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9HowcanGovernmentshelpencouragedownsizingSydneyDownsizingUpdatefromCBREAustraliahoweverhasthelargestaveragehousesizeintheworldataround235squaremetres.VerylargehouseoccupiedbyoneortwopersonsisnotgoingtobeasustainablewaytoincreasehomeownershipinAustralia.Ifrereesmoveoutoflargehousesthisfreesupmorehousingforthenextgeneraonoffamilies.Thedicultyisthatolderpeoplebecomemoreconservaveandarelesslikelytowanttomoveunlessthereareincenvestomove.TheBabyBoomersarendinganumberofreasonstomove.Theseincludethepotenaltorealisecapitaltousefortravelandtosupplementsuperannuaonandpensionpaymentsthedicultyofmaintainingalargehouseandgardenandtheneedtobeclosetoameniesinapostworkperiodtokeepacve.IncomparisontothelargesizeofourhousestheaveragesizeofapartmentsinAustraliaisaround135squaremetresandcurrentapprovalratesinSydneyfornewdwellingsarefavouringapartmentsoverhouses.ThereisclearlyatrendtowardsapartmentlivingbyreringBabyBoomerswhowanttobeclosetorestaurantsandamenies.Thereareanumberofincenvesandencouragementsthatstateandlocalgovernmentscanmaketoencouragedownsizing.1.EliminateStampDutyForRereeDownsizersAsanincenvetoselluptheirlargehomeandpurchaseanapartmenttheNSWGovernmentcouldeliminatestampdutyonsuchtransacons.Thiswouldbeaclearsignalthatdownsizingisencouraged.TheaveragenumberofpeoplelivinginahouseinNSWhasbeenreducingoverrecentyears.Thisispartlyduetotheincreaseinthenumberofoneandtwopersonhouseholdsparcularlyrelatedtotheageingpopulaon.DownsizerstypicallymovetoselltheirfamilyhomeintheirpreferredsurroundingssuchastheNorthShoretoasuburbfocusedmoreonlifestyle-orientatedliving.Wendthereisastrongmarketinmoreauentareasaroundtheinnercityoenndingthatbuyersrelocatetoanapartmentinthecitywhilealsousingtheequityfromtheirhouseandpurchasingalifestylepropertyperhapsacoastal-basedhomeorhobbyfarmtoaddtotheirporolio.2.AllowExtraFloorSpaceInPlanningApprovalsForCommunalAreasInApartmentsPlannedForDownsizersAsolderpeoplelivinginapartmentswillwanttohavecommunalareasandspecialfacilieslikeasmallcinematoosettheirreducedareaanextraoorspacecouldbeallocatedforthisintheplanningsystem.Thedicultywillbeinensuringthatrereedownsizersrepresentacertainpercentageofpurchasersandthatthisisdemonstratedwhentheconstruconcercateisissued.3.CouncilsToIncreaseTheAreaForApartmentsAroundTransportNodesAndTownCentresToProvideForTheRereeDownsizingMarketCouncilsinSydneywillneedtoassesstheageingpopulaonintheirareaandensurethatthereissucientsupplyofsitesforapartmentsingoodlocaonsnearamenies.Thisshouldbeincorporatedintoplanningandageingstrategies.AhouseatFrenchsForrestorsimilarcouldsellfor1000000.Downsizerswouldmostlikelypurchaseanapartmentfor700000to800000.Inlocaonswherehousingpricestendtobelowerpotenaldownsizersmaynothavetheopportunitytopurchaseatwobedroomapartmentandsllretainremainingequity.Thedierenceinpriceoftheoriginalhouseandtheirnewapartmentwouldnotbeasgreatasothermoreauentsuburbs.BecauseofthisitismorecommonforthoselivinginWesternSydneyforexampletoselltheirhouseandrelocatetocoastalareassuchasHerveyBaythataremoreaordablewhenusingtheirequity.Wendthatmanyemptynestersordownsizersarerelyingontheirsuperannuaontopurchaseanapartmenttosupporttheirlifestyle.WiththeGFCandsubsequentlossofvaluethereisagreaterchancethattheywillremainintheirexisnghomeratherthanmakethemovetodownsize.HousingpriceshavebeenreducedinmanyareasaroundSydneyandratherthanselltheirhomeatadiscountedpricepeoplewillnowwaittosellunlthemarketrecoverstothenrealisethatequity.DavidMiltonManagingDirectorResidenalProjectswww.cbre.com.au