Revealed: The Qld suburbs set to boom thanks to a silver tsunami

Queensland’s coastal suburbs and inner-city apartment hubs are set to see a silver tsunami of wealth from next year as Baby Boomers with big superannuation budgets start downsizing.

New data reveals cashed-up retirees are spending their golden years in the state’s coastal towns and inner-city suburbs, which could signficantly pump up property prices in 2025.

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All Boomers will be able to access their super from next year when the generation enters their sixties, and McGrath founder John McGrath suggests many will trade their current homes by downsizing, seachanging, investing, or helping younger relatives get into the market.

Main Beach on the Gold Coast is the most popular suburb among retirees, according to Finder research.

Research from comparison site, Finder, reveals Main Beach is the most popular downsizing suburb in the country, with more than 37 per cent of its population over the age of 65 and many retirees moving there in the past year.

Queensland has seven of the 10 most popular retiree suburbs in the country, including Bribie Island, the Southern Moreton Bay Islands incorporating Lamb Island and Russell Island, and Kings Beach in Caloundra.

This wave of cashed-up buyers is backed by huge equity gains over the past five decades, with separate research showing the typical Brisbane house is now worth around $900,000 more than in 1975, when baby boomers would have paid about $23,700 for their first home.

This three-bedroom duplex at 1/22 Caraway Cres, Banksia Beach, is on the market for offers over $780,000. Bribie Island is one of the most popular suburbs among retirees, according to Finder research.

Money.com.au’s research and data expert, Peter Drennan, said retirees buying their final homes today were at the peak of their property wealth and could potentially release equity gains of as much as 3,800 per cent from the sale of their first house.

“The Silent Generation and Baby Boomers bought homes when prices were just four to five times the median wage, while today’s families are paying double to triple that,” he said.

Mr McGrath said mortgage-free Boomers had the discretionary cash to drive growth in the property market in the coming years, with aspirations for a lock-up-and-leave home base.

Kings Beach, Caloundra, is one of the most popular suburbs among downsizers, according to Finder research.

“Many baby boomers aspire to find a home which is safe, has space for hobbies and

guests, is near public transport, requires little maintenance and has room for a

small garden,” he said.

Mr McGrath said a lack of housing supply had prevented many boomers from finding the types of homes in their preferred locations, but that was about to change.

“More supply of quality, affordable housing will likely be made available over the medium term as the National Housing Accord is embraced by all levels of government, investors and the residential development, building and construction sector,” he said.

CEO of McGrath Estate Agents, John McGrath.

“This is likely to benefit baby boomers and have a flow-on effect across the entire

property market.

“For landowners and developers, this presents a strong opportunity to take advantage of new planning controls to supply new housing stock which will meet the needs of downsizing baby boomers. Already architects and developers are catering for this trend by delivering spacious

and luxurious inner-city apartments.”

Finder head of consumer research Graham Cooke said the destinations identified in the research were popular for downsizers now, which would probably continue in the future and potential lead to price rises down the track.

Finder’s head of consumer research Graham Cooke.

“In a lot of cases, (downsizers) have paid off their mortgage on a bigger house … which means they have more potential topuff up the housing prices in those areas,” Mr Cooke said.

“They will generally be buying their houses outright … so they’ll have more money to play with.”

Apartments in Consolidated Properties’ project, Monarch Residences, on the riverfront in the inner Brisbane suburb of Toowong have been snapped up by Boomers looking to downsize.

Consolidated Properties CEO Don O’Rorke said more than half of the purchasers in the almost sold-out development were Baby Boomer downsizers from the surrounding western suburbs, buying apartments worth up to $5m.

An artist’s impression of the ‘Lagoon’ towers by Drew Group, which are planned for Main Beach on the Gold Coast.

Rightsizers and downsizers have also flocked to Drew Group’s Lagoon Main Beach project — a two-tower development built around a central lagoon pool with resort-style facilities on Cronin Avenue.

A significant number of apartments have sold to Gold Coast, Brisbane and southern state buyers, who intend to move to the Gold Coast following the estimated completion in the summer of 2025.

Meanwhile, retirement villages are close to capacity, recording a vacancy rate of just 5 per cent.

“For the downsizers, there is the opportunity to release significant equity from the family

home and therefore boost funds for a more aspirational and exciting retirement,” Mr McGrath said.

Daniel Gannon, executive director of the Retirement Living Council.

Retirement Living Council executive director Daniel Gannon said with 710,000 people intending to retire in the next five years, retirees had an important role to play by considering ‘rightsizing’ into homes better designed to suit their needs.

“This serves a dual purpose in freeing up housing stock for younger aspiring home buyers, but it also frees up retirement income given the affordability value proposition of retirement communities,” Mr Gannon said.

“Australia’s ageing ‘hot spots’ are also likely to be retiree hot spots given most people prefer to stay in the same community they have raised a family and established trusted relationships with GPs, physiotherapists and other allied health professionals.

“With an ageing population, an aged care crisis and demand for housing outstripping supply, it’s never been more critical to develop age-friendly housing that can address these issues in meaningful ways.

“Anecdotally, we are seeing over-75s flocking to metropolitan communities that are walkable, connected, close to transport, amenity and healthcare options. The problem isn’t the demand or appetite for this type of housing — it’s the lack of supply.”

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