Historic Victorian terrace combines boutique student accommodation with future-use flexibility
Colliers has been appointed to market Cydelia House at 101-103 Drummond Street, Carlton, a heritage asset positioned within Melbourne’s established education precinct and currently occupied by the University of Melbourne for postgraduate and mature-age student accommodation. The property is expected to attract interest in excess of $9 million.
The property is being offered for sale via Expressions of Interest, closing at 2.00pm (AEDT) on Thursday, 22 October 2026 with Alex Browne, Matt Stagg, and Ryan Milivojac of Colliers managing the campaign. Unified Property Services has been appointed transaction manager.
Forming part of the renowned Drummond Terrace, a Victorian State heritage-listed row designed by Walter Scott Law in 1890, Cydelia House comprises two adjoining freehold buildings that have undergone significant refurbishment and adaptation for contemporary accommodation use.
Occupying a 719sqm mixed-use landholding, the property currently provides 20 accommodation rooms, including 16 ensuite rooms, alongside communal kitchens, dining facilities, study areas, landscaped outdoor space and onsite parking accessed via Mission Place.
The property has been occupied by the University of Melbourne as student accommodation, providing an alternative living environment to traditional college accommodation. Located approximately 350 metres from Melbourne’s CBD and within walking distance of the University of Melbourne, RMIT University, major hospitals and Melbourne’s medical precincts in Parkville and East Melbourne/Fitzroy, the asset sits at the centre of one of Australia’s most significant education and knowledge economies.
Zoned Mixed Use, the property also offers potential to develop additional accommodation units, subject to approval, as well as scope to consider alternative living outcomes including build-to-rent and co-living.
The opportunity comes at a time when demand for purpose-built student accommodation continues to outpace supply nationally. According to the latest Urbis Student Accommodation Benchmarks report, produced in partnership with the Property Council of Australia’s Student Accommodation Council, Victoria has approximately one dedicated student accommodation bed for every six students.
Matt Stagg, National Director | Office Capital Markets & Middle Markets at Colliers, said the offering combines heritage significance with a highly relevant accommodation use.
“Cydelia House is a distinctive property that brings together architectural significance, a high-quality existing accommodation offering and an exceptional location on the doorstep of the Melbourne CBD,” Mr Stagg said.
“The property has already demonstrated its suitability as an education accommodation asset through its occupation by the University of Melbourne, while also offering future flexibility to support alternative living and accommodation uses.”
Alex Browne, Director, Melbourne Metro Sales | Investment Services at Colliers, said the property’s appeal extends beyond traditional student accommodation investors.
“The opportunity has the fundamentals to appeal to a broad range of buyer groups, including established student accommodation operators, boutique hotel groups, alternative accommodation providers, private investors and value-add buyers seeking exposure to Melbourne’s education precinct.”
“The combination of an existing accommodation use, flexible mixed-use zoning and a tightly held CBD-fringe location provides multiple pathways for future ownership, whether through continued student accommodation, boutique hospitality or alternative living outcomes.”
Cydelia House presents an opportunity to adapt Melbourne’s historic building stock for contemporary accommodation needs, while retaining the architectural character of one of Carlton’s most significant heritage offerings.
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