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The co-living revolution has arrived

Co-working spaces have reinvented the office, now Australia is getting its first taste of "co-living".

Co-working spaces have reinvented the office, now Australia is getting its first taste of "co-living". Photo: UKO

Co-working reinvented the office for a modern, mobile world and Australia is about to meet its ambitious little sister: Co-living.

Billed as “the future of city living”, Australia’s first co-living space – UKO – throws open its doors in inner-city Sydney this week.

As the pioneer of co-living Down Under, UKO promises to create a “network” of “communities” for “urban renters”, beginning with 33 designer studio apartments with access to shared gardens and spaces, plus social and networking activities, in inner-city Stanmore.

The co-living venture is pitched squarely at moneyed, on-the-move millennials, offering flexible short- to medium-term leases, modern conveniences, and (of course) fast internet, at upwards of $500 a week.

Residents also have access to +U Collective, an existing co-working office space in the Sydney CBD.

So what exactly is this trend?

Co-living is “not just a share house, but is built around a sense of community, efficiency and getting ahead,” University of Sydney Business School researcher Tim Mahlberg said.

While the concept is new to Australia, companies like US co-working behemoth WeWork’s spinoff WeLive and “global community” Roam are established players overseas.

“It’s targeting the upwardly mobile millennial, a so-called digital nomad who can work from anywhere,” Mr Mahlberg said.

Australia’s first co-living venture seeks to “blend the concepts of live, work, learn and play”. Photo: UKO

According to Mr Mahlberg, co-living is already blurring the lines between work and life around the world.

“It appeals to people that want somewhere to live but also want to be productive in their life, have somewhere they can go to get ahead and build their business and network connections,” he said.

However, it’s likely to remain a “luxury” reserved for a privileged few.

“There’s a tension between the local culture and that community. Work is very different for locals compared to co-livers,” Mr Mahlberg said.
“It costs much more to live there because they’re furnished higher end, employ community hosts, on top of cleaning and other costs.”

Sceptics say the success of co-working is no guarantee co-living will prove similarly popular.

The Commons is one of the most successful pioneers of co-working in Australia with multiple spaces in Melbourne, an upcoming Sydney launch, and many more in the pipeline.

Despite its achievements in the co-working sphere, chief executive Cliff Ho is adamant The Commons will never move into co-living.

“Your home is your sanctuary. I personally don’t think many people will like the model,” Mr Ho said.

“[Co-living] works for students, but the problem is that the price isn’t that cheap and Airbnb, and now hotels, are becoming really quite competitive.”

‘A more sophisticated hostel’

Sydney-based startup Kin is looking to launch its first co-living space within the next 18 months.

Co-founder Domenic Nesci is unabashed about Kin’s desire to cater to luxury-loving millennials, those aged between 25-35 who are “having a crack” and “are happy to pay more for a better style of living”.

“It’s the millennial market, but the mature end. They’re a bit older, have a bit more money and want to tap into a sense of community, but at the same time have the freedom to escape to their own private space,” he said.

“Once you finish uni or school there’s no opportunity for you to meet new people. Having that co-living environment is almost reminiscent of a more sophisticated hostel.”

Co-living versus the Australian dream

The flexibility, freedom, and lack of commitment offered by co-living is in some ways antithetical to the traditional Australian dream of home ownership.

The high rate of home ownership in Australian cities (62.3 per cent in Sydney and 66.4 per cent in Melbourne) when compared to other global metropolises such as New York (32 per cent) and London (48.2 per cent), may act as a barrier to co-living’s success according to a report by real estate investment firm JLL.

However, high home prices and stagnating wages mean that home ownership rates are falling, and for growing numbers of young people home ownership is increasingly out of reach.

“But it still seems that the forces driving co-living in other parts of the world are far less pressing in Australian cities, particularly outside of Sydney,” JLL senior research analyst Ahmed Almihdar said.

“Until these dynamics change, the opportunity for co-living will likely concentrate on a niche market consisting of students, temporary and newly arrived workers.”

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