DBS initiates ‘buy’ call on Coliwoo Holdings amid growing Singapore co-living market

[SINGAPORE] DBS Group Research analysts Geraldine Wong and Derek Tan on Thursday (Jan 22) initiated a “buy” rating on co-living player Coliwoo Holdings, amid rising foreigner demand in Singapore’s co-living market.

As the largest co-living player in Singapore, it reportedly has around 19.5 per cent of the total market share, said the analysts.

The target price they set for the counter is S$0.88. “We price in additional operational beds growing with Coliwoo’s two-year room growth target, with a one-year operational ramp up to stabilisation,” they indicated.

In particular, Wong and Tan flagged the company’s demonstration of “resilient demand” in its listed portfolio of 2,933 rooms across 25 properties, with a high occupancy level of 96.1 per cent for FY2025.

This has been the case since parent company LHN Group expanded the Coliwoo business back in 2020.

“The company’s legacy business model in space configuration and modification allows it to scale rooms at an unprecedented rate and repurpose older buildings into co-living assets, the analysts said. “(This is) opposed to peers operating under the owner-operator model or competing in the private residential market.”

Additionally, Coliwoo will have nearly 600 keys delivered in 2026, including those for 141 Middle Road, 159 Jalan Loyang and Bukit Timah Fire Station.

The company targets the delivery of another 800 keys a year for FY2026 and FY2027, noted the DBS Group Research analysts.

Coliwoo is securing another 1,140 keys (including Singapore Land Authority tenders with results pending) – all within three months since its initial public offering in November 2025.

This will make up around 70 per cent of its two-year key strategy for 2026 to 2027, say the analysts.

Execution of beds comes slightly ahead of Wong and Tan’s expectations, and builds confidence that Coliwoo is on track to fulfil its key target of 4,000 keys by end-2026.

Its flexibility in lease terms and “plug-and-play model” also make for a fuss-free living format that resonates with young renters.

“Portfolio room rates are kept at a palatable sub-S$3,000 a month, giving the brand strong pricing appeal compared to traditional rental options,” the analysts wrote in their Thursday report.

For context, co-living fills a clear gap by serving foreign students and foreign professionals working in Singapore – a community of over 400,000 residents, which continues to grow.

“The latest housing policies place higher barriers of property ownership for foreigners, which in turn is driving demand structurally higher,” said Wong and Tan.

Risks to look out for

That said, Coliwoo’s business model is not without certain key risks, write the DBS Group Research analysts.

This includes operational risks relating to master leases and leasing to third-party operators.

Coliwoo’s properties are mostly operated through master leases with an initial lease term of between one and three years; these typically come with renewal options.

“The inability to renew these master leases or successfully re-tender for these properties may disrupt operations and affect financial results adversely,” Tan and Wong wrote on Thursday.

Another risk comes from the significant capital expenditures by the company, which may not be recoverable.

Such expenditures are the result of the renovation and refurbishment works on properties before they are leased out; substantial costs are also incurred periodically to maintain and repair the properties.

“If Coliwoo is unable to manage their capital expenditure or costs involved in renovating, refurbishing and maintaining of the properties, its profitability may be adversely affected,” the analysts said.