Savvy house-hunters are taking advantage of opportunities to snap up properties that have been playing hard to get for decades.
WA real estate experts revealed this week that senior West Australians with homes in suburbs that people typically never want to leave have been listing their homes for sale to convert the wealth they have made from their property into cash.
It comes as young people across the nation benefit from a trend dubbed the “great wealth transfer,” which will see them inherit an estimated $5.4 trillion in assets by 2050.
The wealth transfer peak is expected around 2041, with a significant number of baby boomers passing away and their wealth being distributed.
But for many, amid sky-high property prices and soaring interest rates, an inheritance appears to be arriving decades early.
According to The Raine & Horne Group the inter-generational wealth transfer is underway, creating unprecedented opportunities to purchase properties that have been tightly held by the same family as owners reassess their assets, retirement plans and legacy.
Speaking from Sydney last month, the group’s executive chairman Angus Raine said the combination of an ageing population, changing family circumstances and the transfer of property wealth between generations is creating an unparalleled wave of activity across the housing market.
“Properties are being sold to unlock equity, simplify estates or to help the next generation establish their own financial future,” noted Mr Raine.
The Bankwest Curtin Economics Centre stated around 17.5 per cent of Australians are aged 65 or over and housing remains their biggest asset.
They are holding an estimated $2.8 trillion in net property wealth, which is just over 30% of Australia’s total housing assets.
Mr Raine said now that these property owners are ageing, he is seeing a growing number of homes held by the same family for several decades come to market.
Many are coastal or have unique features such as historical significance.
They are also in locations where homeowners tend to lock in for the long-haul, which he said is creating rare buying opportunities.
“In my 35 years in real estate, I can’t recall seeing so many property advertisements highlighting that a property is being offered for sale for the first time in 30, 40, 50 or even 80 years,” said Mr Raine.
In Perth, local real estate agents agreed that they are noticing a wave of tightly held properties hitting the market.
Some are also being sold quietly with no formal listing and without ever having to make a public debut.
Deborah Brady, senior sales executive at Ray White Cottesloe/Mosman Park, has sold a flurry of homes held in the same families, including one for about 28 years and another for at least 50 – all on prized western suburbs streets.
“These were in key spots, if you like, overlooking the ocean and just around that golf course area along parts of Broome, Pearse and Forrest Streets,” she said.
“If you looked behind each individual sale, generally speaking, you’ll see that someone, or a family, have been there for a very, very long time and has held that property.
Ms Brady said she sold 161 Broome Street in Cottesloe “off market” in June for $5.05 million.
The owners, Maureen and Geoffrey Robinson, purchased the house in February 1969 for $28,000 after selling their Balga home at 34 Wolya Way for $19,000.
The owners’ son said: “That $9,000 changeover was a lot for mum and dad back then but seems little these days.
“Mum and dad later did renovations to add the upper level back around 1995, which included two bedrooms and a bathroom.”
Ms Brady said the reasons these tightly held properties are coming to market appear to vary.
“There is a little bit of what is happening over on the east coast happening here in Perth’s western suburbs, but what I am seeing here is two strands,” explained Ms Brady.
“I’m seeing some groups that would like to downsize but are struggling to find a property to downsize to so they are instead almost going into care and sort of skipping a step, if that makes sense.”
As soon as they were made available to purchase, she said a considerable number of western suburbs seniors sold their large homes in the area and moved into the independent living retirement community at Waterfront in Cottesloe.
Some went into residential aged care at Marine Views next door to it and others bought spacious, luxury apartments over at The Grove Residences in Claremont.
“People don’t need to tell their agent the whole story about why they have decided to sell, and as an agent I am always going to be very discreet anyway, but I can say that people here are very family-focused and certainly there are conversations around wanting to help set kids up for the future,” Ms Brady said.
“They are also wanting to take a big chunk of money out of that sale to put into their super while downsizing at the same time.”
Haiven Property real estate agent Oliver Hess said he is also seeing more rare properties being listed in Perth’s northern coastal suburbs.
“We’re seeing more properties come to market that have been held by the same families for 30, 40 and even 50 years,” he revealed.
He cited 6 Karrinyup Road in Trigg and 19 Padbury Circle in Sorrento as recent examples.
“These are special positions that rarely change hands,” Mr Hess said.
“We’ve always said that the length of time a family holds a property is often the greatest testament to just how good the location or property really is.
“A combination of downsizing, lifestyle changes and generational wealth transfer is driving some of these sales.”
Until recently, one of the biggest barriers to people selling families homes has been a lack of quality options to downsize to in the same area.
Naturally, most owners “don’t want to leave the suburb or community they’ve spent decades in,” he said.
But developments such as 331 West Coast Drive in Trigg, Ora in Sorrento and other new apartment options in Scarborough, Karrinyup and City Beach are changing that by providing more opportunities for downsizers.
“This should help unlock more tightly held family homes as owners can transition into low-maintenance living without sacrificing the coastal lifestyle they’ve enjoyed for decades,” Mr Hess added.
He said the beauty of long-term property ownership is sitting on significant equity with little or no debt.
“I suspect some are looking to unlock that wealth to help their children enter an increasingly expensive property market, particularly to keep their families living close by,” Mr Hess added.
He said this, in turn, provides a chance for property hunters to get into sought-after Trigg, North Beach and Watermans Bay, which are “incredibly tightly held.”
Mr Hess credits the beaches, swimming spots, cafes, schools and strong community feel, adding amenities like those create places and a real estate market that people keep a close eye on and then swoop on to settle down in.
He added: “West Coast Drive is a perfect example.
“There is only a select number of homes along this iconic coastal stretch and that supply will never change.
“You simply cannot replicate these positions, which is why they’re so tightly held and why buyers are prepared to wait years for the right opportunity.
“Now we’re starting to see some generational turnover in these coastal pockets, creating rare opportunities for younger families to secure premium positions and establish themselves for the next 30 to 40 years.”
