Insight

17.03.20  Buying Tips

 

The New Downsizers In Sydney’s Eastern Suburbs

Downsizers have become a major force in the residential property market in recent years.

But it’s not just empty-nesters who are downsizing in today’s market. Many younger families are choosing lifestyle and convenience over a large property.

And Sydney’s eastern suburbs are at the top of their wish list.

The changing face of the downsizer market

Once the exclusive domain of older Australians looking for a smaller property after selling the family home, the downsizer market is becoming more diverse.

Working couples and families with children are joining the downsizer ranks, trading in large lots for the convenience of lower maintenance living.

It’s part of a wider industry shift to smaller properties identified in recent research reports and a growing trend we’ve observed in the eastern suburbs.

CommSec notes the average size of an Australian freestanding house has fallen to a 17-year low of 228.8 square metres as buyers increasingly embrace apartments and smaller houses on smaller parcels of land.

Today, apartments account for 41% of homes built, compared with 28% just eight years ago.

The Housing Institute of Australia says there has been a paradigm shift in the housing market away from Australian dream of a quarter-acre block in the suburbs.

“The profile for new housing supply has changed forever,” it says.

The appeal of downsizing

There are many demographic and behavioural factors driving the downsizing trend.

Urban consolidation has led to more medium density development along key transport corridors, creating opportunities for homeowners to embrace a more convenient lifestyle.

For these buyers, proximity to work, schools, shops, parks and recreation takes priority over property size.

There can be a strong financial benefit to downsizing, with savings covering everything from lower stamp duty in the purchase price to lower power bills and the prospect of lower – or zero – mortgage debt.

The reduced maintenance and lower running costs associated with a smaller property have the added lifestyle benefits of more personal time, reduced stress and a healthier bank balance.

These are important considerations for downsizers who are still working and raising families and looking to free up time.

Environmental considerations are also becoming a factor. Many people are seeking to reduce their environmental impact, fuelling a desire both for smaller homes and more sustainable development.

And clever design features in new and renovated properties mean you can still live large in a smaller home.

It’s all good news for Sydney’s eastern suburbs

The eastern suburbs are in the box seat to capitalise on the growing downsizer market.

With a wide variety of housing stock covering terraces, free-standing homes, apartments and luxury penthouses, there is much to satisfy this cohort across all price points.

The eastern suburbs’ cosmopolitan lifestyle is second to none and much of it is in walking distance of the front door.

Whether it’s premier sports and entertainment venues like the SCG, green spaces like Centennial Park, the famed Sydney Harbour and Bondi Beach, the CBD, cultural hubs and galleries, and restaurants to whet every appetite, Sydney’s east has it all.

Importantly, there is also world-class social infrastructure covering a range of public and private schools, tertiary institutions, hospitals and healthcare facilities and transport options.

And many suburbs, like Paddington and Woollahra, have a village atmosphere which has a strong appeal to those seeking lifestyle and convenience.

All of these factors are significant draw cards for downsizers looking to step into an established area with ready-made lifestyle benefits.

With families playing an increasing role in the downsizer market, we can expect to see greater diversity and demand for properties that meet their requirements.

If you’re looking to downsize in Sydney’s east contact my team today.

Download our 2018/2019
Eastern Suburbs Market Report

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