With affordability and lifestyle at the forefront for those downsizing, apartments are becoming a favoured preference for many, including boomers in the move to free up money for retirement.
According to a new research conducted by property developer Capital Corporation, in the next five years, a record number of Australians plan to downsize to boost their retirement funds.
A national survey conducted on adults who own a home and plan to downsize in the next five years found that over half or 56 per cent of downsizers intend to move to a smaller home to free up money for their retirement and reduce housing costs.
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Source: Lonergan/Capital Corporation
The Residences at Wahroonga Estate. Images: Supplied.
One in four (23 per cent) of those surveyed said they would scale down to a property within the same price bracket as their current home, with one in six (16 per cent) Australian downsizers expecting to spend between $1m to $2m on their downsized property.
This coincides with the current Sydney median house price of $1.6m.
The research supports a growing trend that Capital Corporation has observed in its new luxury apartment development, The Residences at Wahroonga Estate, with an influx of empty nesters purchasing two and three bedroom residences.
Capital Corporation director Jim Hunter said the majority of The Residences’ buyers are looking for a “house-like” experience on the upper north shore, trading in a large family home for a lower maintenance lifestyle, security and the freedom to travel.
Kitchen and Living in The Residences
“It’s clear that many of our buyers are empty nesters living on the upper north shore seeking to improving their quality of life by downsizing from their family home,” Mr Hunter said.
“By enhancing the quality of finishes, providing generous garden amenities, and designing the apartments to feel more like homes, people have gained the confidence to downsize without feeling like they are downgrading in any way.”
The Residences Courtyard
According to Mr Hunter, Capital Corporation’s research showed many older Australians still face significant housing costs, with 30 per cent of downsizers still paying a mortgage on their current home.
According to the Australian Bureau of Statistics, people aged 65 and over make up 17 per cent of the total Australian population – a figure that is set to grow to around 23 per cent by 2063.
The ageing population spotlights the demand for smaller and low maintenance dwellings.
Jim Hunter
The survey found 40 per cent of respondents in NSW and the ACT wanted to downsize to an apartment and 39 per cent of baby boomers nationally (aged 65 years+) hoped to relocate to a two or three bedroom apartment.
Mr Hunter said The Residences at Wahroonga Estate had been created in response to consumer demand from downsizers for luxury, oversized apartments set against the upper north shore’s tranquil bushland and local amenities.
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Wahroonga Living area The Residences
“We’ve listened to the market and aimed to provide buyers with a contemporary living experience through our new collection of open and spacious luxury garden homes with floor-to-ceiling windows offering panoramic views of the surrounding bushland,” he said.
To further assist downsizers with the transition from their old family home to a modern apartment, Capital Corporation has partnered with award-winning interior design specialist Coco Republic to curate the interior design.
The development is set to include over 8,000 sqm of landscaped space and premium finishes throughout, the ground floor garden residences have been eagerly taken up by long-time residents of the surrounding suburbs and approximately 45 per cent have been sold during the first release.
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