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 Sydney for both buyer demographics, highlighting some of the most popular developments in those areas.

Crows Nest

Crows Nest has attracted a wide range of apartment buyers over the past three months, especially following the launch of two of Sydney’s most in-demand developments near, and above, the newly opened Metro station.

Apartments in Elevate Hume Place, the apartment development by Third.i and joint venture partner Phoenix Property Investors above the Crows Nest Metro Station, have been snapped up since they hit the market.

Designed by Woods Bagot, Elevate will comprise 130 one, two and three and four-bedroom apartments, the larger apartments proving popular with the next home buyer demographic given the connectivity to the city and the growing lifestyle on offer locally.

 TWT Property Group also has recently revealed The Collective nearby, on the fringe of Crows Nest village and a short walk from the metro.

Locals have driven the sales in the first building of what will be a multi-stage precinct with extensive retail and hospitality spaces.

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The Weekly SOURCE looks back at the past 12 months in the community living sector.

With its momentum hampered by high interest rates, the retirement living sector in October came under attack from the ABC, aided and abetted by Centre Alliance Federal MP Rebekha Sharkie and the Housing Aged Action Group.  

The national broadcaster also walloped Lifestyle Communities in July with unproven allegations and as its share value plunged over 50% in YTD, co-founder and Managing Director James Kelly announced his retirement and people cancelled their home purchases.

Billions more dollars have also been invested into the over 55s land lease lifestyle communities with one CEO jumping from being the pioneer of land lease to lifting the profile of seniors’ rental communities.

See Ian Horswill’s recap of the year below.

May

• A first look at the Care Hub at RetireAustralia’s The Verge Retirement Village at Burleigh on the Gold Coast, which opened the following month, was the most talked about innovation in retirement living.
• Jim Hazel was inducted into the Property Council of Australia’s Property Hall of Fame at a gala dinner at the Great Hall in Parliament House in Canberra.
• Cameron Taylor, who resigned as CEO of Eureka Group Holdings in July 2023, is the new CEO of Sundale, the Sunshine Coast-based Not For Profit organisation which has been without a CEO since February.  
• With construction costs soaring, Third.i said it needs 36 extra apartments from City of Newcastle to make Merewether village, a joint venture between ThirdAge and Merewether Golf Club, commercially viable.
• New WA land lease entrant Everland Communities, which is part of Yolk Property Group, said its first community Arbour Margaret River would see residents from the LLC sharing community facilities with their adjacent masterplanned community.
• The Queensland Government passed the Manufactured Homes (Residential Parks) Amendment Bill 2024, providing significant protections across 203 residential land lease communities. Park owners are given 12 months to instigate the wide-ranging changes.

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With construction set to begin in early 2025, The Merewether Residences, will disrupt traditional stereotypes of retirement living, blending high-end design with community- focused amenities for active retirees.

The over-55s retirement village reflects the personal vision of Third.i’s founders, who sought to create a community they would be proud to offer their own families.

“We wanted to develop retirement homes that we’d be delighted to have our own parents live in,” said co-founder Luke Berry.

“The project has gone through a few challenges to get to this stage but now we’re able to move ahead on creating something that will never be replicated in the region; it’s such a rare opportunity.”

LUXURY MEETS COMMUNITY AT THE MEREWETHER RESIDENCES

Following several planning approvals since 2021, construction is set to begin in early 2025, with completion anticipated in 2027.

The Merewether Residences will boast 178 one, two and three-bedroom upscale apartments overlooking the golf course, as well as a suite of resort-style facilities. These include a health and wellness centre, a cinema, and a newly constructed clubhouse for the golf club. Designed to accommodate over 300 residents, the project seamlessly integrates luxury with an active lifestyle.

The development, initially conceptualised by Marchese Partners and now helmed by EJE Architecture, embraces a design ethos centred on light-filled, spacious apartments that cater to a new generation of retirees’ desire for luxury living and activity.

“Today’s retirees aren’t ready to slow down,” Berry explained.

“They’re looking for communities where they can golf, dine, and socialise, all while living in comfort. Which is why we have named our retirement division ‘Third Age’.”

Local interest in the project has been strong, with many downsizers from Newcastle and even Sydney expressing enthusiasm for the development.

REDEFINING RETIREMENT IN NEWCASTLE

The Merewether Residences represent a bold step forward for Third.i and the senior living industry at large. With its blend of luxury, community, and innovative design, the project sets a new benchmark for retirement living, catering to the evolving needs of today’s retirees.

“Now we’re able to move ahead on creating something that will never be replicated in the region; it’s such a rare opportunity”

Despite an interest rate cut not materializing in 2024 as many had anticipated at the start of the year, first home buyers appear content to enter the Sydney off the plan apartment market, somewhat reassured that rates are unlikely to rise in the short to medium term.

Data collected by MatterFact showed that first home buyers made up over 60 percent of enquiries in 2024 across New South Wales on Urban.com.au, driven by more affordable stock coming to market outside the city, particularly in and around suburbs along the recently opened Metro line.

Speaking with first home buyers across Sydney in 2024, the main driver of their purchase is the ability to afford the deposit, having saved up while living at home. However, many feel they are not yet ready to take on a mortgage. They are looking to enter the property market but aren’t prepared to begin repayments just yet, so they’re opting to buy into new developments at the earliest possible stage, knowing that the construction period will likely be at least two years, by which time they will be better positioned to begin repayments.

In this article, we explore the most popular suburbs in Sydney for first home buyers in 2024, highlighting some of the most sought-after developments in these areas.

Crows Nest 

Another suburb to benefit from the metro boom is Crows Nest.

Previously relying on heading to the neighbouring St Leonards for a train, Crows Nest is now just minutes from the centre of Sydney on the metro, which is drawing first home buyers.

One of the most popular projects for the year, and it only launched a few months ago, is Elevate Hume Place, the apartment development being delivered literally above the Crows Nest Metro Station.

Third.i, and joint venture partner Phoenix Property Investors, have seen a great response to the 130 one, two and three-bedroom apartments that have been designed by Woods Bagot.

One-bedroom apartments, which are under $1 million, are being seen as a great investment given the rarity of a TOD (Transit Oriented Development) so close to the city, one which isn’t easily repeatable.

Not just first home buyers, but any buyer at Elevate can buy an apartment with just a $10,000 deposit, rather than the standard 10 per cent.

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Time is ticking for homebuyers wanting to get their foot in the door of the Elevate Hume Place development, with multiple apartments sold at launch to both local and international buyers.

Positioned strategically above the newly opened Crows Nest Metro Station, Elevate Hume Place by developer Third.i Group, alongside joint venture partner Phoenix Property Investors, generated significant interest from both local and international buyers.

Designed by Woods Bagot, Elevate Hume Place features 130 one-, two-, and three-bedroom apartments that combine modern aesthetics with convenience providing residents with seamless access to Sydney’s CBD in just seven minutes and Chatswood in four minutes, making it one of the most connected addresses in Sydney.

Third.i co-founder Luke Berry said the project has received over 6,000 leads with over 400 appointments to date, with this unprecedented demand and strong interest not only reflecting the quality of the apartments but also the increasing demand for convenient, transit-oriented living in Sydney’s dynamic real estate market.

“We are thrilled with the strong sales results at launch for Elevate Hume Place, this achievement highlights the growing appetite for contemporary living that prioritises accessibility and connectivity,” Luke said. 

“The design, amenities, demographic, and prime location of Elevate Hume Place have attracted a diverse range of local and international buyers, from young professionals and first home buyers to investors and downsizers, all seeking the perfect blend of urban convenience and community charm.”

JLL’s head of residential project sales Australia Freya Watson said the development’s position to the Sydney Metro was a massive drawcard.

“Properties near metro stations often achieve a 20-30% price premium and attract high rental demand, which has contributed to the strong buyer interest,” Freya said.

Among the international buyers, 25% were seeking residences for their children studying in Sydney and another 25% comprising Australian passport holders or permanent residents looking for personal stays. The remaining 50% are investment-driven buyers, predominantly from Singapore and Hong Kong, drawn by the project’s strong rental returns potential.

“The Metro is a huge draw for buyers, especially those who value or are accustomed to the convenience of public transport, with its prime location and quick access to the CBD,” said Freya.

“The city views are also a major attraction, along with the abundance of schools and universities right on the doorstep.”

Elevate Hume Place buyers will experience a perfect blend of connectivity, community, and the vibrant lifestyle that Crows Nest offers.

“In addition to direct metro access, residents will benefit from being close to Crows Nest Village, which provides a variety of lifestyle amenities,” Luke said.

“The overwhelming interest underscores the demand for transit-oriented developments in Sydney, and we are proud to fulfil this need with Elevate Hume Place. 

“We encourage interested buyers to act swiftly.”

A limited number of residences remain available at Elevate Hume Place, with prices starting from $970,000 to $12 million.

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Elevate Hume Place, the new apartment development above Crows Nest Metro by developer Third.i and joint venture partner Phoenix Property Investors, has raced to 50 per cent sold.

Both local and international buyers have driven the sales of one of the most popular transit-oriented developments in Sydney, above the newly opened metro that will connect future Elevate residents to the rest of Sydney in minutes.

Designed by Woods Bagot, Elevate Hume Place comprises 130 one, two, and three-bedroom apartments.

Third.i Co-Founder Luke Berry said the project has received over 6,000 leads with over 400 appointments to date, with this unprecedented demand and strong interest not only reflecting the quality of the apartments but also the increasing demand for convenient, transit-oriented living in Sydney’s dynamic real estate market.

“With over 50 per cent of Elevate Hume Place sold, this achievement highlights the growing appetite for contemporary living that prioritises accessibility and connectivity,” Berry stated.

“The design, amenities, demographic, and prime location of Elevate Hume Place have attracted a diverse range of local and international buyers, from young professionals and first home buyers to investors and downsizers, all seeking the perfect blend of urban convenience and community charm.”

Freya Watson, JLL’s Head of Residential Project Sales Australia – the sales partner for Elevate Hume Place – shared insights into the diverse range of buyers the development has attracted.

“Elevate Hume Place sets a new standard for transit-oriented living, appealing to both owner-occupiers and investors. Properties near metro stations often achieve a 20-30 per cent price premium and attract high rental demand, which has contributed to the strong buyer interest. Buyers clearly recognise the long-term potential of this development.”

A significant portion of the buyer interest has come from Asia.

Among these international buyers, 25% are seeking residences for their children studying in Sydney, while another 25% are Australian passport holders or permanent residents looking for personal stays. The remaining 50% are investment-driven buyers, primarily from Singapore and Hong Kong, attracted by the project’s strong rental return potential.

“The Metro is a huge draw for buyers, especially those who value or are accustomed to the convenience of public transport, with its prime location and quick access to the CBD,” Watson added.

“The city views are also a major attraction, along with the abundance of schools and universities right on the doorstep.”

Berry says Elevate Hume Place buyers will experience a perfect blend of connectivity, community, and the vibrant lifestyle that Crows Nest offers.

“Elevate features shared spaces that promote community interaction, iconic Sydney views, and sustainable design elements. The thoughtfully designed apartments foster a meaningful connection to the natural surroundings while honouring the site’s rich history. In addition to direct metro access, residents will benefit from being close to Crows Nest Village, which provides a variety of lifestyle amenities.”

Prices at Elevate start from $970,000.

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In May this year, The Weekly SOURCE reported a 50% increase in construction costs over two years had forced Third.i to take its approved development at Merewether Golf Club  back to the City of Newcastle with new plans. 

Third.i sought 36 extra apartments and have been successful and has now announced it has appointed a building partner for the project. It has a new funding partner on board.  

Co-Founder Luke Berry said, in a prepared media release, after some delays for the development, which was first approved by state planning authorities in 2021, said the company was excited to get started on The Merewether Residences, which will have 178 two- and three-bedroom apartments overlooking the golf course, a health and wellness space and cinema. 

The Merewether is a shared vision between Third.i’s retirement living division, ThirdAge Villages, and Merewether Golf Club. It was designed by architect Eugene Marchese from Marchese Partners I Life3A. The architectural oversight has transitioned to EJE Architecture. 

Construction is set to begin in the first quarter of 2025 and the expected completion date is 2027. 

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Sydney developer Third.i and joint-venture partners Phoenix Property Investors have been granted consent by the Sydney Metro for their Hume Place over-station development. 

Designed by Woods Bagot, Stage 1 of the project over the Crows Nest Station, dubbed Elevate, consists of 130 apartments.

Stage 2 of the project will offer 476 one, two and three-bedroom apartments and operate as a build-to-rent project and includes 60 affordable apartments.

Amenities for Stage 2 announced late last month include a health and wellness centre, golf simulator, co-working space, cinema, rooftop bar, pool, and music rooms.

Third.i and PPI will team up with community housing provider Evolve Housing to manage the project, offering one full tower of Site A as affordable housing in perpetuity.

Third.i and PPI was granted Stage 1 approval for the Metro Precinct development for sites A and B, before amending the concept State Significant Development Application (SSDA) for Site A for mixed-use, which includes affordable and private housing, retail and commercial floor space.

The amended plan, which was approved by Sydney Metro, includes 15 per cent, or $100 million worth, of accommodation for frontline workers at the nearby Royal North Shore and Mater hospitals.

The amended concept SSDA is compliant with the transit-oriented development rezoning proposal for Crows Nest announced earlier this year, which would add 3255 homes in precincts within a 1.2km radius of the Metro station.

Third.i last month said its Stage 1 Elevate project had attracted 300 appointments in its opening weekend, of which 25 per cent were Australian-based buyers, with a skew towards downsizers aged over 55.

Twenty-five per cent of interest was from Asia, and the remaining 50 per cent defined as investors, particularly from Singapore and Hong Kong. 

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When the three founders of leading property development company Third.i established the retirement living division of their business, they kept their own parents in mind.

“We said we wanted to create retirement products that we would be very proud to have our own parents living in,” one of those founders, Luke Berry, says.

“My mum and dad and all of their friends worked hard in their lives,” he said. “And I think we owe it to that generation to create something that is truly exceptional. So our goal was to build beautifully-designed, high quality apartments, combined with the kind of incredible retirement village amenity that today’s retirees are looking for.”

Now, ten years later, the company is preparing to begin construction on what will be the flagship development in its retirement living vision – The Merewether Residences at the Merewether Golf Club in Newcastle.

Third.i has announced it has now appointed a building partner for the project and has a new funding partner on board – both of which will be unveiled at a celebration event at the Merewether Golf Course on November 28. Construction is set to begin in the first quarter of 2025 and the expected completion date is 2027.

Mr Berry said that after some delays for the development, which was first approved by state planning authorities in 2021, the company was excited to get started on this landmark luxury over-55s concept.

“It is very exciting for us and everyone involved,” he said. “The project has gone through a few challenges to get to this stage but now we’re able to move ahead on creating something that will never be replicated in the region, it’s such a rare opportunity.

“It’s a once in a generation project and now we have a clear pathway to completion.”

The project includes the residential development, The Merewether Residences, that’s integrated with the existing golf course. It will comprise 178 luxury apartments overlooking the golf course, extensive amenities – including a health and wellness space and cinema, and a new Merewether Golf Club club house. It all comes together to create a resort-style lifestyle for the community of more than 300 residents who’ll be living there.

The Merewether is a shared vision between Third.i’s retirement living division, called ThirdAge Villages, and the Merewether Golf Club. It was designed by architect Eugene Marchese from Marchese Partners, a leading expert on creating over-55s communities that make life easier, more enjoyable and more fulfilling for their residents. The architectural oversight has since transitioned to the multi award-winning EJE Architecture, which has taken the lead on the ambitious project.

Mr Berry said the whole concept is aimed at helping people who are either approaching or in their retirement to transition into their “third age”.

“That’s why we called our retirement division Third Age because we want to design these communities that are reflective of the new retiree that isn’t ready to slow down – they just want to live a little more comfortably,” he said.

“The reality is retirees today want to be active. They want to play golf, and want to be out enjoying good food and wine, they want to right-size into a home that’s going to be suitable for them for the next stage of their life – their third age – but without having to compromise on anything.

“So we’re building beautiful, high-quality, generously-sized apartments but combined with the retirement village amenities and the amazing connection to the golf club which is going to have food and beverage.

“These aren’t people who are just going to go into our apartments and sit and watch the day go by. They’re on a golf course, they’re surrounded by a beautiful green sanctuary and with people who are out enjoying the spaces and the amenities – young people meeting for afternoon drinks in the bar, families celebrating a birthday at the restaurant, people catching up with friends.

“It’s set up so you can easily engage with that community and that energy when you want to but at the same time the living is also far enough away, in this lovely environment, so you can slow down and relax when you want to.”

Mr Berry said the current purchasers of the three, two and one bedroom apartments are mostly local downsizing Novocastrians but many are also people relocating from Sydney and regional New South Wales.

And among those buyers are his own parents. “My parents are going to live there and a lot of their friends have decided to buy as well,” Mr Berry said.

“We’ve got people moving from Sydney and also a lot of locals who are choosing to retire there. We’ve got a lot of farmers from the middle, west and northwest of New South Wales.

“So we are bringing together a community that’s going to be really interesting, from a lot of different backgrounds who all want to live in this beautiful environment, in a great city.”

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Leading Australian developer Third.i Group, alongside joint venture partner Phoenix Property Investors, is thrilled to announce the successful launch of Stage 1 at Hume Place, named Elevate, which has garnered significant international and local interest since its debut.

With nearly 6,000 leads and over 300 appointments during the opening weekend, the demand for the apartments above the Crows Nest Metro station from both local and overseas buyers is unprecedented due to the unique location offering unparalleled connectivity to Sydney’s CBD. Elevate Hume Place has captured the attention of diverse buyer demographics. 

Notably, 25% of interested buyers from Asia are seeking residences for their children studying in Sydney, while another 25% are Australian passport holders or permanent residents looking for personal stays. The remaining 50% are investment-focused buyers, particularly from Singapore and Hong Kong, drawn to the project’s strong rental returns prospects. Following over 150 appointments with Asian buyers, the Asian roadshow has been extended with three additional events in Hong Kong and Singapore to accommodate the high demand.

In Australia, interest spans a diverse range of buyer demographics, including first-time homebuyers, seasoned investors, and downsizers. The variety of apartment offerings—from one and two-bedroom units to larger three-bedroom options—caters to various needs.

The appeal of the Crows Nest Metro station is a significant draw for both international and local buyers who appreciate the unrivalled connectivity it provides, with the recently opened City & Southwest Metro line placing Crows Nest only seven minutes from Sydney’s CBD and four minutes from Chatswood.

This strategic location not only facilitates seamless commuting but also promotes a vibrant community atmosphere, encouraging pedestrian activity and local engagement. The integration of the Metro system with Hume Place allows residents to enjoy the convenience of urban living while being well-connected to the broader city, making it an ideal choice for those seeking both lifestyle and accessibility.

“We have been overwhelmed with interest for Elevate Hume Place, with 6,000 leads so far and around 300 groups visiting the display suite on our opening weekend alone.”

“This remarkable interest underscores the demand for quality living spaces that offer exceptional connectivity, particularly with the Crows Nest Metro station providing direct access to the CBD in just seven minutes. The combination of stunning architecture and the convenience of urban living has truly resonated with both local and international buyers.” Said Luke Berry, Co-founder & Director of Third.i Group. 

Plans for Stage 2 to be delivered as a build-to-rent offering have been announced by Third.i and Phoenix Property Investors, with Cushman & Wakefield appointed to sell the completed build-to-rent asset which will comprise circa 476 apartments, including approximately 60 units designated as affordable housing for frontline and key essential healthcare workers. 

The turnkey build-to-rent asset is set to redefine build-to-rent living in Sydney by integrating wellness amenities and communal spaces designed for community connection. The amenities earmarked for Stage 2 include an innovative health & wellness centre, golf simulator, co-working space, cinema, rooftop bar, pool, music rooms, and much more. 

With a limited number of build-to-rent projects in the pipeline in Sydney, Stage 2 at Hume Place is already attracting significant interest from international institutional capital looking to acquire the completed asset. 

According to Josh Cullen, International Director & Head of Capital Markets, Australia and New Zealand at Cushman & Wakefield, the build-to-rent market is becoming increasingly recognised as a vital component in addressing housing shortages and evolving urban needs.

“As cities grow and populations increase, the demand for flexible, high-quality rental options has surged. Build-to-rent developments such as Stage 2 at Hume Place are designed to meet this demand by offering a diverse range of apartment sizes and layouts that cater to various demographics, from young professionals to families and essential workers.”

“Stage 2 at Hume Place is set to become a market-leading build-to-rent asset, generating significant interest both locally and internationally,” said Robert Huxley, Co-founder of Third.i Group.

“Crows Nest stands out as one of Sydney’s most connected locations, thanks to the new Metro station that places residents just seven minutes from the CBD. This exceptional connectivity, combined with the suburb’s affluent demographic and anticipated population
growth, creates a compelling case for a luxury build-to-rent offering. We are witnessing strong demand from investors who recognise the potential for high-quality rental options in this vibrant community.

“As we develop Stage 2, our focus will be on delivering not only stylish and sustainable living spaces but also amenities that foster a sense of community and well-being, ensuring that Hume Place meets the needs of modern urban dwellers,” Mr Huxley concluded.

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