The global property consultancy’s Report - Seniors Living: One piece of the Living Puzzle - states investors, both locals and overseas, should look favourably on the sector due to the ageing population and the increasing acceptance of land lease communities (LLC).
“The seniors living sector delivered strong total returns, averaging 12.8% per annum between 2013 and 2023, outperforming traditional asset classes and only slightly below the purpose-built student accommodation sector,” states the report by Chamali De Alwis, Manager, Research Australia, and Andrew Quillfeldt, Head of Capital Markets Research Australia.
“Furthermore, the rising development of luxury, modern retirement villages are shifting previous stigmas towards the sector.
"Australia presents an increasingly unique opportunity for investors to capitalise on a sector not only underpinned by favourable demographics, but also strong operating and financial metrics."
JLL said it had only identified 20,800 units in the pipeline at various development stages (from planning to construction) across the sector for completion by 2030, adding the figure may be over stated.
It estimates current retirement stock will almost need to double between 2024 and 2071 to maintain the current penetration rate of 5.7% of Over 65’s. Looking over a shorter timeframe, 46,000 units will be required to maintain current penetration rates.
In the land lease communities sector, JLL expects to see further capital partnerships to drive investment as the sector continues to develop.
Browse the #1 website villages.com.au and check availability for all retirement living and land lease resorts
