Amid the turbulence of the COVID-19 pandemic, one group of residential property buyers has remained cashed-up and motivated to move home - downsizers.
Two leading digital platforms have now come together to give Australia’s property and marketing industry prominent and targeted exposure to these highly prized consumers
Downsizing.com.au and OverSixty.com.au have formed a partnership to promote downsizer-friendly property projects to their combined audience of mature-aged consumers.
Downsizers a growing force
It’s worth taking a little time to explore how downsizers are becoming a dominant and growing force in Australia’s real estate market.
In the ten years to 2019, the number of Australians aged over 50 increased by 25 per cent, well above the growth rate of people below this age. This means there are now 8.5 million Australians aged over 50, representing a third of Australia’s population.
People in this age bracket are predominantly homeowners. Around 50 per cent of Australians aged over 55-64 own their home outright, and this percentage only increases with age.
What’s more, over the last five-ten years, Australians over 50 have enjoyed significant price increases in the value of their homes - irrespective of any current COVID-19 market wobbles. Australians over 50 are now keen to use this home equity to downsize.
A 2018 survey of 2,500 Australians aged over 55 found that one in four had downsized, and a further one in three had considered doing this.
This means around 1.8 million Australians have already downsized, and a further two million have considered making the move. These figures show the incredible size, and potential, of Australia’s downsizing market.
Australians over 50 have a range of motivations to downsize - usually either to improve their lifestyle or boost their finances - or a mixture of both.
Downsizers are mobile, with only 22 per cent staying in the same neighbourhood.
A survey of Downsizing.com.au readers has shown that Australians regard “beachside holiday living” as their most preferred “dream downsizing location”, closely followed by “urban convenience” and then a “relaxed rural setting”.
Downsizing for financial gain is typically a higher priority for younger downsizers (such as those in their 50s and 60s) to remove their mortgage debt and strengthen their retirement income.
A growing number of these younger downsizers associate themselves with the FIRE movement - that is to achieve “financial independence” and “retire early”.
Downsizers looking for diverse housing options
Despite the term ‘downsizing’, Australians over 50 aren’t always looking for small homes.
In fact, research has found that while many downsizers are happy to have less bedrooms and yard space (compared to their family home), they highly value spacious living and entertaining areas. Others may even increase their home size, if it means moving to a rural acreage or another lifestyle-rich location.
Downsizers are also willing to explore a wide range of housing options, from the well-known options such as retirement villages and land lease communities, through to general apartments, villas and duplexes and even granny flats and tiny homes.
According to a survey by Downsizing.com.au and OverSixty.com.au, around one in three Australians over 50 say they are now more likely to consider downsizing, because of the COVID-19 pandemic.
The primary motivations for these downsizers are to move into a like-minded community and to live in a new and maintenance-free home, while others want to boost their retirement finances or move out of a crowded city environment.
It’s no surprise that some senior Gold Coast real estate figures predicted that downsizers would replace international investors in that city’s real estate market.
Downsizing.com.au and OverSixty.com.au can deliver results
Together, Downsizing.com.au and OverSixty.com.au can deliver an unprecedented audience reach and provide unique market insights for agents and marketing professionals who want to reach downsizers.
Starting as a Facebook community six years ago, OverSixty.com.au has grown its audience rapidly to become the one-stop destination to keep over 60s in the know.
Currently owned by Direct Group, OverSixty.com.au was previously one of Fairfax Media’s digital enterprise assets, resonating strongly with readers of the SMH and The Age due to the age profile and affluent AB demographic.
Meanwhile, since 2003, Downsizing.com.au has been Australia’s number one online destination for anyone looking to downsize from the family home, or to the next stage of retirement living.
Together, these two platforms can reach one million website users per month, along with 500,000 Facebook followers and 120,000 newsletter subscribers.
This online partnership comes at a time when many traditional print media publishers are closing down many local newspapers.
New clients who want to find out more about this great opportunity can email Downsizing.com.au at [email protected]