This article is from the Australian Property Journal archive
A seven-storey building in Sydney’s inner west touted as the largest purpose-built co-living in Australia has hit the market with expectations of more than $40 million.
Completed in March 2024, the brand-new, fully operational 5PM Burwood at 40-46 Stanley Street, Burwood is on a 1,576 sqm plot of land and comprises 95 self-contained, fully furnished and air conditioned studio apartments.
Its five levels of residences are approved to accommodate up to 121 occupants, and it has two basement parking levels providing 48 car spaces and 19 motorbike bays.
Andy Hu and Paul Savitz from Savills have the listing together with Steam Leung and James Cowan from Colliers on behalf of a syndicate of private individuals.
The residences is popular among international students, young couples and professionals given its position in the prime of Burwood, a vibrant commercial hub with eateries, shopping, entertainment, greenery and parks.
“Co-living accommodation is in high demand, both from a tenant’s perspective especially given Sydney’s extremely tight vacancy rate and rising unaffordability, whilst offering a unique opportunity for investors to acquire a brand-new living asset with immediate cashflow at a price well below current replacement costs,” Savitz said.
Burwood has undergone a strong 32% increase in population since 2001, hitting 40,217 people in 2021. Local council predicts that number will nearly double to 73,500 by 2036.
“Investors are increasingly seeking opportunities in resilient asset classes. Co-living is one of the most sought-after sectors with over half of the global investors we surveyed recently intending to target the sector within the next two years.”
Hu said the asset offers several years of depreciation potential for the incoming purchaser “with a unique opportunity to acquire a virtually new property”.
He said a flexible management agreement is in place, providing options to explore alternative management solutions.
The property is well serviced by public transport, just one stop from Redfern Station, two stops from Central Station and a 17 minute commute to the Parramatta CBD. The Burwood North Metro Station, meanwhile, is due to open in 2032.
For university students, the offers quick access to UTS, University of Sydney, TAFE and other major educational institutions.
Expressions of interest close late 2025.
Sydney is one of the co-living sector’s fastest maturing markets, thanks to strong population growth and investors’ propensity towards income-producing real estate as a defensive strategy. JLL research shows Sydney has been the focus of more than 90% of total co-living activity in Australia.
Among the larger operators entering the sector in Australia are global investment manager PGIM Real Estate, which is currently building out a $750 million portfolio across Sydney and Brisbane in a joint venture with Accor Group-owned modular hotel chain Tribe, while hospitality investor and asset manager Pro-Invest undertook a $500 million equity raise to convert older hotels and office buildings into co-living apartments and key worker housing.
Last year, Sydney-based developer Freecity purchased an ageing apartment building in Macquarie Park for $73 million and submitted plans for 505-room co-living accommodation including cinemas, meeting and function rooms, a gym and a pool.
