Established accommodation operation UniStudio and development site sell
News release
12 August 2024
Booming Sydney Co-living market sees two properties snapped up
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JLL has sold two Co-living properties in Kingsford, Sydney, for a combined $20 million, adding further fuel to Sydney’s hot alternative living sector.
JLL’s Gordon McFadyen and Dylan McEvoy sold both properties. They are the latest in a string of Co-living sales by JLL totaling more than $250 million in the past two years.
The first property, at 65 Willis Street, Kingsford, known as UniStudio, was sold to a private investor for $10.4 million at a yield of 6.48%. It was the latest acquisition in the sector by the buyer.
The modern, four-storey building offers 33 self-contained, fully furnished studios, each featuring kitchen and bathroom facilities, living/study space, and select rooms with balconies or outdoor spaces. It provides a net passing income of $608,128 per annum.
The property is close to UNSW, the Prince of Wales Health Precinct, and the Kingsford Light Rail line, offering direct access to Sydney's CBD.
The second property, 87-91 Middle Street, Kingsford is a DA-approved site and was also purchased by a private investor for $9.8 million. It comprised a regular-shaped parcel of land with approval to construct a 68-room New Generation Boarding House. The purchaser plans to develop and hold the property.
JLL Joint Head of Metropolitan Sales and Investments NSW, Mr McFadyen said Co-living is increasingly popular with investors and developers looking to enter the long-term residential market.
“The appeal of Co-living developments is that they offer a greater density on-site and provide investors with a diversified cash flow from the multi-unit projects,” he said.
McFadyen said Co-living also provides market exposure to private investors and smaller funds seeking to capitalise on rising residential rentals as the demand for medium-term accommodation snowballs in an undersupplied residential market.
JLL Joint Head of Metropolitan Sales & Investments NSW, Mr McEvoy said Co-living appealed to investors as it is cheaper to operate than serviced apartments and has the flexibility to tailor service offerings.
McEvoy said the Co-living market had matured recently, with a series of significant projects announced in inner Sydney.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.