When Singapore’s co-working giant JustCo and co-living operator Coliwoo came to market, investors were offered a compelling vision of the future.
The old model of long-term ownership and rigid leases was giving way to flexibility. Young professionals no longer wanted to commit to a two-year apartment lease. Companies no longer wanted to sign office leases spanning a decade. Instead, both groups wanted convenience, flexibility and community.
In many ways, JustCo and Coliwoo were selling different versions of the same idea: space as a service.
JustCo transformed offices into subscriptions. Coliwoo transformed accommodation into a managed living experience. One targeted where people work; the other targeted where they live. Both promised to benefit from demographic shifts, changing lifestyles and the growing preference for access over ownership.
Yet the stock market’s reception has been far less enthusiastic.
JustCo has struggled significantly since its IPO, trading well below its listing price. Coliwoo has fared better operationally, reporting strong occupancy and earnings growth, but its shares have also failed to generate the kind of post-listing excitement often associated with a high-growth story.
The contrast highlights an important lesson about public markets.
Investors may agree that flexible living and flexible working are powerful long-term trends. What they are less certain about is whether these trends translate into durable shareholder returns.
The challenge lies in the business model itself.
Unlike technology companies that can scale with relatively little capital, both co-working and co-living businesses remain fundamentally tied to real estate. Growth requires acquiring, leasing, fitting out and managing physical spaces. Occupancy rates must remain high. Assets must be refreshed. Financing costs matter.
As a result, investors often view these businesses through a property lens rather than a technology lens.
This may explain why the market has rewarded Coliwoo more generously than JustCo. Co-living enjoys stronger structural demand in Singapore today. Rising rents, a large expatriate population and housing supply constraints have created favourable conditions for managed accommodation providers. Occupancy rates remain high and earnings visibility is relatively strong.
Co-working faces a more complicated environment. Hybrid work has become permanent, but its impact on office demand remains uncertain. While companies value flexibility, they are still determining how much office space they ultimately need. Investors therefore remain cautious about assigning premium valuations to co-working operators.
The experiences of JustCo and Coliwoo also reflect a broader challenge facing Singapore’s equity market.
In recent years, investors have shown increasing preference for profitable businesses with visible cash flows and reliable dividends. Growth stories alone are no longer sufficient. Companies must demonstrate not only that they are riding a powerful trend, but that they can convert that trend into sustainable profits.
That is ultimately the test facing both JustCo and Coliwoo.
Their IPO performances may differ, but their fate is linked by the same question: can the future of living and working be monetised consistently enough to justify public market valuations?
The answer will determine whether they become pioneers of a new asset class—or simply another reminder that a compelling narrative is not always enough.