Co-living development site sales total more than $8m over the past 2 months as buyer demand remains strong

Another co-living development site has sold in Sydney’s west with buyer appetite for the property type remaining strong.

Knight Frank has now sold more than $8m in co-living development sites, following the latest sale of 89 Balmain Road in Leichhardt for $3.18 million, with the most recent sale reflecting the highest rate per studio for a co-living site in Sydney’s Inner West.

The 544sq m property is approved for 23 self-contained studio apartments and a common room, as well as 12 car parks and five motor bike spaces in a single-level basement.

It was purchased by an offshore investor in a deal negotiated by Knight Frank agents Anthony Pirrottina, James Masselos and Adam Droubi on behalf of the vendor, Cordial Combined.

The sale follows two other recent sales, with a 430sq m site at 14 Dudley Street in Marrickville changing hands for $3.43 million after being on the market for only 10 days. Another 831.4sq m site at 266 Railway Street in Guildford was sold for more than $2 million.

Mr Pirrottina said the Expressions of Interest campaign for the property generated 84 enquiries and 3 offers, demonstrating the strong demand for the property type.

“Co-living development sites are highly sought after by developers as demand for completed product is high and returns are strong,” he said.

“This emerging property type is becoming a more popular option for renters due to affordability and in the current rental shortage climate.

“Buyers were attracted to this site due to its prime Sydney inner west location, being just six kilometres from the CBD and positioned within the heart of the thriving hub that is Leichhardt village, with plenty of surrounding amenity.

“Leichhardt is also an area undergoing significant gentrification through mixed-used, residential and government-backed development.”

Mr Masselos said the Leichhardt co-living development site already had development approval, which was another drawcard for buyers.

“All of the apartments are self-contained with a bathroom, kitchen and balconies,” he said.

“The approved development has been designed to maximise returns while minimising construction costs.

“The estimated total rental for the property is up to $811,200 per annum gross upon completion, with rents for each apartment expected to be $600 to $650 per week.”