Retirement living is leading the way in construction across the country, according to the latest ANZ/Property Council survey.
That’s ahead of the hotels, industry and office sectors – and despite the survey predicting a major slowdown for the local housing market.
The survey, which was based on responses from over 1,700 property industry professionals collected nationally during June, found that national property confidence index will drop over the next 12 months with a sharp fall expected in housing price gains.
So why is the outlook so bright for retirement villages?
Good news for downsizers
Put simply, the demand is there.
There are around 5.5 million ‘baby boomers’ heading towards retirement across Australia – and they are all going to be looking for homes where they can age in place comfortably.
Just this week, there was this story about the expansion of a not-for-profit retirement village in Kalgoorlie in outback WA, 595km from Perth, which has a waiting list of over 100 people. They only have the funds to build another 49 units at the village – meaning at least half of those people will miss out.
Another retirement village being built in Camden NSW (pictured) on the site of a vacant high school has already sold out its first stage of 30 units – without demolition even having begun.
In the last PwC/Property Council census, occupancy rates for villages were 92 per cent – for many, it’s closer to 95 per cent.
Compare this to the recent data out of the 2016 Census which showed 11.2 per cent of Australian properties were sitting empty, up from 9.8 per cent in 2006.
It’s good news for those of us who will be looking for retirement living options in the future. More demand makes it easier for developers to secure investment – and deliver the kind of homes that we really will want to age in.
