Living, Differently

UKO, Alexandria The Future of Co-Living in Australia 17 Living, Differently 16 LOCATION & LIFESTYLE While the matrix identifies key markets with favourable conditions for Co-Living, individual sites require a more granular assessment. This should consider existing and pipeline Co-Living, Build to Rent and PBSA supply, together with the quality, availability and pricing of competing rental options in the surrounding area. Transport connections and proximity to employment hubs, universities and amenities are also important. The matrix does not capture lifestyle preferences, which are emerging as an additional influence on Co-Living demand. Some shorter- term tenants may favour beachside or ‘trendy’ neighbourhoods, even where this means a longer commute. This is reflected in pipeline schemes in working-holiday-maker (WHM) hotspots such as Coogee and Bondi, alongside the emergence of more premium Co-Living offers with a stronger focus on wellness. Apt. Residential’s Meadowbank scheme, for example, will feature an on-site gym, ice bath and infrared sauna. A scheme’s micro-location will shape occupancy and leasing patterns. In Sydney’s Eastern Suburbs, assets attracting more WHMs and transient renters tend to experience greater seasonality, with higher vacancy and softer rents during winter. By contrast, a CBD-fringe asset near a university attracts more students, with peak occupancy aligning with the start of the academic year. An asset in southern Sydney has a more domestic renter profile, supporting steadier year-round occupancy but at a lower rent. Site selection and product design must therefore reflect the local demand profile and its trade-offs. DESIGN MATTERS This relationship between location, resident profile and product design is critical. As AJC Architects Director Brian Mariotti explains: “In inner-city locations, where one-bedroom apartments are scarce and cafés and services are plentiful, residents may accept smaller rooms because the surrounding neighbourhood becomes an extension of their living space. In middle-ring or suburban locations, where there is greater competition from one-bedroom apartments and fewer external amenities, larger rooms and more in-building facilities may be required. I often recommend a mix of room sizes and price points, from single-occupancy rooms to larger rooms for couples and higher-end units.” Ultimately, successful schemes will be those that tailor their room mix, amenity and pricing to the needs of the local market rather than applying a one-size-fits-all model.