At last. The village sector realises that ‘demand exceeds supply’

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For the past three years residential home prices have been increasing by 5% to 18% per annum in the major capital cities. At the same time village home prices have been rising by 2 to 4%. Why?

It can only be lack of confidence in demand and asking for more money. But demand has been exceeding supply; we are building 2,500 new units a year compared to 5000+ being required to maintain historic penetration at 8% of people aged 75+.

Now the Property Council has made a submission to the Victorian Standing Committee Investigating Retirement Living. In its summary it states:

“Retirement villages cannot be built fast enough to meet demand. As Victoria’s population continues to age, this demand is expected to outstrip supply by more than 30 per cent”.

It estimated that 43,107 Victorians currently live in retirement villages and more are moving into villages at an exponential rate due to the vast social, support, lifestyle and care options that they offer.