Melbourne’s most popular suburbs for downsizing and rightsizing in 2024
Downsizers and rightsizers have dominated the new and off the plan apartment market in 2024.
The two camps, downsizers in particular, are the least impacted by the continued high interest rates compared to a first home buyer or investor, positioning them as a key target for developers. Most of the new apartment developments that have come to the market in 2024 have been large apartments that suit the size and budgets of a downsizer.
Many downsizers have built significant equity in their family homes over the years and are now looking to move into more manageable living spaces, while also securing funds for retirement.
But where are downsizers and rightsizers looking to buy?
In this article, we've looked at the most popular suburbs in Melbourne for both buyer demographics, highlighting some of the most popular developments in those areas.
Glen Iris
The leafy Glen Iris, regarded as the geographical centre of Melbourne, is a suburb that, once you live there, you will never want to leave, which makes it an ideal suburb to be developing for downsizers.
The 3146 postcode offers a perfect blend of suburban charm and connectivity to greater Melbourne. It boasts some of the best schools in the city, as well as easy access to the central business district.
Heath Thompson, Director at Projects by Buxton, has sold out several new apartment developments over the years and notes that Glen Iris has long been regarded as one of Melbourne’s top suburbs for families and downsizers.
"You find that those who move to Glen Iris often stay for generations," Thompson says.
"Generally speaking, young families move to Glen Iris to enjoy a family-friendly lifestyle, with some of the best schools and parks in Melbourne. As they approach the empty-nesting phase, these parents often look to downsize locally because soon enough they’ll be grandparents, and their children will likely raise their families in Glen Iris as well. This creates a generational knock-on effect, making Glen Iris a really tight-knit community," Thompson explains.
Thompson has just one apartment remaining in GALERIE, which will be welcoming buyers in the coming months. Downsizers have driven the majority of the sales of the 29 apartments.
Equally popular over 2024 has been Lori, which brings a different lens of downsizing to Glen Iris.
Offering low maintenance townhouses which are due to complete in March 2025, only two homes remain for sale in the development by billionaire Larry Kestelman's LK Property Group.
The three-bedroom townhouses have been designed by Megowan Architecture and feature high ceilings and full-length windows to maximise natural light and provide views of the preserved 100-year-old trees on the site.
The most recently launched new apartment development for downsizers in Glen Iris is Avery, just 24 apartments next door to GALERIE on High Street.
Alta Architecture, embraced the principles of wabi-sabi, a Japanese design philosophy that emphasises natural simplicity and strength.
Alvin Xu from Alta said the aim was to create tranquillity within the busy city environment, integrating natural elements and gardens into indoor living spaces to foster a sense of calm.
Demand for downsizers is expected to continue into 2025, particularly when Time & Place launch their mixed-use project with Woolworths that will see 60 two and three-bedroom apartments developed on Burke Road.
Brighton
Brighton has long been one of Melbourne's bluechip suburbs, with house prices among the highest in the city.
It's another suburb that those who have lived in Brighton for most of their life, don't want to leave. It is also a suburb for the aspirational buyer in the new apartment market. The buyer who can't afford a house in the affluent suburb, but could downsize or rightsize into it.
"Brighton offers one of the best lifestyle offerings in Melbourne," developer Adam Sloane said.
"There’s the beach, the parks, the café culture, cinemas, retail… it has it all."
Sloane is currently developing 111 Carpenter, just seven townhouses near Brighton Station. All seven townhouses are north-facing, and some feature a master bedroom on the third level which overlooks neighbouring rooftops.
Each townhouse has either three or four bedrooms across two of three levels. The open plan living area opens through bifold doors to private landscaped gardens by John Patrick Landscape Architects. Each home has a double garage.
"I knew 111 Carpenter was a fantastic, central site for a townhouse project based on the tree-lined streets, shops, schools and transport which are all at your door," Sloane added.
"It is the ideal spot to base your family and explore all that Bayside has to offer."
Golden Age will try and tap into the more luxury townhouse market in the new year when it launches its high-end development on the former site of Xavier junior school.
They have plans approved for 84 new homes across the 3.3-hectare site at 47 South Road.
Ivanhoe
The north-East Melbourne suburb of Ivanhoe has been starved of new apartments in recent years.
Only a quarter of dwellings are apartments, according to the latest census data.
Alternative investment managers Salter Brothers saw a gap in the market and is currently delivering Candela, strategically located at the entrance of Ivanhoe Village and near to all the community has to offer.
The neighbourhood has a WalkScore of 90 out of 100, ideal for young families and downsizers with access to parks, restaurants, and prestigious schools.
Candela will comprise just 62 one, two, three and four-bedroom apartments designed by John Demos Architects.
In addition to enjoying all the surrounding neighbourhood has to offer, Candela Ivanhoe also includes communal spaces, such as multiple outdoor seating and dining opportunities amid landscaping, an atrium, a wine bar, a providore, and a rooftop garden.
Hampton/Hampton East
Much like Brighton in 2024, new apartment supply in Hampton and its neighbouring Hampton East has been geared toward larger-scale apartments.
Despite Hampton East's population rising above 5,000 from the 2016 census to the most recently collected census in 2021, the percentage share of apartments declined.
Chad Arbid Projects Director Chad Arbid said it's no wonder Channel 9 chose Charming St in Hampton East to film The Block in 2023.
"Hampton East is an affordable Bayside suburb known for parks, the beach, the best schools, shopping strips – like Hampton St, Bay St and Church St, restaurants and cafes, gyms, golf courses and medical centres - all within easy reach," Arbid says.
Arbid is marketing Casa Tranquila by Marcopolo Property, just around the corner from the five Block houses which sold for suburb record prices last year.
Casa Tranquilla, one street back from the South Road thoroughfare comprises one, two, and three-bedroom apartments.
Wickton was another developer focusing on downsizers and rightsizers at Linacre Rise, next door to Linacre Private Hospital, a consdieration a lot of downsizers have when buying.
Linacre Rise will have 27 apartments, 15 two-bedroom apartments and 12 three-bedroom apartments.
Elsternwick
Elsternwick hasn't typicallly procued apartments that cater for downsizers or rightsizers. Not until design-driven developer Milieu revealed Elsternwick Gardens, its garden community next door to the landmark Rippon Lea Estate.
Milieu leaned into the fact the site no Gordon Street shares the boundary with the heritage-listed gardens that surround the 1880s-built mansion, with a private, secure gate that only future residents of Elsternwick Gardens can access.
Aside from being located next door to Rippon Lea Estate, future Elsternwick Gardens residents will be a short walk from the centre of Elsternwick to the south, with its train station, shopping precinct and range of restaurants and cafes and the vibrant village or Ripponlea Village to the northwest.
The precinct will also include amenities such as health and wellness facilities, a simulation golf area, and for pet care, car washing facilities and hobby workshops, as well as a hospitality offering.
Milieu Managing Director Michael McCormack said Elsternwick Gardens is a once-in-a-generation opportunity.
Also seeing interest from rightsizers and downsizers is the larger apartments at EVA, suited to those who want to be in the heart of the village just 130 metres road from Elsternwick Station.
The large three-bedroom apartments, not common in the local area, are some of the largest Elsternwick has seen.
The completed development by builder-developer Pitard Group was completed in 2023.
