Downsizers in the Box Seat as Strong Demand Meets Tight Supply

Leading real estate group Raine & Horne says that Australia’s tight property market continues to present exceptional opportunities for downsizers.

Research group Cotality reports that national listings are 14.8% lower than October 2024, and 18.3% below the average for this time of year.

However, fresh momentum is emerging, which could prompt downsizers who’ve been sitting on the sidelines to take action.

Raine & Horne data reveals an 8.7% increase in listings between September and October 2025.

Buyer activity also remains strong, with open home attendances 10% higher, on average, in October 2025 compared to September 2025, and slightly higher on an annual basis.

Mr Angus Raine, Executive Chairman of the Raine & Horne Group, said, “The 8.7% rise in listings seen in October signals that the smart money is already on the move, and Raine & Horne sales agents across the country report renewed vendor confidence as we head into summer.

“The 10% surge in attendance at Raine & Horne Open for Inspections nationally is being driven, in part, by the Home Guarantee Scheme, which was expanded to include all first-home buyers from 1 October.

“However, the increase in first-home buyer activity is having a ripple effect that is extending beyond entry-level properties, and helping to drive prices higher across the broader market as established home owners look to upgrade to their second, or third, properties.

“The uptick in demand for properties more broadly is giving downsizers a window of opportunity to secure an outstanding price for their home and maximise the profit on sale.

Data from Cotality confirms that the current market is very much skewed in favour of sellers, with the national median vendor discount rate reaching its lowest level in more than 3.5 years at 3.1%.

Over-55s urged to cash in on downsizer super contribution

Mr Raine is reminding Australia’s over-55s that downsizers can use profits on the sale of their home to boost their superannuation tax-free by as much as $600,000 for a couple.

“The downsizer super contribution is possibly Australia’s best-kept superannuation secret,” said Mr Raine.

“By taking advantage of the downsizer contribution, Australians aged 55 and over can contribute tax-free up to $300,000 (singles) or $600,000 per couple from the sale of their home into super.

"That sort of money, in super’s very low tax environment, can make a significant difference to the quality of a downsizer’s retirement lifestyle,” concluded Mr Raine.