Knight Frank reports strong demand for co-living development sites in Sydney

Knight Frank has sold over $8 million worth of co-living development sites in Sydney over the past two months, indicating robust buyer appetite for this emerging property type.

Key points:

• A 544 sq m site at 89 Balmain Road in Leichhardt sold for $3.18 million, setting a record price per studio for a co-living site in Sydney’s Inner West.
• The Leichhardt property is approved for 23 self-contained studio apartments, a common room, and parking facilities.
• Two other recent sales include a 430 sq m site in Marrickville for $3.43 million and an 831.4 sq m site in Guildford for over $2 million.
• The Leichhardt sale generated 84 enquiries and 3 offers during the Expressions of Interest campaign.

Anthony Pirrottina from Knight Frank said co-living sites are highly sought after by developers due to strong demand for completed projects and high returns.

“This emerging property type is becoming a more popular option for renters due to affordability and in the current rental shortage climate,” Pirrottina said.

James Masselos, also from Knight Frank, noted that the Leichhardt site’s existing development approval was a key attraction for buyers.

“The approved development has been designed to maximise returns while minimising construction costs,” Masselos said.

The estimated total rental for the Leichhardt property is up to $811,200 per annum gross upon completion, with expected rents of $600 to $650 per week for each apartment.

These sales highlight the growing interest in co-living developments as an alternative housing solution in Sydney’s competitive rental market.