co-living market is proving to be an appealing choice for investors and owners of existing properties, especially in the hospitality sector, thanks to barriers to homeownership and a housing shortage.
"Due to similar unit sizes and mature operating teams, smaller budget and boutique hotels are one of the first property types being transformed into co-living spaces," said Zhou. "Converting other properties to co-living, on the other hand, requires a lengthy legal and planning process, which adds to the time and expense."
Ma claims that "Durability and obsolescence are also factors to consider. Many new co-living houses are appealing to users because of their sleek fit-out and finishes. How much operators spend in upkeep and maintenance will also determine if these shared spaces will retain their appeal after many years of general wear and tear."