There are numerous reasons as to why both current residents, and those living elsewhere, are drawn to the Eastern Suburbs of Sydney and its surrounds. The combination of lifestyle options provided by the world famous harbour and pristine beaches coupled with efficient proximity to an international CBD, which is thriving off the back of world class amenities and services, make it easy to appreciate the appeal.
Whilst nearly anyone – from your local barista or friendly neighbour – can alert you to the fact that Sydney Real Estate is becoming more and more unattainable for the first time home buyer due to seemingly never-ending growth in property values as well as lowering levels of stock, they likely don’t realise that long-term owner occupiers in established markets, who are looking to trade out of their property and downsize to more lifestyle-appropriate properties or areas, are also feeling this pain. The reason for this downsizer pain, however, is not solely the rapid rise of values but the added factor of unprecedentedly low stock levels of appropriate property.
Herein lies the problem faced by not only those looking to downsize today, but other buyer types as well, particularly in such a strong period of growth where extended time out of the market can cost you dearly. Whilst the opportunity to trade out of their current property, for a seemingly unbelievable price, can be too hard to pass up for some, most vendors still fail to consider their need to purchase again under the same market conditions, where prices are rising and stock levels are lessening simultaneously. Some might turn to the rental market for 6-12 months whilst they count their dollars and assess the next move, only to realise they have since been priced out of the market and now need to reconsider location and in some instances, property type.
Downsizers realise it’s time to move on from their current situation at varying stages in their lives. Today, the most common downsizer facing tough times in today’s market conditions is the demographically labelled baby boomer. Those with children whom have left or are leaving the family home, but are typically still working at some capacity themselves, likely want to remain in the local area they feel a sense of belonging and community in.
‘’Motivated to downsize from their palatial residences, that baby boomer group still seeks to remain within the region they have called home for the past 30 years. They are trading out of their grand $5-10 million homes in exchange for an oversized three bedroom apartment,’’ Nick Heaton, from CBRE’s Capital Markets team said.
This is not to say all downsizers are adamant about remaining in their current area, however, as a large portion of these buyer types are gravitating to locations that offer the right mix of amenities and services, a sense of security and community and of course efficient access to the lifestyle attractions appealing to this demographic.
As discussed by Ben Collier of The Agency, ‘’Downsizing is a lifestyle choice, so lifestyle is naturally at the top of the list when downsizers are looking for a property’’. This desire to downsize into oversized, high end properties, is a factor driving the luxury apartment markets within the Eastern Suburbs and other desirable locations. ‘’Quite simply, there aren’t enough properties to meet the demand from downsizers wanting to call the East home and do it in style’’ Collier states.
With low stock levels and increasing amounts of competition within this downsizer market, contact a Rose & Jones Buyers Agent today to discuss how we can be your unfair advantage and secure you a property efficiently, and for the best possible price.