One of the most significant trends in the Australian property market is the ageing profile of property owners. This will have major implications for property investors as it will shape the types of properties most in demand from property buyers. The average age of the Australian population has risen by 10 years since 1970 and is forecast to keep increasing at a similar rate till at least 2050. According to Census data, one in six Australians are now aged over 65, “compared to one in seven in 2011, and only one in 25 in 1911”, the ABS reports. This can be attributed to relatively low birth rates and the ageing of the post-WW2 baby boomer, due to heightened quality of life and increased health services across the country resulting in longer life expectancy. The ‘Australia’s growth in households and house prices’ study, led by ANU economist Creina Day reveals that “Current retirees, who are healthier and wealthier than their predecessors, tend not to liquidate housing wealth for general consumption because they prefer to remain in their own home as long as possible”, which is likely to push property prices higher in the medium term. Additionally, fewer people are entering retirement villages and aged care facilities. Currently only 25 per cent of people over the age of 85 reside within some form of non-private dwelling which is in stark contrast to the figure of 1991, where around 40 per cent of people were. Evidently, property trends are evolving, diverging away from intergenerational homes. There are now more people downsizing living in units and townhouses, and more people living alone. Since 1911, the average number of people per household has dropped by approximately 2. As households shrink, there will be an increased demand for housing, particularly developments close to major cities and their current residence. Property investors have been capitalising on evolving trends such as land and construction packages, bulk negotiations on properties, and apartments in greater numbers in recent years, especially within Australia’s major cities. Residential property will remain an integral instrument to grow wealth effectively. To understand how you can grow your wealth and invest your money successfully contact Richman Property Investors for a free one-on-one strategy and advisory consultation.