Baby Boomers behind soaring sales in Queensland
As new figures show more than a quarter of all settlements during September were in the Sunshine State, the CEO of John McGrath Estate Agents CEO explains why.
AUSTRALIANS heading into their 60s and 70s are driving an interstate downsizing boom in the Sunshine State, according to John McGrath.
As new figures show more than a quarter of all settlements during September were in Queensland, the John McGrath Estate Agents CEO explained why.
“The reasons for Queensland having more sales include strong levels of interstate migration,” he said.
“Queensland has always been a popular lifestyle destination for retirees, and that trend continues.
“But we’re finding it’s on a larger and increasing scale today.
“We’ve now got this historically large generation of Baby Boomers reaching their 60s and 70s, and many of them are deciding to downsize or relocate now.
“This has implications for many seachange and treechange markets, not just because it’s lifting demand generally, but also because many Baby Boomers have generous budgets to buy with.
“So they can compete at auction more confidently and with fewer limits compared to other buyers.”
As this group bought family homes many decades ago when the cost of housing against income was lower, they have 30-plus years of capital growth behind them.
“And they’re taking that money out of the expensive capital cities into more affordable regional areas,” he added.
“This is one of the reasons for the particularly strong price growth and record high median home values we see today in Brisbane and regional Queensland.”
The above average number of first-time buyers in the market despite high interest rates highlights the influence of the transfer of intergenerational wealth, according to Mr McGrath.
“Australians aged 60 and over own a combined $4.5 trillion in assets, with at least $3 trillion of this – much of it in property – to be passed on to their children over the next decades,” he said.
“Many Baby Boomers are releasing capital by selling their family homes, buying a new place for themselves on the coast, and giving their kids a bit of help to fund the deposit on their first home.
“That transfer of intergenerational wealth is already affecting the market. Many young people, especially in the big cities, cannot buy their first home without the Bank of Mum and Dad.
The power of that wealth transfer is glaringly evident, given we’re seeing above-average numbers of first home buyers in the market despite higher interest rates and a cost-of-living crisis.”
