The best and worst Australian suburbs for downsizing have been revealed in an extensive new report by Property Credit.
The data reveals a significant challenge facing the nation’s elderly population seeking to downsize from houses with gardens to retirement villages, villas, or townhomes with courtyards.
The dire shortage of suitable downsizing options comes amidst increasing demand for affordable housing from younger buyers.
Property Credit’s Chief Executive Officer Giordano Stepancic said seniors are finding themselves competing in a rapidly shifting market.
“For too many Australian seniors, the dream of downsizing to a more manageable home is being undermined by a critical supply shortage” Mr Stepancic said.
“This report sheds light on the stark reality that, for a growing number of our elderly, the options for local downsizing are not just limited; they’re practically non-existent,” he added.
Mr Stepancic offered that younger buyers priced out of the detached home market, are turning to villas and townhomes, exacerbating the competition and leaving seniors with few viable options.
“Townhomes and villas, once the mainstay for downsizing seniors, are now hotly contested by younger generations unable to afford freestanding houses.” Mr Stepancic said.
“This shift is not just about changing market preferences; it’s a reflection of the acute affordability crisis affecting all Australians.”
The consequences of this supply and demand imbalance have raised concerns that many elderly homeowners will find themselves trapped in unsuitable homes, facing the financial and physical burdens of maintaining properties too large for their needs.
“We’re witnessing a troubling trend where elderly Australians are choosing to stay in their existing dwellings, often alone and under financial strain, because the market simply does not offer them a feasible alternative.”
| Rank | State | Suburb area | Suburbs | Villa Count | Persons Over 75 | Villas per person | Estimated Current Listings |
| 1 | QLD | Southern Moreton Bay Islands | Karragarra Island, Lamb Island, Macleay Island, Russell Island, Coochiemudlo Island | 0 | 1166 | 0.00 | 0 |
| 2 | NSW | Kurrajong Heights – Ebenezer | East Kurrajong, Ebenezer, Freemans Reach, Glossodia, Grose Vale, Grose Wold, Kurmond, Kurrajong, Kurrajong Heights, Kurrajong Hills, Sackville, Tennyson, The Slopes, Blaxlands Ridge, Wilberforce, Bowen Mountain | 19 | 1265 | 0.02 | 0 |
| 3 | VIC | Emerald – Cockatoo | Beaconsfield Upper, Mount Burnett, Nangana, Beenak, Pakenham Upper, Clematis, Cockatoo, Dewhurst, Emerald, Avonsleigh, Gembrook | 22 | 1020 | 0.02 | 0 |
| 4 | SA | Aldgate – Stirling | Piccadilly, Scott Creek, Stirling, Upper Sturt, Bradbury, Bridgewater, Cleland, Crafers, Crafers West, Dorset Vale, Heathfield, Ironbank, Longwood, Aldgate, Mount George, Mylor | 71 | 1317 | 0.05 | 0 |
| 5 | NSW | Budgewoi – Buff Point – Halekulani | Halekulani, Budgewoi, Budgewoi Peninsula, Buff Point, Colongra | 71 | 1114 | 0.06 | 5 |
| Rank | State | Suburb area | Suburbs | Villa Count | Persons Over 75 | Villas per person | Estimated Current Listings |
| 1 | WA | Nollamara – Westminster | Westminster, Nollamara | 3813 | 1034 | 3.69 | 24 |
| 2 | WA | Innaloo – Doubleview | Doubleview, Innaloo | 3442 | 1331 | 2.59 | 20 |
| 3 | WA | Como | Como | 3370 | 1356 | 2.49 | 19 |
| 4 | VIC | Pascoe Vale | Pascoe Vale | 3281 | 1333 | 2.46 | 31 |
| 5 | NSW | Kingswood – Werrington | Kingswood, Werrington, Caddens, Claremont Meadows | 2326 | 1150 | 2.02 | 20 |
The Downsizer Superannuation Contribution Program currently allows individuals over 55 to invest up to $300,000 from their home’s sale proceeds into their superannuation, leveraging tax benefits.
Stamp Duty Discounts, available in certain states and territories, further reduce costs associated with acquiring downsized residences.
Plus, the shift to smaller, more manageable properties cuts down on maintenance, boosts lifestyle convenience through easy access to community amenities, and offers a secure ‘lock-and-leave’ lifestyle suited for seniors that travel.
Despite the benefits, the downsizing journey in Australia still faces considerable challenges.
“In light of these findings, it’s imperative that we come together as a community to develop solutions that will enable our seniors to find homes that suit their needs, without the stress of competing in an overstretched market,” Mr Stepancic said.
Download the full report Downsize locally: Best and worst suburb options in Australia here.
Visit property.credit for more information on our services or you can contact us on 1300 829 536 (au) or 03 668 2144 (nz).
This article is for general information purposes only and is not intended as financial product advice. Consider seeking independent financial advice that relates to your individual circumstances.
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