With medical advances leading to an increasing life span in Australia, it’s only a matter of time before the face of the real estate industry starts to change.
According to data held by the Treasury, there are currently 2.5 million Australians aged on or over 65. By 2042, that number is expected to increase to 6.2 million, which raises the age group from 13% to 25% of the total population.
This change will no doubt have an effect on Australia’s economy. The Australian Bureau of Statistics details that 83% of people aged 65-74 and 81% of people over 75 own their properties, so this shift will most likely impact the property market. But where exactly do Australians move once they retire?
Australians retire away from the city
Although prices in capital cities are increasing, it’s not because of demand from retirees. CoreLogic RP Data states that retirees often move out of big cities and towards coastal or regional towns.
This is largely because over-65s no longer have to worry about living in close proximity to their places of work. This is instead substituted with other factors, including being close to their children and grandchildren.
South Australia is most popular for retirees
The Sunshine Coast and Gold Coast are often thought to be popular choices for over-65s. In recent years, however, they’ve seen an overwhelming influx of younger inhabitants. Although the sun and beaches are a magnet for all ages, it’s South Australia that attracts the most retirees.
Victor Harbor is top of CoreLogic RP Data’s list of areas with the largest number of over-65s, coming in at 37.9%. This area is located 80km south of Adelaide and boasts a significant 1 in 3 residents over the age of 65.
Copper Coast in Kadina is also a popular location. Within the Yorke Peninsula and less than 3 hours away from Adelaide, the town is host to a wide range of amenities, including aged care facilities, supermarkets and a variety of local attractions.
Roughly an hour from Adelaide and based on the western part of the gorgeous Fleurieu Peninsula is Yankalilla. Not only is this area a prime spot for a warm afternoon walk – it’s also incredibly affordable. CoreLogic RP Data shows that the average price of a unit here is $231,651, with house prices coming in at a surprising $356,619.
For more information about your local real estate market, speak to your local Ruralco Property office today.