Ben Myers, Executive Director of the Retirement Living Council, says retirement village operators have to market the value of their business as the population ages.

“It’s well known that the Australian population is ageing and the number of over 65s is growing at twice the rate of the general population. On this basis alone, the underlying demand for retirement living is strong. Add into this a strong residential real estate market that is encouraging rightsizing, and a growing awareness of the value and benefit of living in a purpose-built age-friendly community, and you get a real coming of age moment for retirement living in Australia,” he said.

“Retirement village operators who have invested in operational capability, and who have used industry standards like the Retirement Living Code of Conduct to focus on operational performance, are likely to better understand risks and be more attractive to potential investors.”

The Retirement Living Council’s 2021 Census, compiled by PwC, showed that the sector is performing well. It found:

• The number of people moving into retirement villages is increasing, with 90% occupancy – up from 87% 12 months earlier;
• Homes in retirement villages are selling quicker, with the time from vacation to settlement dropping from 261 days to 223 days;
• Development supply is increasing, with 10,500 new homes to be built over the next three years, and
• Affordability is increasing, with the average two-bedroom home in a village being 55% of the median house price in the same postcode, down from 67%.

“The big opportunity for all operators is to continue defining and refining the value proposition of living in a purpose-built age-friendly community. Getting this right will really drive demand and unlock significant growth and investment opportunities,” said Ben.

“Care is obviously a critical part of this growth story. There are no easy answers, or straight forward examples that can be copied from overseas, so each operator is having to define, on a village-by-village basis, what an expanded home care system means.”