Retirement villages need asset strategy, not just builders: Jolyon Good

Australia’s retirement village sector is entering a new era where refurbishing a vacated unit is no longer simply about replacing carpets and repainting walls.

Good Constructions’ Chief Executive Officer Jolyon Good, said operators need to think like asset managers, making strategic investments that improve competitiveness, increase sale prices and future-proof villages for an ageing customer base.

Speaking during two DCM Institute masterclasses on retirement village reinstatement and refurbishment, Jolyon said the sector was increasingly moving beyond basic reinstatement towards complete refurbishments and, in some cases, reconfiguring homes to better meet modern buyer expectations.

Good Constructions has completed more than 3,000 retirement village refurbishments over the past decade, giving the company a unique insight into how operators can improve both sales performance and resident experience.

“We’re almost a partner in the business, not just a contractor,” Jolyon said.

One of the biggest mistakes village operators make is treating every refurbishment as a stand-alone transaction.

Older village homes no longer meeting modern expectations

Instead, Jolyon said villages should develop consistent specifications, long-term refurbishment strategies and trusted contractor partnerships that deliver predictable pricing, shorter turnaround times and fewer defects.

“Choosing a specialist builder is so important,” he said.

“A retirement village is a live environment. You’re dealing with residents, village managers, sales teams, contractors and operators all at once.”

See an excerpt from the discussion below.

He said experienced retirement village builders understood the unique operating environment, including resident communication, safety requirements and navigating building regulations without unnecessary costs.

Jolyon said many older villages remained in premium locations but were losing buyers because their homes no longer matched modern expectations.

Simple upgrades such as stone benchtops, open-plan kitchens, wider bathrooms and improved accessibility could significantly increase both appeal and resale values.

“Stone is virtually the same price as laminate now,” Jolyon said.

“There’s no reason many older villages can’t compete with newer developments.”

He also expects operators to increasingly undertake full reconfigurations rather than cosmetic refurbishments, particularly as residents move into villages later in life and remain there longer.

Designing for ageing in place

Future-proofing homes for ageing in place is becoming a much bigger consideration.

That includes wider doorways, better bathroom layouts, provision for grab rails, improved power point locations and more functional living spaces.

“We’re definitely seeing more conversations about changing layouts rather than simply replacing finishes,” Jolyon said.

See an excerpt from the discussion below.

Despite global supply chain pressures, Jolyon believes refurbishment costs remain relatively stable, although operators should prepare for modest increases driven largely by fuel surcharges and material costs.

He estimates a typical metropolitan refurbishment generally costs between $85,000 and $100,000, with larger Sydney projects often exceeding $150,000 depending on scope.

For operators, however, speed remains just as important as cost.

Every week a unit sits vacant represents lost revenue, delayed deferred management fees and increased holding costs.

Jolyon argues that the best-performing retirement villages are those that treat refurbishment as a strategic investment rather than simply a maintenance expense.

“These villages are in great locations,” he said.

“If you match what today’s buyers expect, they’ll sell.”

Watch the full webinar below.