Federal budget changes to expand pre-retiree market
21 May 2021
This month the federal budget announced the age to make an extra superannuation contribution up to the value of $300,000 after selling their family house would be lowered from 65 to 60.
The move encourage downsizers is set to reach a new demographic for developments according to Cedar Woods’ Chief Operating Officer Patrick Archer.
"The federal budget changes will open a whole new market to developers and allow pre-retirees to take control of their future,” says Mr Archer.
“We look at the 60 to 65 year old market as generally people who wouldn’t consider a retirement village, but no longer need to live in a large family home. Many of these people want low maintenance living close to the community where they’ve spent most of their lives. They're interested in well located townhouses and larger apartments where they can still host guests and feel like they’ve made a lifestyle choice rather than a downsizing choice.”
“We’re expecting this demographic to increase their activity with the budget changes that now allow them to channel additional funds into their super by selling their family home and moving into something more appropriately sized.”
The lowered age threshold targets a new market of potential downsizers. Based on Australia’s population of 700,000 people aged between 60 and 65, a five per cent uptake of the opportunity to purchase a new home would create demand for 35,000 new dwellings.
Cedar Woods develops various home typologies that vary in value, with new dwellings priced between 80-90 per cent of a suburb’s median price. Townhouses have shown to be popular with the pre-retiree demographic at Cedar Woods’ latest Greville project in Wooloowin, north of Brisbane.
Townhouses in the development are currently selling off-the-plan from $850,000, approximately 90 per cent of the suburb median of $945,000.
Apartments will soon be released at Greville with prices ranging from $400,000 for a one bedroom apartment up to $700,000 for a spacious 3 bedroom apartment. The apartments are priced at approximately 74% of the suburb median and will likely appeal to the downsizer market.