Downsizers will drive market

Downsizers will drive market

Peard chief executive Peter Peard said the real estate industry had traditionally focused on the needs of first-home buyers and families upgrading to a bigger or newer home.

“The demand for rezoned, higher-density land in established areas is set to surge due to the dynamics of the WA property market, which is rapidly changing because people are now living longer and families are getting smaller,” he said.

“In particular, the Baby Boomer generation that drove the demand for family homes over the past 30 years is now getting older and wanting to downsize.

“The reality is that this age group will rival first-home buyers in terms of their economic importance to the real estate sector over the next decade.”

Australian Bureau of Statistics projections for WA showed the proportion of people aged 65 years and older in the population would rise from 10.3 per cent in 2006 to 15.9 per cent by 2026.

The ABS also projected the proportion of the WA population aged 15 and under will fall from 22.7 per cent in 2006 to 20.5 per cent in 2026.

“We are finding that many of these downsizers want to live in an area close to their current home, which generally tends to be in established suburbs,” Mr Peard said.

“This trend has seen a big growth in the number of higher-quality apartment developments, especially in the western suburbs and along the coastal strip. There has also been an increase in smaller boutique apartment developments in established suburbs closer to the city.”

Mr Peard said with the State Government committing to increasing density levels in established areas to reduce urban sprawl, he expected apartments and high-density developments would become more commonplace over the coming years.

In response to this, the Peard Hillarys office is offering a series of free seminars for property owners to help uncover what rezoning means for them along with determining the opportunities it presents.

To register for the next available seminar, contact Byron Wallace on 9447 0011.