Life begins at 40, the old adage goes, and a record number of Australians are learning what that means. In December last year, the average age in New South Wales (NSW) hit a historic high, passing 40 for the first time, up from 38 a decade ago. In Victoria, Queensland, and Western Australia, the average age also spiked to 39, according to ABS-based figures by the Retirement Living Council. Australia’s ageing population is set to change the face of the property market again.
Australia’s ageing population – dubbed a silver tsunami – is pushing the issue of downsizing deeper into the national agenda. With the national median age at 39.89 and also about to pass 40 for the first time, urban planners and economists are pondering how to build more properties that cater to the needs of a greying society. Architects and designers say this is a conversation they are having more frequently with clients planning the next phases of their lives.
“Downsizing should feel like you have moved forward and evolved,” says Melbourne-based interior designer Kym Lackmann of Luxe Domain. These days, that does not automatically mean giving up a lot of floor space. Sydney-based architect Brett Churcher, managing director of Playoust Churcher, notes that his predominantly North Shore clients still want a pool and spa, wellness rooms with gym and ice baths, gardens to tend, rooms for hobbies (or wine or music collections), and accommodation for grandchildren.
“In our practice, downsizers are not leaving 1500 to 2000 square metres of land and moving into a small unit,” Churcher explains. “We are finding a different market… wanting a freestanding home on 600 to 700 square metres, which in some suburbs is still quite large. Downsizers still value space and light.”
He adds, “They still need up to four bedrooms: a main bedroom, a guest suite, and his-and-her studies.” Clients often come to Churcher saying, “This is our current home, this is what we liked about it over the years. We don’t need five bedrooms but we want the light, spaciousness and feel, and we want to keep the dining room table because we will still host Christmas lunch.”
Couples who have lived together for decades can provide insight for the design brief, with their habits and quirks often forming a useful blueprint. For instance, an earlier riser going to play golf may wake their partner, prompting Churcher to design an ensuite at the end of a long walk-in robe, rather than directly off the bedroom. Multiple bedroom configurations are often required by downsizers.
Once the design is decided, then comes the cull. Lackmann, who specializes in downsizing, embarks on an “empathetic edit” of her clients’ belongings. “We start with a lifestyle discovery and ask them, ‘What do you want to achieve in your next iteration?’” she says. “Will you be playing golf or bridge, or travelling? How important is the garden?” Downsizers want to retain everything they loved about the family home in their next home.
“They need to be going to a space that has their essence, without having all of the extraneous aspects,” Lackmann explains. Not all downsizers wish to start from scratch, however. In an Armadale townhouse project, she ordered a contemporary upscale of current furniture, removing the hefty arms on old Moran chairs and reupholstering them in a rosy tweed. In another project, Elgin House, the focus was on integrating the client’s record player and vinyl collection, and bringing in velvet and leather furnishings to marry with existing artwork.
Family connection is important. “It is essential they feel they are not leaving their heart and soul behind,” Lackmann says of the retirees who seek her help. Whether that renewed sense of self and purpose can be achieved in an apartment is open to debate.
Townhouses are what LJ Hooker head of research and economics Mathew Tiller calls the “missing middle” in a market crying out for more stock. This is especially true for downsizers for whom pocket-sized apartments hold little appeal. “If you have more ground-floor apartments with a garden, more three-bedroom apartments, or even two-bedroom with a study, and ensure they are catering for retirees, it will help with turnover,” Tiller suggests.
In his federal budget wish list, he called for policies that would encourage downsizers to list their homes for sale and boost stock with less reliance on construction. This included cutting stamp duty, which did not come to pass. “That kind of transactional cost is holding people back from selling up and downsizing,” Tiller adds.
As Australia faces an ageing population, the property market is adapting to meet the needs of older Australians. The conversation around downsizing is becoming increasingly important, as retirees seek to maintain their quality of life while transitioning to homes that better suit their current lifestyles. With the right designs and policies in place, the future of housing for this demographic may be more promising than ever.
