Retirement living construction and price growth is accelerating, according to the latest ANZ/Property Council Survey.

The chart above shows how construction and price fell at the onset of COVID-19 but has recovered but not to the levels seen in late 2018. Construction and price growth is returning back to the levels of December 2019.

The ANZ Property Council survey also shows that capital activity growth (index for level of activity) for retirement living has grown more than any other sector – the dark green line) and is at its highest level since September 2018.
 

“Retirement construction activity is at historically strong levels, outperforming other property subsectors, and is greater than residential, office, retail and hotel activity combined,” Property Council’s Retirement Living Council Executive Director Daniel Gannon said.

“However, we know that the development supply pipeline planned for the next three years is forecast to fall by more than half to 5,100 dwellings, largely a result of local planning systems and legislative frameworks that could constrain supply,” he added, citing the surprising figures from the 2022 PwC Property Retirement Census.

Daniel added if governments, federal, state and local, bring in legislation to attract investment and development opportunities for the sector, it would respond.

The SOURCE: Planning laws must be changed if the retirement living sector is to grow