Co-Living Housing
Co-living housing is one of the fastest-growing asset classes in NSW
We've seen increasing investor interest in co-living apartments over the past few years. At Sorensen Design & Planning, we design co-living homes that work hard on paper and feel good to live in. Our team manages the entire process, from concept through to council-ready documentation.
If you're after a building designer with genuine knowledge of this emerging asset class, you're in the right place. Contact us for a free site inspection or quote today.
What is co-living housing?
Co-living housing is a relatively new category under the NSW Housing SEPP, introduced in November 2021. It's a build-to-rent form that sits between a boarding house and a standard apartment, combining private bedrooms with shared spaces and communal facilities.
Under the Housing SEPP, co-living housing must contain at least six private rooms, although most developments in NSW typically include 30 to 40. Each private bedroom is fully furnished and ready to occupy, while residents share communal facilities like kitchens, lounges, and outdoor space. A manager oversees the shared spaces and is responsible for fostering a strong sense of community among residents.
Co-living housing must provide a primary place of residence for all occupants. It can't be used for short-term tourist or visitor accommodation, which sets it apart from serviced apartments or short-stay rentals.
How co-living differs from boarding houses
Both housing types fall under the broader umbrella of communal living, but their regulatory pathways and financial structures differ. Understanding which model suits your site and your investment goals is one of the first things we work through together.
Here are the key differences:
- Co-living housing has no affordability requirement, while boarding houses must remain affordable housing in perpetuity
- Co-living housing attracts a 10% floor space ratio bonus, compared with the larger bonus available to boarding houses
- Boarding houses must be managed by a registered community housing provider, while co-living housing has more flexibility in management arrangements
Why co-living investment properties are gaining momentum in NSW
Co-living homes are typically built in well-connected areas, providing residents with convenient access to work, study, and recreation. This makes them a natural fit for young professionals and key workers who want proximity to major cities without the price tag of a traditional rental.
For co-living investors, the appeal often comes down to cash flow. Renting by the room, rather than the whole dwelling, can support higher occupancy rates and more consistent rental income across a property compared with traditional renting models. Multiple tenants on flexible leases also mean a vacancy in one room doesn't leave the entire property empty.
Co-living housing can also be a cost-effective entry point into co-living investment for those building a property portfolio focused on rental yields rather than capital growth alone. Investing in co-living is increasingly seen as a smart way to balance capital investment against ongoing cash flow, rather than chasing capital growth in isolation.
As demand for affordable, well-located housing continues to grow in Sydney and other major cities across Australia, well-designed co-living properties are well-positioned to meet that demand.
Our approach to co-living design
Designing co-living housing well means balancing two things that can pull in different directions: maximising private bedroom yield and creating shared spaces residents actually want to spend time in. At Sorensen Design, we work through this with you from the earliest concept stage.
Step #1: Assessing your site
We start by assessing your land and confirming whether co-living housing is a permissible use under the relevant local environmental plan. From there, we shape a layout that meets the Housing SEPP's built-form standards while making the most of your site, balancing private bedroom counts against communal facilities and outdoor space.
Step #2: Preparing your documentation
Our team prepares the building plans and supporting documentation needed for your development application. We coordinate with engineers and other consultants throughout the project, and factor in practical realities like parking ratios and access, so your application moves through council with as few hurdles as possible.
Step #3: Designing around your investment goals
Throughout the design process, we keep your investment goals at the centre of every decision. Whether you're aiming for high rental yields on a single site or building out a wider property portfolio, we tailor the design to support that outcome.
Beyond the numbers: designing for community and positive social impact
Co-living housing isn't just about high occupancy rates and great returns, although both matter to our investor clients. Good co-living design can also create positive social change by giving residents access to affordable, well-located housing and a genuine community, with real benefits for both residents and the future of the surrounding area.
We think about how residents will actually use a building: where friends gather, where someone works quietly, where a sense of privacy still exists alongside shared living. A development that gets this right tends to retain residents for longer, which supports both occupancy rates, future town planning, and the lifestyle co-living promises in the first place.
This focus on liveability, alongside commercial performance, is part of why investors return to us for their next co-living project. Contact us and tell us more about your ideas. We’ll help shape them into a practical, affordable co-living housing design.
Why choose us?
- We have been established since 2002 and are multi-award winning building designers and town planners
- We have just been awarded the 2022 HIA Residential Design Award Winner!
- We have just recognised as a finalist in the 2022 BDAA National Design Awards in the Multi-Residential Buildings Category, for our Burbong Street Dual Occupancy
- We have been members of the Building Designers Association of Australia (BDAA) continuously since 2004
- Our Director Adrian Sorensen is an open accredited chartered building designer with the Building Designers of Australia Association (BDAA), with over 25 years of building design experience
- We use licensed copies of archicad software, so we can produce high resolution 3D images of your project
- All of our staff are fully qualified with multiple years of building design and town planning experience
- We are a dedicated and enthusiastic company that services a wide area. However, we only take on a sufficient amount of clients to provide service of the highest levels
- We are familiar with all council requirements, lodging your development application (DA) on your behalf, as well as engaging all other sub consultants e.g. structural engineers and surveyors where required
- Our most recent award proudly is the 2022 HIA Residential Design Award Winner!
- Winner of numerous other BDAA awards for renovations, new houses, multi-residential design, dual occupancy, alterations and additions, as well as bathrooms, kitchens and interiors
- We are passionate about what we do!
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FAQs about co-living housing
