New data published by the Association of Superannuation Funds of Australia (ASFA) shows that retirees are making preferential choices to downsize to seaside and riverside towns across the country.

Two locations – the Forster-Tuncurry region, about three hours’ drive north-east of Sydney, and the Echuca-Moama region in Victoria – have been identified as the most popular for retirees in an analysis carried out by acclaimed demographer Bernard Salt.

In Forster-Tuncurry alone, approximately 32% of its 2000-strong population is now made up of retirees over 65.

With a median house price of $553,000, ASFA CEO Dr Martin Fahy said retirees moving to Forster-Tuncurry could liberate significant capital, as the median house price is $650,000 lower than Sydney.

“That is a lot of money that can be used to pay off a mortgage or fund a better retirement lifestyle,” he said.

Other major locations catching the interest of retirees is in Queensland’s Hervey Bay, which has a median house price of $328,000, compared to Brisbane at $552,000. Almost one quarter of the Hervey Bay population is over 65 and no longer in the workforce.

The analysis also pinpointed WA’s Albany and Victor Harbour-Goolwa in South Australia as growing retiree sea change hotspots.

Ulverstone, on Tasmania’s north-coast, was the cheapest coastal hotspot in the analysis, with a median house price of $243,000.