In Hong Kong recently, the sharing economy has moved from the workplace to living space, with only around 10 buildings in the city but signs pointing to its potential as the next big business investment.
CBRE’s Global Living Report showed Hong Kpng remains the world’s most expensive residential city, with an average property price of more than US$1.2 million. Co-living is gaining more traction with young local and foreign professionals, millennials and those wanting to leave home and find new communities, but the supply of private residential units is limited.
Operators such as Weave Co-Living, Oootopia, The Nate, Campfire and Hmlet who offer high-quality, affordable accommodation with good communal areas in prime locations are recording more than 90% occupancy rates and yields of 4-5%, encouraging growing interest from investors looking to diversify their portfolios. At least four new co-living operators are set to launch new projects in Hong Kong by the end of the year. Meanwhile, weakened demand for hotel rooms offers an opportunity for investors and landlords to consider converting some of their under-performing and ageing boutique hotels into co-living spaces.