By Chancy Quan
Since 2018, over 78,000 Australians have taken advantage of the ‘downsizer superannuation contributions’. This scheme allows people aged 65 and over to contribute up to $300,000 to their super from selling their home.
The Housing Industry Association says this trend reflects a significant number of older Australians considering downsizing.
“Downsizing offers numerous benefits, from reducing household expenses and maintenance responsibilities to freeing up larger homes for younger families,” Executive Director of the Housing Industry Association, Geordan Murray, says.
Melbourne’s western suburbs have over 95,000 people aged 65 years and over, accounting for one in seven of Greater Melbourne’s senior population.
However, many retirees in the West looking to downsize find it difficult to secure a property that truly meets their needs.
Lack of senior-friendly housing
More than half of Australians aged 65 years and over had disability in 2022, with nearly 87 percent experiencing one or more long-term health conditions.
For those with mobility challenges, specific needs for buildings often include stair-free access, wider doors and corridors, ramps, handrails, and unobstructed walkways for wheelchairs and walking frames.
“Many places lack these accessible features, limiting the options available for elderly people to move in,” says Fiona York, Executive Officer of Housing for the Aged Action Group.
“It also means that a house is cool in summer and warm in winter,” she says, highlighting that many homes lack minimum standards for heating and cooling, which puts many at risk during heatwaves.
There are two main housing options for seniors in Australia. The first is public and community housing for those aged 55 and over. The second is retirement housing, including retirement villages and residential parks, which typically offer compact, two-bedroom units with a range of purchase or lease options.
In Melbourne’s western suburbs, public and community housing for those aged 55 and over is available in areas such as Footscray, Laverton, and Williamstown. Additionally, there are retirement villages and residential parks, including Ingenia Federation Sunshine, Burnside Retirement Village, and Avington Living.
“We think retirement villages are a good option, but currently, there are not very strong laws or regulations protecting older residents in these villages. This can lead to problems with contracts, fees, and poor management,” York says.
Many older Australians also express concerns about leaving behind their familiar community connections, friends and families.
“Most suburban housing is designed for larger families, not for couples or individuals seeking to downsize,” Murray says. “This shortage of diverse housing types in established suburbs makes it difficult for older households to find a suitable home without leaving their communities.”
Murray highlights the importance of providing downsizing-friendly options in areas where older Australians already live, rather than in new suburbs or purpose-built retirement communities.
Lack of affordable senior housing
The cost of retirement housing presents another challenge for people looking to downsize, especially for those with limited savings or pension.
For example, at The Village Williamstown, prices for a suitable unit reach $680,000; about 18 per cent higher than Melbourne’s median unit price as of October 2024.
“We think it’s increasingly important for older Victorians to make sure that their options are sustainable in terms of affordability when downsizing,” says Ben Rogers, CEO of Council on the Ageing Victoria.
Rogers is concerned that fewer older westsiders own their homes, with more relying on rentals. “This [renting] is a danger as you get older because it puts you in a more financially precarious position,” he says.
“If you don’t have secure housing, you are not ageing well, and especially in growing communities in the West, we need to make sure that people are financially supported.”
Public and community housing are options for low-income individuals who cannot afford to own a home. However, to be eligible for priority public and community housing, applicants must have less than $13,000 in assets; otherwise, the waitlist is extensive.
In addition, Murray points out another significant financial barrier to downsizing – the stamp duty.
“For many older Australians, the cost of stamp duty can be prohibitive, leading some to stay in larger homes rather than incur these fees,” Murray says.
Needs for language support
The western suburbs are also home to a diverse range of diasporas, with a higher proportion of households speaking a non-English language. The top five languages spoken at home in the West are Vietnamese, Punjabi, Hindi, Mandarin and Arabic.
Language-minority seniors are more likely to feel isolated compared to English-speaking Australians and face the risk of being forgotten.
“Making sure that the housing and aged care services cater to people from diverse backgrounds is important, especially in the western suburbs,” Rogers says. “This way, information reaches those who really need it.”
*If you need housing help, Seniors Rights Victoria is a community legal centre providing bilingual services for multicultural senior groups.
