In recent times the off-the-plan apartment market in Brisbane has been dominated by investors. However a recent report by HSBC believes this is about to change, and that upgraders and downsizers will become the major % of buyers in the future.
We are all aware of the long term trend for aging baby boomers to sell up their home in the suburbs and move to a comfortable inner-city apartment for a less complicated life. However a recent HSBC report has said that this trend is soon to become much stronger due to financial pressure on retirees to fund their retirement. The HSBC report says that up to 26% of working age Australians now plan to sell their existing home to help fund their retirement.
Currently, the report cites that only 6% of all surveyed retirees have previously downsized to fund retirement, meaning a strong increase in demand for additional downsizing in the near future.
Only time will tell if the 26% end up downsizing to off-the-plan apartments, but with the current restrictions on investors imposed by Australian based lenders, there is no doubt that this should lead to an increased focus on building suitable apartments for downsizers.