As co-living comes of age, a rare approved development site hits Sydney’s inner west market

Co-living is fast becoming one of the most sought-after corners of the living sector, and approved sites of any real scale rarely reach the market. The Crystal, a seven-storey scheme in Petersham with consent for 76 co-living studios, is one that just has, brought to market by Knight Frank's Tim Holtsbaum, Anthony Pirrottina and Demi Carigliano on behalf of the vendor, Develotek.

Knight Frank's head of alternatives in Australia, Tim Holtsbaum, describes co-living as "one of the most sought-after" parts of the living sector, valued by investors for its efficiency and strong returns per square metre. The next few years, he says, will see the first large-scale assets arrive and institutional capital move in behind them, with the sector following the path build-to-rent has already taken.

The Crystal sits on a 920 square metre corner site at 452-460 Parramatta Road, with triple frontage to Parramatta Road, Crystal Street and Queen Street, a short walk from the station and the Norton Street dining strip, and opposite the Clarence Hotel.

Above a ground-floor co-working space and a food and beverage tenancy, the studios run across five residential levels, each with its own private balcony, an uncommon touch in co-living that gives residents outdoor space of their own on top of the building's shared amenity. That amenity runs to a skylit communal living level, open-air breakout spaces and a landscaped rooftop with views to the city. Period shopfronts are restored at street level.

Demand is running hot on both sides of the asset. Renters, especially younger professionals, are drawn to the flexibility, community and convenience co-living offers in well-connected pockets of the city, while a rental market that stays exceptionally tight across the Inner West has investors hunting quality, well-located product.

For Knight Frank’s Anthony Pirrottina, that is what makes the offering unusual. "Sites like this, approved and at scale, are rarely, if ever, available," he says. “Most co-living opportunities are either small or still working through planning.
Fellow agent Demi Carigliano expects the campaign to draw "operators and institutional capital alike," with the strength of the Inner West rental catchment adding to the appeal.

“The site is in a prime inner-west location, with exceptional access and amenity,” he says.

The Crystal is for sale by Expressions of Interest closing at 4pm on Tuesday, July 28.