Living, Differently

The Future of Co-Living in Australia 19 Living, Differently 18 Planning Frameworks NEW SOUTH WALES SETS THE PLANNING BENCHMARK FOR NATIONAL SCALE New South Wales is currently the only state which has a dedicated framework for Co-Living within planning policy. The NSW Housing SEPP (2021) formally recognises Co-Living as a distinct housing tenure, separate from traditional boarding houses or serviced apartments. This distinct classification and its formal development parameters provide a clearer pathway for investment, delivery and operation. That planning certainty, combined with Sydney’s strong demand drivers, helps explain why Sydney currently accounts for 79% of Australia’s operational Co-Living supply. NSW CO-LIVING FRAMEWORK A building or place that: • has at least 6 private rooms, some or all of which may have private kitchen and bathroom facilities; and • provides occupants with a principal place of residence for at least 3 months; and • has shared facilities, such as a communal living room, bathroom, kitchen or laundry and indoor and outdoor space for residents to relax and socialise; and • is maintained by professional management who provides management services 24 hours a day (which can be off or on site); but does not include backpackers’ accommodation, a boarding house, a group home, hotel or motel accommodation, seniors housing or a serviced apartment.” Development standards: • Private room: at least 12 sqm for single occupants, 16 sqm for two occupants and no larger than 25 sqm (exc. private kitchen or bathroom) • Fully furnished, ready to occupy private and shared spaces PLAYING CATCH-UP: OTHER STATE POLICIES STATE DEDICATED CO- LIVING USE CLASS? CURRENT PLANNING FRAMEWORK EMERGING REFORM DIRECTION NUMBER OF CO-LIVING UNITS (OPERATIONAL / PIPELINE) * NSW Dedicated framework under the Housing SEPP 2021 as outlined above with a 10% FSR bonus Already established with NSW acting as the benchmark nationally 3,750 / 7,890 VIC Co-Living generally assessed as rooming houses (A building let room by room to four or more people) under the Residential Tenancies Act 1997 None 840 / 0 QLD Comparable schemes are generally assessed as rooming accommodation defined in the Planning Regulation 2017. Recent reforms have focused on extending rooming accommodation pathways and simplifying approvals Queensland introduced a separate Build to Rent definition in 2025 with a minimum 50 dwelling threshold. Signals willingness to create new residential housing categories 0 / 640 SA In October 2025, Co-Living definition was added in a code amendment to the Planning and Design Code with minimum size standards for private and communal space None 0 / 120 WA Co-Living generally assessed as lodging houses under Health (Miscellaneous Provisions) Act 1911 Evidence that WA Planning Commission has carried out stakeholder workshops to inform policy framework for Co-Living, although nothing has been formalised 90 / 350 Source: Savills Research using various state planning guidance, correct as of September 2026. No qualifying operational or pipeline schemes were identified in the ACT, Tasmania or Northern Territory as of September 2026. *Rounded units, pipeline includes schemes with planning submitted, approved or under construction and are estimated to complete by YE 2030. As the table above outlines, the absence of a consistent planning framework beyond New South Wales currently limits institutional investment and development across other geographies. At a local level, development approval can depend on land-use zoning, density, proximity to transport and local character, while the lack of an overarching state-level definition leaves outcomes dependent on how individual councils interpret and assess each proposal. A clearer and more consistent pathway would reduce approval risk, enable schemes to be replicated across markets and unlock the confidence and capital needed for Co-Living to scale nationally.