For the 12 months to August, 23 New Zealand retirement village operators were responsible for 2,884 new homes, or 7% of the total development pipeline of 42,110 new homes. This needs to be compared to the population of NZ (5.2 million) and Australia (26.5 million) – NZ is just 20% of our headcount.
With five times the population, we in Australia are on track to deliver just on 3,000 new village homes this year. Between 120,000 and 140,000 homes are being predicted to be built in 2023 across the country, down from 200,000 in 2019. If retirement village homes were to account for 7% like New Zealand, then the number to be built should be 9,100 homes. Our 3,000 new homes is just 2%.
Why the difference? Back in 2008, in the middle of the GFC, the NZ village sector took it upon themselves to create a social license with the broad public that villages and village operators are responsible citizens.
They could execute this by requiring all village operators to be a member of the Retirement Village Association, and abiding by the strategy and decisions of the RVA. As a peak body, they have been proactive in bringing changes before being required to do so by public opinion or Government. Operators are trusted.
Village operators here need to do the same – join one of the two peak bodies: the Retirement Living Council or ACCPA. There is strength in numbers.
