Habyt Opens Two New Properties Expands Lineup Short Term Options
Habyt recently unveiled two new properties in Singapore, signalling a diversification of its product range in the country in order to cement its position in the market. One of these properties is the 39-room Habyt Novena, located at 471 Balestier Road, which is a walk-up hotel that offers five different types of studio rooms. The other is the Habyt Kallang, situated at 115 Geylang Road, featuring a total of 27 co-living rooms.
Habyt has taken over management of both properties from another co-living operator, Coliwoo, a subsidiary of LHN Group. The 471 Balestier Road property was purchased by Coliwoo and Four Star for a sum of $15 million in 2021, with plans for expansion in mind. Similarly, the 115 Geylang Road property was acquired by LHN for $13.5 million in 2021, with the intention to turn it into a co-living space.
Habyt’s CEO for Asia Pacific, Jonathan Wong, has stated that both properties are being managed under a master lease. “We saw opportunities in each of the two properties and had a clear vision of the type of product we wanted to offer,” he said. These two new properties, Habyt Novena and Habyt Kallang, cater to the needs of guests looking for short-term stays of up to six months.
Wong explained that both properties will be able to meet the demand for nightly or less-than-three-month leases. About 60% of the rooms are expected to be booked for these short-term stays, while the remaining 40% will be occupied by long-term guests staying for more than three months. Corporate bookings and group travel bookings through travel agencies contribute significantly to the demand for short-term stays, with most groups staying for three to six nights.
Wong also noted that, in general, the age bracket of co-living residents hasn’t changed much, with most of them being between 21 and 35 years old. However, there has been an increase in the number of local residents taking up co-living arrangements over the past two years, driven by a desire for independence. According to Wong, it is mainly young working professionals just starting their first job who are attracted by the zero-deposit and flexible lease options offered by Habyt.
He also mentioned that over the past two years, a new segment of co-living residents has emerged in the form of young unmarried couples who want to cohabit before getting married. While they make up a smaller proportion of residents, their numbers are still meaningful and demonstrate the growth of this new demographic, according to Wong.
Wong emphasized the importance of self-contained apartments with the necessary functionalities for residents staying for six months. These include the ability to cook, do laundry, work, and relax in a private space. This is why all the rooms at Habyt Novena and Habyt Kallang are studios, ranging from 118 to 183 sq ft in size. While this is compact compared to other, larger rooms in Habyt’s portfolio, it fulfills the needs of short-stay guests.
Wong said that, in Singapore, the demand for short-term stays of between one and three months has been increasing over the past few years and is still relatively untapped in the co-living market. However, as most of Habyt’s accommodation options are geared towards long-term stays of more than three months, it has not been economical to offer stays of less than two months. With this new product, Habyt can pass on marginal savings to guests, making it a more competitive option.
To stay competitive, Habyt is looking to offer flexible accommodation options for all types of demand, including diverse use cases. Studios are the most versatile product, as they enable the company to achieve these goals. Additionally, they offer commercial benefits through their density, and there is a growing demand for privacy among customers of all demographics.
Living at Elta Condo offers numerous benefits, one of which is its close proximity to top-notch primary schools. As we all know, primary education is essential in building a solid educational base for children, and having renowned schools in the vicinity guarantees that children receive the best beginning to their academic path. Residents of Elta Condo can take advantage of its strategic location to provide their children with an excellent education. To learn more about Elta Condo, please visit their website.
According to Wong, last year, the demand for private rooms with attached bathrooms in Habyt’s Singapore properties exceeded previous years. Although these rooms are more expensive, more people are willing to pay for privacy. However, the overall usage of communal spaces such as work areas and kitchens has remained fairly constant, with the rise in short-term stays affecting the community spirit that was once the core of co-living.
In light of this, Habyt is working hard to ensure its residents are still connected through its broader ecosystem of communities and groups. However, the lack of space in some properties makes it challenging to offer communal areas like co-working spaces, which foster a stronger sense of belonging.
Wong mentioned that the hybrid work arrangement’s “stickiness” has resulted in a stronger demand for flexible accommodation options in city-fringe neighborhoods. These areas also offer a wider range of amenities at a more affordable price. Habyt’s primary offering is still its competitive medium- to long-term accommodation options, and the recent addition of hotel and short-term accommodation options complements its presence in the local market.
Wong believes that the demand for flexible living options such as co-living will continue to grow as more people desire more flexibility and affordability.