The village occupancy rate across a sample of 531 locations declined from 90% nationally to 89% between 2021 and 2022. This against a market said to be booming and when there is a severe housing shortage across the country.
The graph above is from the 2022 PwC / Property Council Retirement Village Census.
Only villages in Tasmania, Canberra and Rest of SA are arguably full. The rest have arguably 5%+ vacancies.
We asked a number of operators why and the common answer is that small units and old serviced apartments are hard to move. This strikes us a perhaps lazy, given the demand for housing everywhere. Perhaps the operators need to more carefully analyse their pricing and marketing.
The graph above shows the development pipeline planned for the next three-years to calendar year 2025 has fallen by more than half to 5,100 dwellings compared to the 2021 Retirement Census forecast of over 10,500 dwellings.
This collapse has not been explained but is of major concern as the sector requires 5,500 new village homes to be built and delivered each year to maintain penetration of 6% of all people aged 65+. Every year since the GFC the sector has fallen behind, and now increasingly so.
More Government regulation is not helping the sector.
Daniel Gannon, Retirement Living Council Executive Director, says “There is a drastic supply challenge in those jurisdictions at a time when its legislation is under review.”
“This is why we remind policy-makers that any new or evolving legislative framework must enable housing supply, not constrain it.”
Changes to Retirement Village Acts are in play in Victoria, South Australia, Western Australia, Tasmania and Queensland.
The SOURCE: If the retirement village sector is not proactive to protect and grow its position in the market, others will enter to provide innovative seniors housing and care.
