Australia’s coliving model as a response to urban densification and expensive land

Global data shows that coliving is now one of the reliable real estate investments. It is no longer a fringe segment for digital nomads and students, but a sophisticated typology designed for maximum efficiency to reflect current population and social trends. As a result, coliving is an established alternative to conventional residential construction in various parts of the world.

Australia is becoming a global player in large-scale coliving projects, according to fresh analysis by property consultancy Knight Frank. This is because it shows how the sector can scale effectively to meet current demand. The local market is already moving away from pilot projects of an average 37 units to a model where currently approved developments offer up to 130 coliving units. The sum of units currently in operation with those in the pipeline then already exceeds 10,000 across Australia.

New South Wales has therefore come up with a package of benefits that make the coliving model the ideal solution in such situations. These include reduced parking requirements and the ability to densify the development, allowing developers to build more floor space than a conventional apartment building.

The result is projects that offer a large number of fully equipped units in lucrative city centre locations. Big players like UKO and Habyt are getting into the game and proving that people are willing to trade extra square metres of apartments for a premium address and services.

The bottom line is that the Australian scenario shows that coliving can be part of an effective land-use planning and development strategy to address the structural problems of the world’s high-cost cities.