Sydney’s southern suburbs are expected to produce the city’s highest percentage of new downsizer-friendly dwellings, according to a new report.
Independent global property consultancy Knight Frank has published new research about the state of the nation’s downsizer housing market.
The research finds that retirees are the nation’s most active downsizers, although it also finds that entrepreneurs and families were increasingly seeking to move from standalone houses into attached dwellings.
The research also finds that downsizers are looking for dwellings with at least three bedrooms, along with carparking spaces and generous living and entertaining areas.
Southern Sydney a downsizing hotspot
According to the Knight Frank research, between 2020 and 2022, around 44 per cent of dwellings in Sydney medium density projects and 14 per cent in high density projects will have three or more bedrooms which are suitable for downsizers.
Medium density projects include villas, townhouses and apartment buildings three storeys or under.
The report predicts that 92 per cent of dwellings in medium density projects in Sydney’s southern suburbs will contain three or more bedrooms. Downsizing.com.au has recently undertaken an analysis of new downsizer-friendly projects in southern Sydney's Sutherland Shire.
For high density projects, some 23 per cent of southern suburbs projects are expected to be three or more bedrooms.
More downsizer friendly apartments being produced across Australia
Across Australia, apartments with three or more bedrooms are taking up a greater proportion of new projects, in a sign that downsizing is becoming more popular.
Between 2017-19, 70 per cent new medium density project dwellings were three or more bedrooms, but between 2020-2022 this is expected to jump to 81 per cent. For high density projects, the increase over the same period is from 14 per cent to 19 per cent.
Downsizing cheaper than upkeeping a house
The research finds that the costs of maintaining a downsizer-friendly apartment is likely to be lower than a standalone house.
For instance, the research says a ‘prime’ three-bedroom house on 800 square metres is likely to cost $9-15,000 per quarter to maintain, while a ‘super prime’ five bedroom house on 1,400 square metres would cost $21-27,000 per quarter.
This compares to anywhere between $3,-8,000 per quarter for a ‘prime’ downsizer apartment, depending on the level of on-site amenities and whether the project is low or high-rise.
“For active retirees, many buyers tell us their house is no longer required to provide the lifestyle they want,” said Knight Frank’s Head of Residential Research, Australia Michelle Ciesielski.
“Often the cost to upkeep the home, pool and garden outweighs the surplus space they once desired. Downsizing the living areas is not part of this movement – the yard most certainly – but the new luxury apartment must be the right size, with amenities to match.
“Rightsizers want to be in a walkable location with proximity to activity hubs and amenities.
“From the apartment itself they desire high security and concierge for lock-up-and-leave, a reputable developer and builder with certainty of delivery, single-level, in-house amenities, a good view and aspect, access to transport links, a sense of community within the complex, smart living technology and a new modern building.”
Downsizing.com.au is Australia’s leading downsizing and retirement property site.
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