Singaporean co-living company Hmlet will make its Australian debut in Sydney with the launch of two co-living properties.
The company's foray into Australia comes at the perfect time with falling residential property prices prompting developers and investors to shift their focus towards build-to-rent.
Two co-living properties at Marrickville and Newtown will be launched in the coming weeks.
Situated on King Street, the Newtown location will house up to 20 members and include a co-working space, communal living and kitchen spaces, a rooftop terrace, and a new hospitality venue.
At a glance:
Hmlet Chief Executive and Co-Founder, Yoan Kamalski, said co-living was quickly emerging as a welcome solution to many of the problems associated with living and renting in Australia’s cities.
Pictured: Hmlet co-founders Yoan Kamalski and Zenos Schmickrath. Image supplied by Hmlet.
When assessing new markets for international expansion, Mr Kamalski said Australia stood out with its population of 7.1 million people aged 18 to 34 years old and positioning as the third most popular destination for international students.
Growing rental costs, where millennials spend at least 30 per cent of their take-home income on rent, was another factor.
"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," he said.
“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.
Pictured: Hmlet's common area. Image supplied by Hmlet.
Co-living is quickly emerging as a welcome solution to many of the problems associated with living and renting in Australia’s cities.
By offering affordability, flexibility, security and fostering a strong sense of community, Hmlet can cater to those who are moving to a new city or have left familiar surroundings.
“Changing the way people live around the world is our mission at Hmlet. 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” said Hmlet CEO and Co-Founder, Yoan Kamalski.
"We are excited to be expanding our brand and look forward to welcoming many more people to experience Hmlet’s community in Australia.”
Australia’s burgeoning build-to-rent sector
Hmlet’s expansion into Australia comes at a significant time for the local property market, which is currently experiencing a softening in residential property prices, prompting developers and investors to shift focus away from the traditional build-to-sell model and towards build-to-rent.
“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.
"This adds to our conviction as to why 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,” commented Mr Kamalski.
Founded in 2016 by Kamalski and Zenos Schmickrath, Hmlet has grown to become the largest co-living operator in Singapore, having doubled its membership in the past six months.
There are now 15 Hmlet locations spread across Singapore and Hong Kong, with the company aiming to secure more than 2,400 beds by the end of the year.
Australian co-living startup Caper Co-living has been brought in to assist with Hamlet's latest expansion, with former Chief Executive and Co-Founder Chrystan Paul named as Managing Director for Hmlet Australia.
Leveraging Caper’s local expertise and presence on the ground, Hmlet will look to build an expansive network of co-living properties in Australia with the target of reaching a portfolio of 1,000 members within the next 12 months.
“After meeting Yoan and Zenos, it became apparent that our respective visions were very much aligned, making sense to grow the business together as a group. With its strong brand
presence and fast expansion in Asia, we aim to grow Hmlet rapidly throughout the region,” said Mr Paul.
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Investors and renters ready for build-to-rent sector in Australia, report finds