Retirement villages traditionally offered ‘affordable housing’, developing greenfield horizontal communities on urban fringes and regional areas, stating they will provide a new home for approximately 80% of the cost of a normal home.
However, most new retirement villages are vertical apartment developments in middle ring suburbs, with many challenging the price of a similar apartment across the road from the village.
Land lease communities are rapidly taking up this traditional space of retirement villages.
The graphic above comes from the latest in investor presentation by James Kelly’s Lifestyle Communities, now listed on the stock exchange.
They target ‘the 50% of Australians aged over 50 who have less than $620,000 in total equity’.
Their average new resident has $215,000 in cash in the bank after they buy in, many for the first time, and their ‘service fee’ costs them just 20 to 25% of their pension – plus they get world-class community facilities and a ‘community’of like-minded people.
Lifestyle Communities on their own a building and selling up to 500 home a year.
Is it possible land lease communities are sucking up the spare ‘penetration’ forecast for retirement villages that is predicted over the next few yearts?