Why more Australians are downsizing to luxury apartments

There comes a point when a family home can start to feel like a lot of house when the number of occupants change as kids grow up and move out. The bedrooms that were once permanently occupied are used only occasionally, if at all. The backyard still needs maintenance, there’s more cleaning, more upkeep and more responsibility, even though fewer people may now call the property home.

For many Australians, that’s when the idea of downsizing begins to look less like giving something up and more like gaining something back. It’s a choice to have more time, freedom, convenience and financial flexibility. And the opportunity to choose a home that suits the way they want to live now.

Downsizing doesn’t mean retiring from work or stepping back from an active life. You might simply be ready to move on from a large house that has served its purpose exceptionally well.

It’s about finding the right-sized home for the next chapter of your life. So while you might be downsizing your property, you don’t have to downsize your life. In fact being located next to town centres and fringe CBD suburbs creates a whole new way of living, with an abundance of café’s, restaurants, pubs and night life, along with quick access to airports and other transport options.

Why more Australians are downsizing to luxury apartments

Australia’s changing households are creating changing housing needs. Australian Institute of Health and Welfare data shows that many older Australians have considerably more space than they regularly need. Among older Australians living with a spouse or partner, 76% had two or more spare bedrooms, while the figure was 65% for older people living alone.

Those rooms aren’t necessarily wasted. They may accommodate visiting children, grandchildren, friends, hobby spaces or home offices. But eventually, homeowners may start questioning whether maintaining an entire freestanding property remains the best use of their time and money.

ABS research has also found that wanting a smaller home or downsizing is an important reason older Australians move, demonstrating that this is already an established part of the Australian property journey. Luxury apartments offer one alternative: less property to maintain while retaining the space, comfort, quality and amenities people value.

When is the right time to downsize?

There is no specific age when someone should downsize. Typically it is driven by changing family circumstances. For some, the trigger is children leaving home. For others, it might be the desire to travel more, reduce maintenance, release equity from their property or move closer to family, friends and the places they enjoy.

And downsizing doesn’t necessarily coincide with retirement. Someone working full-time might decide they’d rather spend weekends enjoying their leisure time than maintaining a garden and large property. Another homeowner might downsize years after retiring.

Instead of asking “Am I old enough to downsize?”, homeowners are more likely to be asking “Does my current home still suit the way I want to live?”.

The benefits of downsizing your property

Downsizing can create benefits that extend well beyond having fewer rooms. A lower-maintenance property can provide more freedom to travel and less time spent cleaning, gardening or arranging repairs. Apartment living may also offer greater security and lock-up-and-leave convenience.

There can be financial considerations too. Selling a larger family property may release equity, while eligible Australians aged 55 and over can currently make a downsizer contribution of up to $300,000 from the proceeds of selling an eligible home into their superannuation. Couples may potentially contribute up to $300,000 each, subject to eligibility requirements. Anyone considering the financial implications of downsizing should seek appropriate financial and taxation advice for their individual circumstances.

For many people, financial considerations are not the main driver of the decision to downsize. They are focused on how they want to spend their time.

How to downsize from a house to an apartment

Before any plans are made to sell and move, downsizers need to consider what they genuinely want from their next home.

• How many bedrooms are needed?
• Do you expect to host visitors, guests or grandchildren?
• Do you work from home?
• How much do you entertain at home?
• Do you need a lot of space for storage?
• Would a generous terrace provide adequate outdoor space?
• Do you have pets?

Contemporary apartments provide significantly more choice than many downsizers may expect, including expansive multi-bedroom residences with substantial living spaces, work areas and outdoor terraces with stunning views.

Shared on-site amenities can extend the home further, providing landscaped gardens, pools, gyms, wellness facilities, dedicated workspaces, libraries, entertaining areas and other spaces without requiring residents to maintain them individually.

As Anthony Falas, Head of Sales at TOGA, explains:
“Many downsizers aren’t looking for a small home. They still want generous living spaces, room for family and friends and exceptional quality. What they’re often looking to leave behind is the maintenance and responsibility that comes with a large freestanding property.”

Practical tips for downsizing to an apartment

A successful move starts well before moving day. Think first about how you use your current home, the furniture you have and the items you own that you genuinely love (rather than just what you have accumulated over many years). Then assess prospective apartments against those needs.

Look closely at storage, natural light, floorplan, accessibility, parking and private outdoor areas. Consider how easily furniture will fit and whether there are flexible spaces for guests, work or hobbies.

Don’t stop at the apartment door. Look around your prospective new neighbourhood and assess transport options and access to parks, cafés, restaurants, healthcare, shopping and proximity to family and friends. These are the things that have an enormous impact on day-to-day life.

If you need to commute to work one or more days a week, check for handy transport options that might include the new Metro, light rail or buses for fast access to Sydney CBD or North Sydney.

The goal isn’t simply to find a smaller property, it’s to find a home and neighbourhood that make life easier and more enjoyable.

Why empty nesters are choosing luxury apartment living

The departure of children from the family home is often the first time homeowners seriously reconsider how much space they need. But empty nesters may still want plenty of it.

Children come home, grandchildren stay during school holidays and friends visit. People work, host dinner parties, exercise, entertain and pursue personal hobbies at home.

Luxury apartment living can be particularly appealing because it can accommodate all these needs and more. Generous living spaces and up to four bedrooms can be combined with private outdoor areas and shared amenities, providing comfort without many of the maintenance responsibilities of a standalone house.

The result isn’t necessarily a dramatic reduction in lifestyle. On the contrary, it can be an upgrade in how easily that lifestyle is enjoyed.

Low-maintenance retirement living: A smarter way to live

Retirement can provide more freedom over how time is spent, making a high-maintenance property feel increasingly at odds with the lifestyle people want.

But low-maintenance retirement living doesn’t necessarily mean moving into a community designed only for retirees.

Many retirees prefer a luxury apartment within a diverse neighbourhood where they remain connected to people of different ages and life stages, local businesses, restaurants, parks, transport and a wider community.

For those buyers, this means having a home that requires less attention and effort while they get on with living their life.

Downsizing for retirees: What to consider before you move

Retirees considering downsizing should look beyond their immediate needs. Accessibility may become important as time goes on, so consider lift access, stairs, bathrooms, parking and how easily everyday services can be reached.

Location matters too. Proximity to healthcare, transport, shops, family, recreation and social networks can contribute significantly to long-term liveability. Quality and flexibility should also be considered.

As Paul Shaw, Executive General Manager, Development & Construction at TOGA, explains:
“Australia’s housing needs are changing as our population and households evolve. That creates an opportunity for developers to provide greater choice. Apartments are not simply smaller homes, but high-quality residences designed around how people want to live through different stages of life.”

That long-term thinking matters because the right downsizing decision should ideally provide a home people can enjoy for many years.

Luxury retirement living in Sydney: What buyers should look for

Luxury retirement living means different things to different people. For some, it’s beautiful architecture, generous spaces and exceptional finishes. For others, it’s being able to walk to a favourite café, having green space nearby, travelling without worrying about the house or living closer to children and grandchildren.

For many, it’s all those things together. When considering luxury apartments for retirement, look at the entire lifestyle rather than simply the residence. Consider security, accessibility and maintenance alongside shared amenities, surrounding green spaces, transport connections and the character of the neighbourhood.

Because luxury isn’t just about what you own, but also how easily you’re able to enjoy it.

Explore luxury apartments for sale in Sydney by TOGA

TOGA’s residential developments are designed around the diverse ways people want to live, combining quality architecture and construction with thoughtfully designed spaces, amenities and connected neighbourhoods.

For people considering downsizing, that can mean choosing a home that retains the qualities they love about their current lifestyle while leaving behind some of the responsibilities they no longer want.

Because downsizing doesn’t have to mean giving up the things you’ve worked hard to enjoy. For many Australians, it’s simply about having less to look after, and more time to enjoy what comes next.

FAQs about downsizing to a luxury apartment

When is the right time to downsize? There is no ideal age. Downsizing may make sense when your current property no longer suits your lifestyle, whether because of maintenance, unused space, travel plans, financial priorities or simply a desire to live differently.

Does downsizing mean moving to a much smaller home? Not necessarily. Luxury apartments can include multiple bedrooms, generous living and entertaining areas, workspaces, private outdoor spaces and extensive shared amenities.

Do I need to be retired to make a downsizer contribution to super? No. Eligibility is based on criteria including age and the sale of an eligible property rather than employment or retirement status. Seek financial advice to determine how the rules apply to you.

What should I look for when downsizing to an apartment? Consider floorplan, storage, accessibility, security, outdoor space and amenities alongside the surrounding neighbourhood, transport, healthcare and proximity to family, friends and the activities you enjoy.

At a glance

What to consider when downsizing to an apartment

• The space you genuinely need for everyday living
• Extra bedrooms or flexible areas for family, guests and work
• Less maintenance without compromising on quality
• Storage for the belongings that matter
• Private outdoor areas and shared green spaces
• Security and lock-up-and-leave convenience
• Accessibility now and into the future
• Proximity to family, friends, healthcare and essential services
• Access to transport options including Metro, light rail, buses and the airport
• Easy access to cafés, dining, recreation and shopping
• Pet-friendly developments