SA is joining other states the compulsory buyback period of village units. It has taken to Parliament legislation that will require village owners to pay out departed residents after 18 months if the unit has not been successfully preoccupied by new tenant or lessee. Other states have as low as six months.

Aged & Community Services SA & NT argued for two years of the Property Council oppose it totally. SA Executive Director Daniel Gannon is quoted in The Advertiser that the buyback policy was “anti-jobs, antigrowth, anti-housing choice, anti-residents and anti-common sense. (It) will smash local operators with a compulsory buyback and make residents’ units worthless, which is bad news for people living in retirement villages”.

Other states have as low as six months buyback but the reality is such requirements and does great damage to smaller independent operators because of the impact on the balance sheet as a liability overhang.