Living, Differently

The Future of Co-Living in Australia 13 Living, Differently 12 Source: Savills Research Source: Savills Research SCALING WITHOUT LOSING COMMUNITY As the sector expands geographically, individual schemes are also increasing in scale. 73% of completed schemes contain fewer than 50 units, with an average of 48, while 63% of projects under construction exceed this threshold and average 94 units. This shift reflects both stronger demand and the need for operating efficiency. UKO’s Managing Director Rhys Williams estimates that at least 50 units are needed to support effective on-site management, while 200 to 250 units represent the upper limit for maintaining a strong sense of community. By comparison, Build to Rent and PBSA schemes can average between 250 and 500 units and are generally less constrained by the effect of scale on the resident offer. Their larger format is well suited to traditional institutional capital seeking to deploy meaningful equity into a single asset or portfolio. Co-Living must therefore strike a careful balance: achieving sufficient scale to attract institutional investment and operate efficiently, without diluting its defining point of difference - community. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Total Co-Living Units DA Submitted DA Approved Under Construction Operational All other locations Sydney Sydney dominates the Co-Living pipeline 0% 20% 40% 60% 80% 100% Co-Living development size as a % of all developments, by current status Less than 50 units 50-100 units 100+ units Average number of units (RHS) 0 20 40 60 80 100 120 Average number of units The next wave of Co-Living developments will be larger in scale 7% 73% 25% 38% 23% 28% 49% 47% 18% 35% For now, growth remains heavily concentrated in Sydney. The city accounts for 79% of operational units and 82% of pipeline supply estimated to complete by 2030. NSW’s early adoption of supportive planning policy has provided developers and investors with greater certainty, while Sydney’s constrained land market, high housing costs and large young migrant and student populations strengthen the case for Co-Living. Other markets are beginning to emerge, although activity remains limited to a small number of pilot schemes rather than delivery at scale. Brisbane has approximately 640 units across three schemes that are either under construction or have full planning approval, with a further two schemes submitted for planning. Perth is also gaining traction, with a handful of expected Co-Living schemes targeting the city’s large fly-in, fly-out (FIFO) workforce and its demand for flexible accommodation. UKO, Alexandria UKO, Alexandria 20% 37%