Fresh data from Apartments & Developments shows that downsizers were the strongest buyer segment for off the plan apartments in the last quarter, leading enquiry ahead of other owner-occupiers, with first-home buyers trailing well behind.

However the idea of the downsizer boomer as being cashed up and ready to flex their finances isn't always the reality. The downsizer could actually be Australia's new Aussie battler.

Know the news with the 7NEWS app: Download today

View.com.au Finance Expert Jessica Brady says that for many Australians at retirement age, downsizing is less a choice than a necessity.

Brady said: "Vanguard's How Australia Retires research found that only 7 percent of retirees see their family home as a source of retirement funding - either through equity release, reverse mortgages or selling. For most, the family home isn't just a financial asset. It's their sense of stability, security, community and their legacy to support the next generation."

"Carrying debt into retirement without a doubt adds additional financial stress at a time that's supposed to feel secure and free. Repayments eat into superannuation and pensions. Interest rate changes can cannibalise cashflow. And unexpected costs - from medical needs to home repairs - suddenly feel much heavier when there's less room to move."

"Vanguard's How Australia Retires research found that nearly 1 in 5 retirees are renting, almost 1 in 3 working Australians expect to carry mortgage debt into retirement, 1 in 2 Australians don't know if their money will last and 40 percent have no clear retirement plan.

"There's even a new term for anxiety: FORO - The Fear Of Running Out."

READ: Retiring with a mortgage: The new reality for many Australians

The Federal Government's Downsizer Contribution Scheme, lets Australians aged 55+ tip up to $300,000 each (or $600,000 per couple) from the sale of their home into superannuation, outside normal caps.

Since the eligibility age was lowered from 60 to 55, participation has surged, with over 80,000 Australians contributing $20 billion into super from downsizing since 2018.

For many, the move makes financial sense and helps alleviate the stress of carrying debt into retirement.

Super earnings are taxed at just 15 percent, compared to marginal rates outside of super, with further tax breaks once the funds shift into the pension phase.

Tax concessions apply to off-the-plan purchases often attracting stamp duty discounts or deferrals and of course apartments are generally lower maintenance which appeals to retirees seeking simplicity, security, and lifestyle upgrades.

Elizabeth, who asked that her real name not be used for confidentiality reasons, moved to a two bedroom unit in Newport, Victoria with her disabled adult son after downsizing from the family home in Point Cook to try to be mortgage free and save for ongoing medical costs in retirement.

"I raised our kids in that house for more than 30 years, but the mortgage hangover and the cost of medical expenses and everything else just caught up with me."

"Downsizing to a unit was about making sure I could actually afford retirement, and still look after my son."

One of the benefits for Elizabeth and her son, is that despite moving suburbs they are still relatively close to their Greek community in Point Cook (less than a 20 minute drive).

A recent study by Government of Western Australia Department of Communities found that like Elizabeth, most elderly people want to remain in communities they know but struggle to find affordable homes that suit their needs as they age. They also want to access support services in their home to avoid or delay moving into residential aged care.

The Apartments and Development's research supported these findings showing that the majority of enquiry was initiated by those currently living in or near to the suburb they were looking to move to.

Property buyers in the top three postcodes of Melbourne (3000), Sydney (2000) and Surfer's Paradise (4217) were enquiring about developments in Docklands (Vic), Barangaroo (NSW) and Palm Beach (Qld), suggesting that buyers are keen to age in place, but in a community they are familiar with and in a low maintenance apartment which is more suitable for their needs as they age.

The downsizer contribution scheme isn't the only benefit that makes buying off the plan attractive.

Investor interest also edged higher to 18 percent, while the "just looking" segment contracted to 14 percent, suggesting a modest shift toward more engaged, purchase-ready buyers.

For those that are looking to use funds for investment purposes there are numerous depreciation benefits in buying off the plan, where buyers can claim deductions on the building and fixtures, offsetting taxable income.

The Apartments & Developments report shows that budgets of $500k - $1 million accounted for 75 per cent of sales, reflecting both rising property prices and a limited supply of stock at this price point nationally.

According to Cotality (formerly CoreLogic), national dwelling values are now eight times household incomes, making Australia one of the priciest property markets in the world.

The share of first-home buyers in lending figures has fallen to just 13 percent nationally, and as low as 8 percent in NSW.

Many first home buyers are now looking to softer regional markets or fringe suburbs for affordability, while downsizers and investors dominate city markets.

It would seem that for downsizers, superannuation incentives and tax breaks are steering the off-the-plan market when it comes to buying apartments as an option to decrease debt in retirement.

Meanwhile, first-home buyers are increasingly forced to the sidelines as they struggle to climb onto the property ladder.

Use these tools to help you make confident financial decisions about your property journey.