Endorsed as the next step in the housing evolution thanks to its potential to answer social challenges as well as current housing issues, co-living is expanding into Australian shores.
Property newcomer Caper Co-living will launch its first two co-living offerings delivering 56 rooms to the burgeoning sector.
The two properties, located in Newtown and Petersham, are being launched in partnership with two private investors which the company says will be among the first purpose-built co-living properties in the country.
The move follows after hotel group Veriu opened Australia’s very first co-living space in Sydney’s inner-west last month.
The startup, founded this year, by Chrystan Paul and Jonty Nel was birthed out of frustration with the state of Sydney’s rental market.
“Our focus with Caper Co-living is to serve the millennial market and put the renter first."
Caper's inner Sydney projects have a gross development value in excess of $20 million across both properties.
Paul says he expects co-living to benefit from the same momentum of build-to-rent in Australia.
The co-living business model capitalises on key driving trends identified in Australia's major cities with more than 1.2 million people renting aged 20 to 35 and this group spending around 30 per cent of pay on rent.
The co-living real estate sector, which might be considered a swankier version of a share house, is largely new to Australia. An investment owned by one entity such as a landlord, where units are not built to be sold off individually, instead leased over the long term.
Caper tenants sign up to a 12 month membership.
The Newtown property, at 601 King Street, will offer 16 furnished ensuite studios. Prices, which are all-inclusive of bills such as internet and weekly cleaning, for double studios start from $525 a week.
The Petersham property, a heritage private residence will offer 40-ensuite studios.
Prices for a single studio at the 2 Shaw Street location start from $430 per week and range up to $540 a week for loft apartments.
Other properties Caper has lined up as co-living development projects include an Ultimo site, purchased for about $20 million in August. Caper also acquired the Bald Face Stag Hotel, a 1300sq m pub in Leichhardt for around $8 million, along with One Camperdown.
“We have a solid property pipeline of co-living projects coming online over the next few years and we look forward to expanding our footprint across Australia,” Nel said.
The Newtown and Petersham buildings are scheduled to be in operation by January and March, respectively next year.