Baby boomers push up demand for apartments

Baby boomers or those born between 1946 and 1964 are looking at their post-retirement lives today. Well! How does it connect to the property market? Truth be told, it can have a huge impact on the real estate scene and older people might just turn out to be the next big force in the property (generally) and prestige (specifically) market in Australia, says Nicola Trotman for the Property observer.

 

As a first, there will be a lot more apartment sales happening all around as these people begin to look for smaller apartments (part of their downsizing). About a year ago, there were 0.25 million people at north of 65 years. When such a vast multitude looks for apartment homes, it can mean a substantial push to the real estate scene.

Apartments are safer

Such homes are short on gardens and ‘idyllic feel’ but are definitely more secure against burglars (something that older people are more vulnerable to). Moreover, the apartment life offers greater options of being closer to the city life; shopping, entertainment and so on, something that old people have a lot of time for.

+ 65 citizens seeking both inner city and outer city life

Older citizens moving to Kirribilli and Pyrmont for a better inner city experience is a clear proof of this fad. Yes, those seeking away-from-the-city experiences are flocking to places like Bowral or the Blue Mountains. In absence of apartment dwellings, they are looking for cottage houses here. The prestige market is leapfrogging of late but till the time it shows sustained growth for at least a couple of years, retirees will look for more modest apartment options instead. Read the original article here.

To close the deal

I think that a part of the investors’ and second+ buyers’ fraternity is certainly being led by the +65 citizens today. With a population close to 250,000, and a budget high enough to choose dwellings of their desire, they are certain to continue influencing the real estate scene in a substantial way.