Thousands of larger homes are sitting half-empty even as buyers compete fiercely for space amid Western Australia’s housing crisis. Freeing up underused properties through downsizing has never been more critical, yet the financial and emotional barriers keeping seniors in place remain stubbornly high, according to industry experts.
Realmark Managing Director John Percudani said the market was stuck in a gridlock, with new supply heavily skewed toward younger buyers and families.
“A healthy housing system depends on genuine choice – options reflecting the different stages people move through in life,” he said. “Many older Western Australians want low-maintenance, well-located homes, yet the supply of appropriate options hasn’t kept pace.
“With 80 per cent of households aged 55-plus being one or two-person households and 85 per cent living with two or more spare bedrooms, according to the realestate.com.au and GemLife Downsizing Australia report, a significant amount of stock remains underutilised.
“In the current market, unlocking even a fraction of this would be hugely impactful, but only if the right options exist for people to move into.”
Mr Percudani said emotional ties, the hassle of moving and stamp duty costs also kept people in place, with the report showing increases in stamp duty reduced housing turnover by about seven per cent.
REIWA President Suzanne Brown said the institute supported practical measures improving housing mobility and had proposed a $10,000 stamp duty concession for downsizers.
“Many seniors want to downsize to more manageable, accessible properties but are deterred by significant stamp duty costs,” she said.
“Our 2025 Housing Issues Survey showed 63 per cent of respondents believed stamp duty was a significant barrier to downsizing, with 71 per cent supporting a concession to help unlock movement within the housing market.
“While there is a cost to apply the concession, the revenue impact for the State Government will be positive due to an increase in overall transactions.”
However, Ms Brown warned incentives would only work if the supply of age-appropriate homes improved.
“We desperately need more options to suit the needs of downsizers,” she said. “Planning reform and measures which streamline development processes will help provide diverse housing choices and encourage people to transition from large homes into well-located, age-appropriate housing.”
Real Estate Buyers Agents Association of Australia WA State Representative Peter Gavalas said a State Government-backed short-term bridging finance fund could help to break the gridlock.
“If I had a dollar for every time I heard a downsizer say they needed to buy before they could sell, I’d be rich,” he said.
“The reality is they often don’t have the money, or they can’t get a loan or bridging finance. They’re stuck and so are the family homes they would otherwise release into the market.
“We simply aren’t building enough new homes quickly enough, particularly in the school zones and the established suburbs families want. This is why downsizers are key.”
Mr Gavalas said a short-term fund would allow downsizers to make offers subject to finance without having to add an uncompetitive subject-to-sale condition.
“This isn’t about handouts – it’s about creating more fluidity in the market,” he said. “Supporting downsizers to move sooner would benefit them, but it would also free up family homes which are badly needed.
“Even if the scheme had just a few hundred places a year, it could make a meaningful difference.”
This article was originally published in The West Australian on Saturday 6 December 2025, written by Keren Bellos.