Australia has a housing shortage and 9 million spare bedrooms, many of them in the homes of empty-nesters. Here are 10 downsizer destinations to consider.
Encouraging empty-nesters to downsize is regularly touted as part of the solution to the lack of housing for young families close to jobs and schools.
About 80 per cent of owner-occupied properties have spare bedrooms, equating to more than 9 million spare bedrooms nationally, according to the most recent census, conducted in 2021.
Shelly Beach at Caloundra on the Sunshine Coast.
In NSW, more than 1.4 million people occupy a three- or four-bedroom home on their own, or as couples without children. And nearly three-quarters of them are aged over 55 years.
Which is why NSW opposition leader Mark Speakman has flagged a stamp duty exemption for downsizers should his party win the next state election.
“We would have looked to introduce the stamp duty exemption with appropriate thresholds for downsizing older buyers,” Speakman said in his budget reply speech on Thursday.
“This would encourage seniors to downsize to a smaller property and help them find more suitable accommodation, reducing affordability pressures by making more suitable homes available to meet the needs of younger families.”
With the help of property investment consultancy SQM Research, AFR Weekend searched for locations that could appeal to downsizers based on factors such as housing availability and affordability, and proximity to facilities such as hospitals and recreational activities.
That analysis, combined with interviews with local real estate agents, informed the following list of 10 downsizer locations worth considering.
A 30-minute train trip from the Sydney CBD, Dulwich Hill is also close to major hospitals and a 15-minute drive from the Royal Prince Alfred Hospital in Camperdown. In July 2023, the average price of a three-bedroom house in Dulwich Hill was just over $2 million, with the average price of a two-bedroom unit around $700,000. Average days on market for properties were also less than 30 days, indicating properties are snapped up quickly. The inner-city suburb has a thriving restaurant and cafe scene and is a good location for someone downsizing from a larger home further out in the suburbs.
If you are looking for somewhere more rural, with a bit more bang for your buck, Mulbring in the Hunter Region, which is close to the vineyards, may be worth a look. Here, three-bedroom houses had an average price of $1.6 million in July 2023. “It’s a pretty handy little spot here,” says Heath Baird, principal of Baird Real Estate Cessnock. Baird has been selling property in the area for nearly three decades and has watched the area almost triple in size during that time. He says Mulbring is close to the M1 which means easy access to Newcastle and its beaches. The John Hunter Hospital in Newcastle is also just half-an-hour’s drive away.
Shelly Beach is a beachside suburb of Caloundra on the Sunshine Coast. It is close to the picturesque Glasshouse Mountains and a popular holiday destination with plenty of amenities, including at least three golf clubs within 15 minutes’ drive. Three-bedroom houses sold for an average price of $1.46 million in July 2023, with properties on market for an average 30 days. Caloundra is also set to receive a boost of funds for a state-of-the-art district library and community hub from the Sunshine Coast Council. The council hopes the investment will help establish Caloundra as a centre with a cultural and community heart.
A growing Melbourne suburb 15 minutes from the CBD, three-bedroom houses in Clifton Hill sold for the average price of $1.4 million in July 2023, while the average price of two-bedroom units was $630,000. The area has been gentrified and there are plenty of restaurants and cafes. Royal Melbourne Hospital is just 10 minutes away, and it is also close to Brunswick and Carlton North and the M3, providing an easy route out of Melbourne for weekend getaways.
A small suburb just out of Beechworth in Victoria, three-bedroom houses here sell for an average of $1.3 million. Tony Stockdale is a real estate agent with First National Real Estate Bonnici and Associates in Beechworth and says there has always been a tendency for downsizers to move to the area, which has grown in the years since COVID-19. “We have people coming from Sydney, Melbourne and Canberra,” Stockdale says. The town only has one small supermarket, but it’s a half-an-hour drive from Albury-Wodonga and a three-hour drive from Melbourne.
Three-bedroom houses in the Gold Coast beachside suburb of Elanora sold for an average price of $1.2 million in July 2023, while two-bedroom apartments could be bought for an average of $525,000. Elanora is close to Surfers Paradise and the beaches of the Gold Coast, including Burleigh Nobby and Mermaid beaches. The suburb is green and leafy, with plenty of golf courses. The Gold Coast University Hospital is close, and you can be in Brisbane via train in an hour and a half.
Situated between Melbourne and the swanky Mornington Peninsula, Chelsea has attractive beaches and its proximity to the Victorian capital in its favour. It has a scenic coastline and offers views of the peninsula. Three-bedroom houses sold for an average of $1 million in July 2023, while two-bedroom apartments sold for $555,000. Chelsea had 44 properties with two or more bedrooms under $3 million listed on Domain.com.au on Friday. It is about 45 minutes’ drive from Melbourne and has a train station on the Frankston line out of the city.
Sorell Creek is a small rural area 30 minutes from Hobart where the average price of a three-bedroom house was $595,000 in July 2023. “Many downsizers are looking for areas which are a little bit more affordable,” SQM Research chief executive Louis Christopher says. Situated in the Derwent Valley and close to the Derwent River, downsizers can enjoy a rural lifestyle with a few acres in Sorell Creek, while still being close enough to Hobart. Goodwood is more suburban and just 10 minutes’ drive from the city centre but still has large blocks and homes with views of the river. The average price of a three-bedroom house in Goodwood was $547,000 in July 2023.
Founder of Fox Real Estate in Adelaide, Andrew Fox, says he is seeing people downsize to smaller apartments close to the CBD. “Adelaide, North Adelaide and surrounding inner suburbs are the areas we see most of our downsizing clients being attracted to,” he says. Fox says downsizers are looking for views of the city or water, good security, energy efficiency, pools and proximity to transport. Heritage mansions, villas, and workers’ cottages sit side-by-side in the streets of North Adelaide. Cricket and AFL fans will be happy to find the Adelaide Oval nearby.
Apartments in inner-city Perth are popular with downsizers, according to the director of Real Estate 88 in Perth, Peter Wright. “We are finding there is a bit of a trend of retirees, or even empty-nesters, coming into Perth,” he says. Many people are attracted to the newer apartments that they can “lock and leave” when they go travelling, but from which they can still enjoy views of Langley Park and the water, Wright says. It is still possible to buy a new three-bedroom apartment in the Perth CBD for under $1 million and older apartments, without the same level of amenities, can be a lot cheaper, he says.
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