Living, Differently

Living, Differently The Future of Co-Living in Australia 20 21 Australia’s Co-Living sector is still early in its institutional development, but offshore capital has moved well beyond curiosity. Capital from North America, Singapore and Japan is being drawn by structural rental undersupply, strong population growth, a widening affordability gap and yields that remain competitive relative to their cost of capital. Over the next 12 to 24 months, we expect capital to enter the sector initially through development partnerships and fund-through structures, before a growing pool of stabilised assets establishes clearer pricing benchmarks and accelerates transaction activity.” Emily Fell Senior Director, Capital Markets – Living Sectors, Savills Asia Pacific Co-Living is attracting one of the broadest pools of capital across Australia’s living sectors, with international groups increasingly using it as an entry point to the market and institutional investors looking to build scalable operating platforms. While investable stock remains the immediate constraint, purpose-built schemes moving through to stabilisation will deepen market evidence and support liquidity. Against a more cautious backdrop for the broader commercial property market, Co-Living continues to gain momentum because its structural demand drivers and constrained supply make the investment case increasingly difficult to ignore. Adrian Bokolis Director, Capital Markets - Global Cross Border Investment Savills Australia Investment & Capital Outlook Co-Living is moving beyond small private deals. The table below captures a selection of eight transactions and site sales since June 2024, including operational assets, development sites and joint ventures. Activity remains concentrated in Sydney and surrounding NSW markets, but the buyer pool now spans specialist operators, private investors and larger domestic and offshore capital. Income-producing assets have traded at yields of 4.50% to 5.70%, offering a premium to Build to Rent and pricing broadly in line with PBSA. As today’s development pipeline completes, and new development becomes increasingly challenged, competition for stabilised assets should intensify, driving liquidity and deal flow. SELECTED CO-LIVING TRANSACTIONS (INCLUDING DEVELOPMENT SITE SALES) - AUSTRALIA SALE DATE DEAL TYPE LOCAL GOVERNMENT AREA PURCHASER VENDOR UNITS DEAL PRICE PRICE PER UNIT YIELD / CAP RATE Jun-24 Site acquisition City of Sydney Apt. Residential Mirvac 155 $55.0m $355,000 N/A Apr-25 Investment City of Sydney Sydney Roosters Rugby League Football Club Confidential 26 $9.8m $375,000 4.74% Aug-25 Investment Lane Cove Mindarie Pty Ltd (Private Investor) Daoud Investments Pty Ltd 27 $13.7m $507,500 4.53% Sep-25 Development Site City of Sydney Scape (The Living Company) EG Funds 200 $49.5m $247,500 N/A Sep-25 Joint Venture Redevelop- ment – Capital Raise City of Sydney Investa / JR West RE & Development / Sotetsu RE (JV) The Salva- tion Army 251 $230.0m $916,500 Confidential Mar-26 Development Site Randwick Cedar Pacific Domestic Private 271 $36.5m $134,500 N/A May-26 Investment Sutherland Shire Confidential Domestic Private 35 $12.1m $345,500 5.70% Sep-26 Development Site City of Sydney Weave Denwol 84 $16.6m $197,500 N/A Source: Savills using MSCI Real Capital Analytics Please note: Any information, advice and prices in this document are given purely as guidance unless otherwise explicitly stated. Our views on price are not intended as a formal valuation and should not be relied upon by any person as such. Our views on price are given in the course of our estate agency role. Neither Savills nor the author accept any liability or responsibility whatsoever to any person who may seek to rely upon any information, advice or prices contained in this document, whether in whole or in relation to a part or parts only. Reliance placed on any advice, price or information in this document will be at the recipient’s sole risk. Savills does not accept any responsibility or liability whatsoever for the present or future accuracy of any information, advice or prices given in this document.