Knight Frank’s Investment Sales team has revealed that one of its most recent sales was 142 Carillon Avenue in Newtown, a block with 37 studio co-living apartments that sold off-market for $21.5m.
The property is 650 metres from the University of Sydney and 290 metres from the Royal Alfred Hospital.
This was a landmark transaction in the Australian co-living and purpose-built student accommodation (PBSA) market, with the deal setting a new benchmark for the living sectors asset class nationally, achieving $581,000 per bedroom – making it what is believed to be one of the largest co-living sales on a per-bedroom basis in Australia.
It comes as strong buyer demand for residential investments in Sydney has resulted in $155m in sales of apartment blocks and groups of townhouses by two agents in Knight Frank’s Investment Sales team over 2025.
Another of the team’s major sales was at 108 Illawarra Road in Marrickville, which is minutes from the Marrickville Train Station, which saw 12 townhouses sell in one line for $14m.
At 171 Rowntree Street in Birchgrove, one of Sydney’s most prestigious and picturesque harbourside suburbs, 20 studio apartments were sold in one line for $6.7m.
Agents James Masselos and Adam Droubi negotiated 19 sales of this asset type last year for a total of $155m.
“We experienced strong buyer demand throughout the year for residential investments, with 4,200 active purchaser enquiries, and these assets made up 75% of total sales for us in 2025.
“Apartment blocks and broader residential investments remain a robust asset class, underpinned by strong rental growth, record low vacancy levels and scarcity of stock.
“We expect the momentum to continue in 2026 with more than $25m in opportunities coming to the market soon, and buyer enquiry remaining high.”
James Masselos, Agent, Knight Frank
Sydney’s unit block and residential investment market was attracting strong buyer demand due to its solid fundamentals.
“Multiple Sydney unit block offerings to the market last year resulted in very competitive sales campaigns, with high enquiry levels and offers. This reflects investor confidence in income and future value.
“Supply constraints and ongoing population growth underpin market strength. New approvals and completions lag demand, keeping stock tight and boosting both rents and prices.
“Rental demand remains tight. Vacancy rates across Sydney sit well below typical ‘healthy’ levels, keeping upward pressure on rents. Many middle and outer ring areas have a vacancy around 1.5% or lower.”
Adam Droubi, Agent, Knight Frank
