The latest Property Council survey reveals Australia’s retirement living industry continues to forecast strong confidence around capital value growth and construction activity over the coming 12 months.
However, Daniel sounded caution on several fronts.
“There is still much uncertainty across property sub-sectors, with construction prices, materials and labour continuing to drive uncertainty,” he said.
“The other x-factor is legislative reform, which is taking place in every corner of the country and impacting two thirds of Australia’s retirement living markets.
“If these reforms make it harder for operators to build and operate age-friendly communities, it could tighten the supply clamp at a time when confidence remains high, construction activity has a strong pipeline, and when the nation needs housing,” he said.
The latest PwC / Property Council Retirement Living Census forecast the development supply pipeline planned for the next three years is forecast to fall by more than 50%, largely a result of local planning systems and legislative frameworks that constrain supply.
“If governments around Australia create investment and development environments that facilitate more supply, the sector is geared up to do it,” he said.
The SOURCE: With retirement living demand still high, the only solution is new development or expansion.
