Nicholas Spiro

Co-living meets Asia’s needs but with the coronavirus outbreak, can it succeed in these economically challenging times?

Asia’s urbanising, tech-savvy population, high proportion of youth living with their parents and lack of affordable housing make it an attractive market for co-living providers

But the business model is untested in a challenging economic environment, particularly now as the region grapples with the coronavirus outbreak

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The co-living project Bibliotheque in Mong Kok, Hong Kong, was converted from two five-storey buildings. Photo: K.Y. Cheng

Nicholas Spiro

Published: 11:00am, 4 Feb 2020Updated: 11:24am, 4 Feb 2020

Among the forces transforming the global property industry, the sharing economy – in which individuals and companies buy or sell temporary access to goods and services via an online platform – has been one of the most disruptive.

In the office market, a younger workforce, the battle for talent, the rapid spread of mobile technology and the strong emphasis millennials place on flexibility and office design have turned co-working into a major driver of leasing activity and an attractive asset class for many investors.

While the shared space model has come under intense scrutiny following the near demise of co-working giant WeWork last September – years of heavy losses and the sudden collapse in the company’s valuation from US$47 billion to US$7.8 billion have forced it to drastically slow its global expansion, especially in China – its impact on the real estate industry remains significant.

In the residential market, co-living – a modern form of housing in which residents share living space and have common interests and values – has become increasingly popular, driven mainly by urbanisation, the lack of affordable housing and technological innovation.

The Mojo Nomad Aberdeen Harbour hotel in Wong Chuk Hang, Hong Kong, was turned into a co-living facility of 65 rooms and 250 beds in December 2017. Photo: Xiaomei Chen

While the co-living concept is more established in America and Europe, the potential for it to take root in Asia is greater, given that nearly two-thirds of the region’s millennials still live with their parents, compared with less than half globally, data from CBRE shows.