Coliving has emerged as a force in the residential sector as the sharing economy transforms how we work and live.
Although coliving has become a more established concept in America and Europe, a report from JLL found that overcrowded areas in the Asia-Pacific make people in this region more willing to share their own assets and a prime audience for coliving spaces.
Coliving provides flexible, shorter leases similar to coworking spaces, with payments going towards services and move-in requirements. It also helps eliminate isolation and loneliness that is a big issue for remote workers.
Still, coliving is still largely untested in Asia, particularly as the fear of the coronavirus outbreak grows.
JLL states that the key to coliving’s success is the ability to find the proper real estate assets. Some operators have chosen the route of converting underperforming hotels and residential buildings, but it is unlikely that investors would help fund major conversion projects during economic uncertainty.
Additionally, coliving operators will need to find a way to scale efficiently and stand out from other residential accommodations. As coworking has shown, massive expansion and increased competition could lead to consolidation and acquisitions.