04 May How Does the Trillion Dollar Downsizer Market in Australia Impact on Property Investment in the Apartment Market?
Australia’s property landscape is changing thanks to a growing trillion dollar downsizer market. Below we discuss the opportunities this provides for property investors, particularly when it comes to investing in apartments.
The downsizer market
Australia’s ageing population is driving the growth of the downsizer market. According to the data from the last census conducted by Australian Bureau of Statistics in 2021, 17.1% of the population are aged 65 years or older, and this is expected to increase to more than 20% by 2066.
In addition, growing numbers of older Australians are selling their family homes and downsizing to smaller, more manageable houses in order to simplify their lives and reduce maintenance. This is changing housing demand and producing a significant shift to what is being called ‘low maintenance living’.
Impact on the apartment market
The desire for downsized living has created a big demand for apartments, particularly those offering convenience, security and proximity to amenities.
Developers are responding by building apartments that cater to downsizers’ specific needs, such as single level living, accessible features and community facilities.
This demand is driving up values, meaning that apartments are an increasingly attractive opportunity for investors.
Investment opportunities for investors
For Australian property investors, the downsizer movement presents a range of opportunities.
Targeted developments
Investing in developments designed for downsizers can be very profitable. Features like spacious design, high quality finishes and communal spaces appeal to this demographic.
Strategic locations
Properties in areas with easy access to healthcare, shopping and recreational facilities are attractive to downsizers, and so are likely to provide consistent demand and growth.
Rental market
Some downsizers prefer to rent before buying, creating a niche rental market. Investors can capitalise on this by offering properties that meet downsizer needs.
What to consider before investing
While the downsizer market is an opportunity, as always investors need to do appropriate research and due diligence:
Understanding downsizers’ needs: It’s important to find out as much as possible about the local demographics and what downsizers want and need in any area where you’re considering investing.
Quality assurance: It’s important only to invest in properties that are built to the highest standards, as downsizers tend to have high expectations.
Long-term viability: Before investing, look at the expected long-term demand in the area, and the desirability of the location in terms of amenities, transport, etc., as well as the features of the property itself.
Talk to Power of Property about investing in the downsizer market
Successfully investing in property requires expertise and strategy. Michael Lawton and Danielle Charlton at Power of Property have the knowledge and experience to help investors tap into property trends like the downsizer movement.
With years of property investment experience they offer customised solutions to help clients build and grow portfolios, and provide a range of services including market analysis, property selection and investment planning so investors are set up for success. Get in touch to arrange a free, no obligation strategy session today.
The downsizer market in Australia is changing the property landscape, especially when it comes to apartments. By understanding and catering to downsizers’ needs investors can find and exploit a range of opportunities for growth and profit.