Based on a 2021 PwC/Property Council Retirement Census sample, the Property Council of Australia is bullish for the growth of retirement villages across the country.
It stated in a press release that the development supply pipeline planned by participating operators has doubled from the 2020 Retirement Census from just over 5,500 to over 10,500 over the next three-year forecast period.
Supply in NSW is expected to be particularly strong through FY23 and FY24, with the metropolitan areas of Sydney, Melbourne and Brisbane having indicated the greatest concentration of supply of units to the market, the Property Council stated.
And more projects in land lease have been announced subsequently as we have covered.
As the SOURCE has reported, Stockland Halcyon is building two new land lease communities in VIC and CEO Tarun Gupta said earlier this month it wants more land lease developments. Already it is building 1,130 land lease homes in six communities. It will have seven LLCs in development by the end of FY24 – five in VIC and two in QLD. Its total development pipeline is 7,200 land lease homes.
Ingenia Communities has a total pipeline at 6,450 units and is seeking to accelerate construction with 500 new homes being built this financial year.
However, the legislative reform agendas on the Retirement Village Acts in VIC, QLD and SA are seen as a threat to the sector’s growth. Already in WA, the State Government is drafting reforms including a 12-month deadline for exit entitlements, which is going to be difficult for operators outside Perth to achieve on current data.
