A Perth buyer’s agent is calling for a state-backed downsizer fund to help older homeowners move sooner and free up family homes amid Western Australia’s housing supply crisis.
Peter Gavalas (pictured), buyer’s agent at Resolve Property Solutions, said many older homeowners want to move but are trapped by the need to sell before they can buy.
“If I had a dollar for every time I heard a downsizer say they need to buy before they can sell, I’d be rich,” Gavalas 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.”
He proposed a short-term government fund that would allow eligible downsizers to access temporary finance, helping them buy before selling.
“I’m suggesting the government set up a fund that provides temporary support for downsizers who are otherwise financially secure but can’t borrow through traditional channels,” Gavalas said.
“Even if the scheme has just a few hundred places a year, it could make a meaningful difference.”
He added that the fund could operate with strict parameters, such as a maximum three-month term.
“This isn’t about handouts,” Gavalas said. “It’s about creating more fluidity in the market. Supporting downsizers to move sooner would benefit them, but it would also free up family homes that are badly needed.”
According to the latest Cotality data, Perth dwelling values have surged 82.7% in the five years to September 2025, making it the strongest-performing capital city market in Australia.
However, housing supply remains extremely tight. The Real Estate Institute of Western Australia (REIWA) reported that active listings in September were down 29.2% year-on-year, while median selling times fell to eight days for houses and nine days for units – among the fastest in the country.
REIWA president Suzanne Brown said rising prices have offset recent rate cuts, noting that “as prices rise, people have to borrow more to buy a home, and a greater proportion of family income is required to make mortgage repayments.”
WA’s population grew by more than 67,000 people in the year to March 2025, but only 21,846 new dwellings were completed during the same period, according to the Australian Bureau of Statistics (ABS).
Gavalas said this imbalance between housing construction and population growth is fuelling competition and pushing up prices.
“We simply aren’t building enough new homes quickly enough, particularly in the school zones and established suburbs that families want,” he said.
“That’s why downsizers are key. Every time someone moves from a four-bedroom house into something smaller, it creates an opportunity for a family to buy into an area that may otherwise be out of reach.”
The tight conditions reflect continued investor demand and population growth, with Perth’s property market benefiting from record interstate migration into regional WA.
“This influx into regional WA is creating a ripple effect that’s boosting infrastructure development and economic confidence in Perth,” Gavalas said. “As the rest of WA grows, there’s increased demand for goods, services, and housing – all of which support Perth’s property market.”
With over one-third of the population expected to be aged 55 or older by 2050, researchers said encouraging downsizing is vital to easing housing pressures and meeting demographic needs.
The report also found that downsizers are mainly motivated by low-maintenance living and retirement readiness, but financial barriers and lack of suitable housing often hold them back – issues Gavalas believes the proposed fund could help address.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
