As the co-living trend takes off in Europe and Asia-Pacific, capturing significant investor and developer attention, it prompts the question: Will this model thrive in Australia?
In Australia, where large homes average only 2.3 occupants and 12 million bedrooms sit empty against 116,000 homeless, co-living offers a potential solution to optimise space and enhance affordability.
Co-living combines private apartments with extensive communal facilities, designed to foster community, convenience, and connection.
Co-living spaces are designed with private bedrooms and upscale, fully furnished communal areas including kitchens, coworking spaces, gyms, and recreational facilities.
These setups are complemented by curated community-focused programs, such as networking events and social activities, which enhance the resident’s engagement and interaction.
James Alexander-Hatziplis (pictured above), co-founder and CEO of Place Studio, described co-living as “a modern European housing concept that offers a blend of private affordable apartments with expansive communal living spaces,” Property Council reported.
In a typical co-living development, each unit may range from a studio to a one-bedroom apartment in design, featuring a bedroom, premium bathroom, and a compact kitchen.
“Ultimately, this means that more apartments can be fitted into a development at a more affordable price for residents – especially for new homeowners,” Alexander-Hatziplis said. “By sharing some common amenities, costs can be reduced, making it affordable for first-time homeowners.”
The co-living sector is already well-established in the Northern Hemisphere and has been one of the most actively traded asset classes globally since 2021, JLL said.
In Australia, Sydney has seen more than 90% of the nation’s co-living activity, spurred by specific planning guidelines from the NSW government.
Major developments include PGIM Real Estate’s $750 million co-living portfolio in Sydney and Brisbane, in partnership with Tribe, and Pro-Invest’s $500m initiative to transform older hotels and offices into co-living and key worker housing.
The Australian co-living market is showing signs of strong performance with recent sales indicating growing interest, Property Council reported.
A site at 52 Blaxland Road in Ryde, approved for a co-living development of 25 rooms and commercial space, sold for $2,810,000. Another site at 94-98 Addison Road, Marrickville fetched $4.85m, both negotiated by Knight Frank’s Adam Droubi.
“We expect demand to continue throughout 2025, with demand for homes in Australia continuing to exceed available supply and housing affordability remaining an issue,” Droubi said.
