In NZ they clearly identify the 75+ age group as their core market. The average age of entry is 73 and average age of residents is 79. Here in Australia the average age of entry s slightly higher; the average age of residents is also 79 (and higher for some large operators).
This would indicate that Australians are joining villages at the same time and same reasons as in NZ, namely a secure accommodation path given health concerns. (This has been confirmed by our McCrindle Baynes 2011 and 2013 Village Census).
National penetration in 2013 for NZ increased by 0.3% to 10.7% for this 75+ cohort. The Jones Lang LaSalle research sites the growing acceptance of the retirement village concept and believes a penetration rate of 13% is achievable. This would require 47,000 new units to be built over the next 20 years.
(In Australia, villages deliver 8% of the 75+ market and shrinking. To maintain 8% we need to build 5,000 new ILUs each year; in 2013 just 1000 were built).
While 10.7% is enviable, it is nothing compared to the regional distribution. The Bay of Plenty region has 16.4% penetration and Auckland has 12.8% of the 75+ market. Between these two regions they also account for 44% of all NZ village ILUs. This demonstrates that once market acceptance is achieved the take up can be significant.
Interestingly, concentration of people 75+ and village locations follow the weather. The North Island has 11.7% penetration and the South Island 7.3%. The wilder West Coast of the South Island has no villages.
