For the first time, conclusively, the DCM Prospect Profile Research program has identified that just 3% of people aged 65 to 74 are genuinely retirement village customers.
For aged 75-84, the percentage rises to 5%. See the graph above for answers to Question 26:
“Which best describes where you are in the consideration journey?”
The survey, commissioned by DCM Research and conducted by leading research company AOR, was carefully constructed across 58 questions to allow extensive cross correlations to build a profile of the market funnel of potential customers.
Our further analysis identifies, at 3%, there are 74,100 real customers today across the entire country, but they are on different journeys. Some can take 15 years to eventually make a decision – ‘Yes’ or ‘No’.
This is not reassuring for the sector on first review but both we at DCM and AOR feel that this is a ‘glass half full’ vision of the village market.
We say, even with this small number of potential customers, that demand significantly exceeds supply. AOR states that:
“The retirement village sector is at a critical juncture where there exists enormous opportunity for growth. This is not just about maintaining sales, but creating a shift change in our society in the need the sector fulfills.
The Australian population is ageing. At the same time, COVID-19 has exposed the vulnerabilities of the oldest members of society.
43% of respondents report an increased sense of vulnerability as a result of the COVID-19 crisis.
Since 2018, there has been a significant increase in concern about ageing housing and care needs – from 13% to 23% very/fairly concerned, in two years.
An additional 10% of the 60+ population is now concerned about their future needs, be they health, emotional or financial. More specifically, 20% are concerned about the suitability of their home.”
The full DCM Prospect Profile Report will be available in the next 10 days for sponsoring operators.
If you would like to invest in a copy, please email me here.
