Retirement and Real Estate: The Best Australian Locations to Retire
"Retirees will continue to hunt far and wide for the best lifestyle they can afford. What areas should they consider? "
Residz Team 7 min read
East or west, home is best!”
Picking a location to retire to can take up a lot of thinking time. But, that’s if the retiree wants to move away at all! In the UK, a Saga Group survey found 7 out of 10 (70%) respondents would like their retirement location to be their hometown.
That may be the same in Australia, but research from AHURI found that only 22% of older Australians who downsized did so in the same neighbourhood as their original dwelling. Instead:
- 42% moved to neighbourhoods that were new to them
- 37% moved to a location they already knew, either through friends or family or as a holiday destination.
In this blog, we’ll name popular retirement destinations and some of the factors playing a part in choosing the best place to retire.
The Decision to Relocate When You Retire
Just 8000 older Australians downsized in 2021, and governments have tried a number of incentives to boost retirees’ interest in downsizing. They’d love to see older Australians consider a wider range of retirement real estate options, such as moving to a smaller home nearby or in a popular retirement location, to free up more big family homes.
AHURI’s survey found prevalent primary reasons for downsizing were: lifestyle (27%) and financial (27%) reasons; the garden or property requiring too much maintenance (18%); and being ‘forced’ to move (15%).
National Seniors found that, generally, for older homeowners:
- The family home is the largest household asset;
- Older households are ‘asset rich, income poor’;
- Drawing on housing equity to fund retirement is a last resort;
- Moving into residential aged care is becoming less likely, while moving to age-specific housing, such as retirement villages, is becoming more likely; and
- Older Australians have a strong aversion to debt, with equity release products, such as reverse mortgages, continuing to be a small market.
Where the Older People Are
Before COVID’s impact on regional areas, where more young professionals made tree and sea changes to affordable LGAs, these were the regions with the highest percentages of older people.
These figures were published in early 2020. Since then young buyers and renters have been moving in, enjoying the freedom of being able to work remotely from anywhere in Australia. As a result, younger and older people both now compete for homes in what have been traditional retirement areas.
Strong demand coupled with persistent supply shortages is driving up the cost of housing in regional areas, making formerly affordable retirement locations less financially attractive.
Nevertheless, cashed up downsizers or financially-strapped retirees will continue to hunt far and wide for the best lifestyle they can afford.
So what factors do older Australians want in a great location for retirement?
Factors Involved in Deciding a Great Retirement Location
Older Australians are happiest when they retire to small regional towns says Downsizing.com.au. It cites the AHURI survey showing 82% of retirees in small regional towns were happy with their location - a larger percentage than any other location type across Australia.
A survey of 8,000 UK citizens aged over 50 found retirees liked these reasons best for choosing a retirement location:
- Good healthcare (87%)
- Strong transport links (78%)
- Friendly neighbours (77%)
- Low crime rate (73%)
- Access to leisure facilities (40%)
- A good social scene (33%)
- To be close to good pubs (10%)
Whether Australians would swap out pubs for cafes is up for debate, but it’s fair to say that a buzzy place to go to on your own or meet up with friends is high on the list.
For homebuyers and investors, there are good opportunities as Australia ages for capital gains from buying into areas offering these features.
Best Places to Retire in Australia
The best retirement locations in Australia are enormously subjective, and highly dependent on your health, hobbies and interests, your budget, and where your friends and family live.
Nevertheless there are a few front runners that tick many of the boxes for older people looking for a great retirement lifestyle.
Noosa, Queensland
Nestled along the stunning Sunshine Coast, Noosa is a prime destination for retirees seeking a laid-back coastal lifestyle. Its pristine beaches, lush national parks, and a bustling dining scene have earned it the title of Australia's "retirement haven."
According to a survey conducted by Domain in 2020, Noosa ranked high on the list of preferred locations for retirees due to its warm climate, healthcare facilities, and vibrant community. The real estate market in Noosa offers a variety of housing options, from modern apartments to luxurious waterfront properties.
Mornington Peninsula, Victoria
Located just an hour's drive from Melbourne, the Mornington Peninsula is a picturesque region known for its breathtaking coastline, vineyards, and charming villages. It’s also the shire with the highest population of older residents in Greater Melbourne.
In 2017 the Mornington Peninsula Shire was accepted into the World Health Organisation’s Global Network for Age-Friendly Cities and Communities.
According to WHO, being part of the network reflects a city’s commitment to listen to the needs of their ageing population, assess and monitor their age-friendliness and work collaboratively with older people and across sectors to create age-friendly physical and social environments.
Mornington’s Positive Ageing Strategy 2020-2025 covers the 8 domains of the WHO’s Age-Friendly Cities framework:
- Transport
- Social Participation
- Respect and Social Inclusion
- Housing
- Communication and Information
- Community Support and Health Services
- Civic Participation and Employment
- Outdoor Spaces and Buildings
Plus, Mornington added:
- Quality of Life (which identifies opportunities to address population health challenges such as obesity, dementia, climate change and post-COVID issues)
The region's real estate market caters to retirees with various housing options, including retirement communities, beachfront housing, and spacious family homes.
Hobart, Tasmania
For retirees seeking a unique blend of history, culture, and natural beauty, Tasmania’s capital Hobart stands out as an excellent choice.
Surrounded by mountains and the picturesque River Derwent, Hobart offers a tranquil atmosphere and a thriving arts and food scene.
Hobart is one of the most affordable capital cities for retirees in Australia, and in 2023 Tasmania extended electricity rebates to more people, including those with a Seniors Card.
With a median house price of $815,000 and units $800,000, Hobart is well under the Sydney median price of around $1,075,000, and provides ample housing choices for retirees to call home.
Buderim, Queensland
Perched on the Sunshine Coast hinterland, Buderim boasts breathtaking views, a pleasant subtropical climate, and a close-knit community. It’s also poised for growth.
Chairman of the REIQ (Real Estate Institute of Queensland) for the Sunshine Coast, Matt Diesel, last year told Savings.com.au Buderim was “smack bang in the middle of everything the Sunshine Coast has on offer” and it had “always been the jewel in the crown for the Sunshine Coast.”
“It’s the perfect blend of tree meets sea and offers an elevated position to capture breezes and great views, making it the true sleeping giant for property here on the Coast,” he says.
Adelaide Hills, South Australia
According to Broadsheet, TripAdvisor named boutique hotel Mt Lofty House in the Adelaide Hills as Australia’s best luxury hotel and best small hotel for 2023.
If it’s good enough for Australia’s best luxury spot, it’s probably an ideal setting for retirees. Renowned for its wineries, farmers' markets, and lush landscapes, this region offers a peaceful retreat from the rat-race.
The Adelaide Hills council has positive ageing programs, and its Age Friendly Community Strategic Plan has 4 goals to support older people to live a fulfilling life in the Adelaide Hills:
- A range of housing in well serviced townships supports people to age in the Adelaide Hills
- Our places and spaces are safe, accessible and welcoming
- Our residents are well informed and well-resourced as they age
- Older people make valued contributions to community life.
Other Great Retirement Locations
We’ve just looked at the tip of the iceberg, and there are many top retirement towns and cities in every state.
According to Australian Seniors, Dr Kim Houghton, chief economist at RAI, Dr Houghton names the usual suspects: the North and South Coast of NSW, Brisbane, the Gold Coast, the Sunshine Coast, as well as Geelong and the Great Ocean Road in Victoria.
As we said before, he makes the point that where people holiday or visit are likely spots to retire to.
“In South Australia, it tends to be a place like Victor Harbor, whereas in Western Australia it’s a little bit north and a little bit south of Perth. Classic sorts of places that people might get to know well as younger folks, and then when they do decide to make that switch, they go to a place they have a bit of a connection to.
“When they move, people typically downsize, or if the house doesn’t get smaller, then at least the value of the house usually gets a bit smaller,” he adds.
Summary
Choosing the perfect location to retire is a decision that requires careful consideration, as it sets the tone for a fulfilling and enjoyable life after work.
Australia offers an array of idyllic destinations that cater to various preferences, from coastal havens to tranquil countryside escapes. As with any significant life decision, it is essential for retirees to visit these locations, explore the communities, and assess the available amenities and services.
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