Retiring Baby Boomer boom to shift Perth property market
As a result of an oncoming large increase of Baby Boomers retiring, there is a rise in demand for high density living in Perth.
Shane Kempton, chief operations officer for Professionals Real Estate Group in Western Australia and the Northern Territory, said this is a burgeoning trend, with 32 per cent of the homes built in the last six months being higher density.
“Traditionally, the Perth real estate market has been dominated by larger family style homes but this is now rapidly changed due to our ageing population and the fact that more people are living alone,” Mr Kempton said.
Further, predictions by the Australian Bureau of Statistics show Western Australians aged 60 and over are also rising, from 15 per cent in 2001 to an estimated 23 per cent in 2021, which Mr Kempton is seeing increased demand for apartments, town houses and villas from Baby Boomers looking to downsize.
“This trend has also seen the construction of new apartment developments in areas outside the inner city such as Rockingham, Midland and Joondalup,” he said.
“For example, during the second half of 2017, more than 100 new higher density homes were given building approvals in Joondalup.
“This downsizing trend will set to accelerate as the population of Perth continues to grow and the government seeks to encourage higher density living to limit urban sprawl.”
The uptake in higher density homes in the Perth area is also set to facilitate more than just Baby Boomers.
“The pressure to encourage higher density living in Perth has been highlighted by recent population projections by Infrastructure Australia, who predicted that the population of Perth could surge to 4.4 million people by 2046,” Mr Kempton said.
“This trend towards higher density living has also seen Perth home buyers embrace the concept of buying off-the-plan over the past decade.
“Many higher density homes such as apartments are now sold off-the-plan before construction and professionals expect this trend to become even more popular in the coming decades.”
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