Not for profit operators have more villages but the private operators have more ILU’s.

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The big commercial real estate and property consultancy Jones Lang LaSalle has released its latest summary of the makeup of the Australian retirement village market. Their research reveals that the church and charity based not for profit sector has 65% of all villages or 1,070 all up but the private operators have 56% of all ILU’s – meaning that their villages are bigger. Looking forward this may well change as groups like the Salvation Army and Illawarra Retirement Trust in NSW, Blue Care in QLD and Armana Living in WA build big villages. They too identify the potential profitability of the sector and often they have easier access to land, thanks to donations, strong ties to local councils and adjacent property to existing aged care facilities.

Peter McMullen of Jones Lang LaSalle reports that there are nearly 300 new villages totalling 40,000 ILU’s that are proposed, approved or already building. This is an additional 20% more villages and 25% more ILU’s to the 1750 villages that exists today. He also points out that 14% of existing villages have extension plans – this means another 245 villages are building new ILU stock.