The Baby Boomer generation is being ignored by the Labor and Liberal-National Coalition parties as the Gen Y and Gen Z become the increasingly dominant generations and this will not change.
Nothing has been said about making it easier to build retirement village homes and land lease communities, nothing has been said about raising the Age Pension and nothing is being said about the shocking situation facing people in need of a Home Care Package. As the Coalition agreed to the new Aged Care Act, it seems powerless to attack Labor’s promise in 2022 to fix aged care.
However, the Reserve Bank of Australia in February reduced rates from 4.35% to 4.1% following 13 consecutive hikes, starting in May 2022 (the month the Albanese Government came to power).
The result saw Australian property values reach new heights in March, reversing a recent downward trend. Nationally, property rose 2.8% over 12 months ago.
On 20 May, the RBA is almost certain to reduce rates by a further 0.25%, with some commentators suggesting a 0.5% cut. Why is this good news for retirement living operators?
It will mean house prices will continue to rise and it will make clients happier to make the move to retirement villages, against a backdrop of a number who are being forced to offer incentives to entice buyers.
Lifestyle Communities in a 3QFY25 Update revealed the extent of the problems with 66 customers who have laid deposits still unable to sell their existing homes. The operator has 242 unsold homes at the beginning of this month.
In the first three months of this year, villages.com.au has had its busiest quarter ever from an impressions and enquiries point of view and we are now working with more operators than ever before as they look to keep sales moving in a tougher market.
The falling rates will also help boards to be convinced it is time to start developing and renovating. The last Retirement Living Census stated the average national age of villages is 29 years.
Villages.com.au is Australia’s leading retirement living real estate site. If your business is struggling to sell homes, then email adrian.leppard@thedcmgroup.com.au and/or alex.jovovic@thedcmgroup.com.au