In two short years, Hong Kong-based accommodation provider Weave Living has quadrupled its market presence in Asia, breaking out of its home territory to establish more than 16 new locations in three major cities: Singapore, Tokyo and Seoul.
In the last two months, the company has opened two new locations in Singapore, comprising its flagship property, the 175-unit Weave Suites – Hillside, and the 93-unit Weave Residences – East Coast.
Weave Suites – Hillside is the company’s largest asset in terms of unit count in Singapore to date. The development was renovated from the former Citadines Mount Sophia. Last February, Weave Living and global investment manager BlackRock jointly acquired the former Citadines-branded serviced apartment for $148 million.
Weave Suites – Hillside is Weave Living’s 175-unit flagship property in Singapore. (Picture: Weave Living)
According to Weave Living founder and CEO Sachin Doshi, discussions with BlackRock on a joint asset acquisition strategy in Singapore began about a year and a half ago. It centred on investment opportunities in Singapore and Doshi’s investment goals regarding the living sector in the city-state.
“There is a lot of alignment between Weave Living and BlackRock in terms of how we view opportunities in the accommodation space, as well as Singapore’s strong appeal for investors looking to deploy capital into living sector assets here,” says Doshi.
Both companies moved quickly to secure acquisition opportunities and were in talks to acquire Citadines Mount Sophia less than three months after a formal partnership was signed.
“Singapore is a deep market, but at the same time, it is not easy to access investment opportunities,” says Doshi. “As a result, players must be very nimble but also thoughtful about which assets to acquire and what we can deliver in those assets.”
He adds that Weave Living is fundamentally a real estate investor that prioritises the acquisition of “good quality real estate in good locations” where it can offer a premium housing product.
Weave Suites – Hillside
Located at 8 Wilkie Road, Weave Suites – Hillside features 175 apartment units with six different ensuite unit types, ranging from studios to one- and two-bedroom apartments.
Apartment types consist of 231 sq ft premium suites, 401 sq ft junior suites, 378 sq ft junior luxe suites and 426 sq ft two-bedroom suites. There are also one-bedroom suites and one-bedroom luxe suites of 517 sq ft to 614 sq ft.
Premium suites and two-bedroom suites are available from six nights up to a month and are priced at $199 and $389 per night, respectively. Meanwhile, the other apartments range from $4,480 to $5,440 per month.
Rooms receive weekly housekeeping service, linen change and amenities refill, which are included in the rent. Each unit has a queen-sized bed, a washer/dryer combination and luxuries like a Dyson hairstyling set.
A Premium Suite at Weave Suites – Hillside. (Picture: Samuel Isaac Chua/The Edge Singapore)
“When the opportunity came to acquire this property, we saw real value in this asset, especially with the gentrification taking place in the area and the development of One Sophia next to us,” says Doshi, referring to upcoming residential and commercial project One Sophia by SingHaiyi Group.
A redevelopment of the former Peace Centre and Peace Mansion, One Sophia is a mixed-use project comprising 367 residential units and 127 strata-titled shops. It was designed by Singapore-based ADDP Architects in collaboration with French architectural firm studioMilou.
The difference in interior design, accommodation quality and amenities offered at Weave Suites – Hillside is vastly different compared to its previous make-up, says Doshi. “We looked at where the property was and what we believed we could create. If you compare the property now, it is completely like chalk and cheese.”
An extensive renovation was needed to bring the entire serviced apartment property to the Weave Living standard. With Weave Living, he says a new product has been created that could stand at the premium end of the accommodation market. Weave Living spent over $20 million on the full asset refurbishment and property upgrade.
The Junior Suite spans 401 sq ft at Weave Suites – Hillside. (Picture: Samuel Isaac Chua/The Edge Singapore)
The in-house design team at Weave Living identified several under-utilised spaces on the first and second floors and back-of-house basement areas that could be transformed into new amenity spaces.
The first floor features several lounge and working areas, meeting rooms and a mail room. The second floor revolves around the kitchen and private dining room, with a gym and more lounge areas available. The basement now features a yoga room, a karaoke/TV room, a games room and a small home movie theatre.
“We wanted to create spaces that are inviting and useable for our residents to spend time in,” says Doshi. He adds that tenants are no longer just looking for basic housing options but gravitate to spaces and locations that fulfil multiple needs, such as social engagement and an alternative working environment.
He characterises Weave Living as a premium player in each accommodation segment it operates in, believing that this creates a high-value customer base for its business in Singapore and across the region.
The 378 sq ft junior luxe suite features an enclosed bedroom. (Picture: Samuel Isaac Chua/The Edge Singapore)
Rising tenant expectations
Housing expectations among tenants in Singapore have rapidly changed in recent years, and this is upending the traditional perspective among investors towards investing in accommodation assets here, says Doshi.
He shares that the strength and widespread appeal of public housing options in Singapore traditionally made investing in rental accommodation less viable as an investment asset class. However, according to Doshi, accommodation preferences are changing among locals, who are more willing than before to consider different types of long-term rental options.
When uplifting any property in its portfolio, Weave Living takes a design-led approach to create a liveable experience. However, the digital-first approach has also enabled the accommodation specialist to stand out in a competitive market.
Doshi touts the in-house mobile application and its ability to serve residents in searching for a property, the moving-in process, rental payments, facility booking, and moving out. “Our website is our digital shopfront, and our customer acquisition occurs almost entirely digitally through our marketing channels. This caters to the demand from our users for absolute convenience throughout the day,” he says.
This focus on digital service also enables the company to run properties more efficiently and invest in areas that are much more relevant to customers. “We can save a lot of time, capital, and investment to avoid things that do not improve the overall customer experience”.
“The key factor for our company to succeed in this new growth market in Singapore is to create a product that resonates among locals and expatriates, which is also at a price point that they are willing to pay while offering a unique value proposition,” says Doshi.
Weave Residences – East Coast
Last month, Weave Living welcomed tenants to Weave Residences – East Coast, a 93-unit development at 5 Still Road. This is Singapore’s first Weave Residences-branded property, which is closely designed to meet the rental needs of conventional families. In comparison, Weave Suites caters to serviced apartment lodging.
It is the first property in the company’s portfolio where it does not own a stake in, but is operating under a management contract. The property was developed as the freehold, 60-unit apartment block Creston Residence and completed sometime in late 2024.
Doshi explains that the property does not fit into the company’s asset-heavy approach due to “tax reasons”. Under the new framework that took effect in April 2023, corporate entities purchasing residential property are now subject to a 65% Additional Buyer’s Stamp Duty, up from 35% before. However, Doshi says, Weave Living has “full discretion” when it comes to operations and leasing decisions on Weave Residences – East Coast, located on Still Road.
Weave Residences – East Coast caters to tenants looking for conventional rental accomodation. (Picture: Weave Living)
Given the various amenities the property had to offer — including a 20m swimming pool, a dedicated children’s play area, a gym, BBQ pits and penthouse units with private pools — the company saw it as a chance to introduce the Weave Residences product line to Singapore.
“As a company, Weave Living has grown to the point where asset owners are looking for ways to benefit from our brand reputation,” says Doshi. He adds that they will be very selective in terms of which properties they enter into such management contracts, and it is critical that the location fits their criteria and the partner understands its value proposition.
“In Singapore, we have encountered many similar opportunities being introduced to us recently, and interested parties include asset owners and landlords,” he says. However, he reiterates that asset ownership is the primary strategy of the company, but in markets where owning apartment or condominium developments is more challenging, they will selectively consider expanding through management agreements.
Regional growth and expansion
Doshi says that over the next two years, Japan, Korea and Singapore will significantly contribute to the company’s growth. “We work closely with business partners in each of these countries where the living sector markets are ripe for the Weave model”.
Last November, Weave Living and investment firm KKR & Co announced a strategic partnership to invest in and manage a multi-family residential portfolio of over 3,000 units in Japan. The joint venture was seeded with 11 newly acquired residential properties in Tokyo, totalling 439 units.
These 11 properties account for Weave Living’s market presence in Tokyo to date. The joint venture with KKR & Co. will focus on newly developed and existing properties, initially concentrating on Tokyo, with the potential to expand into Osaka.
This comes after KKR & Co finalised another joint venture last March with Weave Living to create and manage a rental housing portfolio of about 1,200 units in Seoul, South Korea. Today, Weave Living has two properties in South Korea: A 157-unit apartment called Weave Suites – Sunyu Parkside and a 98-unit Weave Place – Hoegi.
In Singapore, Doshi sees opportunities for Weave Living to capitalise on city fringe areas and neighbourhoods. “As these overlooked locations are gentrified in the future, we want to be among the beneficiaries of the overall uplift of the neighbourhood,” he says.
Proximity to the CBD is another crucial consideration when they evaluate a property, he says, adding: “Ultimately, what matters in real estate is not the property you buy, but that you’re situated on the right street”.
Looking ahead, Doshi says that Weave Living is gearing up to break into the Australian market, capitalising on the large accommodation market to achieve scale. “With both these factors as tailwinds, the runway for growth as a company in the Australian market is huge,” he says.
