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Exodus: How Boomers are transforming this city’s market
As Australia’s Baby Boomer generation head into retirement, the prospect of downsizing also becomes a reality. For one Australian city, this trend is having a “major impact”.
Exodus: How Boomers are transforming this city’s market
As Australia’s Baby Boomer generation head into retirement, the prospect of downsizing also becomes a reality. For one Australian city, this trend is having a “major impact”.
Demand for higher density living options in Perth is set to grow significantly as Baby Boomers head into retirement, the chief operations officer for Professionals Real Estate Group in Western Australia and the Northern Territory, has said.
Shane Kempton pointed to the ABS figures for the last six months of 2017, which show there were 2,854 higher density homes, like apartments, granted building approval in the city.
Commenting on this, he said, “This represented 32 per cent, or nearly one-third, of the total number of homes given building approvals in Perth over this six months period.
“Traditionally, the Perth real estate market has been dominated by larger, family-style homes but this is now rapidly changed due to our ageing population and the fact that more people are living alone.”
The ABS predicts that by the end of 2021, 23 per cent of all Western Australians will be 60 or over. That’s compared to 15 per cent in 2001.
Mr Kempton said, “This population shift will have major implications for the Perth real estate market and in particular result in a growing demand for higher density homes.
“Already this trend is being evidenced with professionals experiencing a rising demand for new apartments, town houses and villas from Baby Boomers who are selling their large family home and wanting to live in a new, [low] maintenance home close to social infrastructure such as shopping centres.”
He said the trend has manifested in the construction of apartment developments in areas like Rockingham, Midland and Joondalup, which are all outside of the inner city.
Continuing, Mr Kempton highlighted that more than 100 new higher density homes were approved for building in Joondalup over the second half of 2017.
“This downsizing trend will set to accelerate as the population of Perth continues to grow and the government seeks to encourage higher density living to limit urban sprawl,” he said.
“The pressure to encourage higher density living in Perth has been highlighted by recent population projections by Infrastructure Australia, who predicted that the population of Perth could surge to 4.4 million people by 2046.”
Mr Kempton added that the downsizing trend is also evidenced by home buyers embracing the idea of buying properties off the plan.
“Many higher density homes such as apartments are now sold off the plan before construction and Professionals expects this trend to become even more popular of the coming decades,” he said.
For those considering an off the plan purchase, Mr Kempton said it’s important to remember that the physical space of the property is critical as more spacious homes are often easier to resell.
Additionally, it’s a good idea to check with the developer’s previous clients to ensure that you will be happy with the finished product.
Taking the development plans onsite will also help prospective buyers ascertain the potential views, and understand the dollar gains or losses these views will provide.
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