Singaporean co-living company Hmlet will make its Australia debut in Sydney with the launch of two co-living properties.
The company's foray into Australia comes at an opportune time with softening residential property prices, prompting developers and investors to shift focus away from the traditional build-to-sell model and toward build-to-rent.
The emerging company has found success in Singapore and Hong-Kong with 15 co-living locations up and running.
Late last year, Hmlet secured a $9 million Series A investment from Sequoia India, the Indian affiliate of US venture capital giant Sequoia Capital, to accelerate its expansion.
Hmlet has announced two housing projects to be opened in Sydney's inner-west suburbs Newtown and Marrickville, previously launched by local co-living provider Caper Living.
Hmlet will now look to leverage Caper’s local expertise and presence in order to build a network of co-living properties in Australia with the target of 1,000 members within 12 months.
“With the growing demand for more flexible, community-based options of living in cities like Sydney, we felt that Australia was the next natural move for us” Hmlet co-founder Yoan Kamalski said.
Hmlet identified the Australian market, which is the third most popular destination for international students and young professionals starting their careers, as its next venture with millennials accounting for 29 per cent of the country's population.
Hmlet recently completed its 2,400sq m six-level project in Marrickville, with rooms for 70 tenants, a garden terrace and outdoor kitchen.
The second project in Newtown on King Street will house 20 tenants and will feature a co-working space and a rooftop terrace.
"Following a recent tour across Australia's major capital cities, it is clear that build-to-rent will become an important part of the Australian property market and co-living helps to drive the momentum of the burgeoning build-to-rent sector," Kamalski said.
“Australia will become one of Hmlet's largest markets, and we see ourselves becoming the preferred operating partner for developers and investors seeking to enter the co-living and build-to-rent sector.”
Hmlet’s properties in Newtown and Marrickville are the first of a series of co-living properties to be launched in Sydney over the next few months, with plans under way to expand in Melbourne and Brisbane.