Development-approved co-living sites are experiencing strong buyer demand, with two recent sales taking the total sold by Knight Frank in Sydney over 2024 to more than $50 million.

A 480sq m site at 52 Blaxland Road in Ryde, which has development approval for a co-living or new age boarding house development of 25 rooms plus one commercial space and eight car parks, was sold for $2,810,000 to a local developer in a deal negotiated by Knight Frank’s Adam Droubi.

The price represented a rate of $112,400 per key, with the estimated income upon completion being more than $845,000 gross.

The property currently is occupied by a building containing four one-bedroom apartments positioned in a thriving Top Ryde location, with excellent access to Sydney’s key arterial road networks via Marion Street and Parramatta Road.

Another co-living development site at 94-98 Addison Road, Marrickville was also recently sold for $4.85m to Property Enterprises (NSW) Pty Ltd in a deal negotiated by James Masselos and Adam Droubi.

The 787sq m site currently has five tenancies with $155,782 of holding income but is approved for a co-living/new age boarding house development consisting of 35 self-contained studio apartments plus 400sq m of retail space.

The Marrickville property was sold on the highest rate per key for the year at $138,000, with an estimated gross income upon completion of $1.15 million per annum.

Mr Droubi said the two recent sales were more evidence of how the co-living development sector was performing strongly.

“These sales take Knight Frank’s total sales of co-living sites in Sydney over 2024 to $50 million, making us the strongest team in this sector,” he said.

“We expect demand to continue throughout 2025, with demand for homes in Australia continuing to exceed available supply for the foreseeable future and housing affordability remaining an issue.

“We are seeing more demand from end users for co-living sites, which are suitable for a wide demographic, and this renter appetite will fuel further development.”

Mr Masselos said the co-living sites recently sold were well-located, which was key for developer buyers.

“The Top Ryde property is located just four kilometres from the Macquarie Park CBD, in an area undergoing significant gentrification through mixed-used, residential and government-backed development,” he said.

“The Marrickville property was a landmark property at the gateway to Marrickville village, just over a kilometre from Stanmore train station and less than two kilometres from the Marrickville train station.

“In addition to location, holding income is also key for developers purchasing co-living sites, as it gives them a return while they plan construction.”