THERE’S no denying 2017 was a tough year for the retirement living industry, with the spotlight on contracts, fees and more. But retirement villages are still a popular lifestyle choice.
And lifestyle is the key word.
Baby boomer retirees want resort living with hotel-style services such as bistros, beauty salons and in-house cinemas, visiting health professionals, entertainment on tap and cash left over from the sale of the family home to splash about in their later years or provide for family.
In fact, so popular are villages across the country that they are almost at full practical capacity leading the Property Council of Australia to call for urgent action to encourage the development of new retirement villages in all major cities.
“Nearly 200,000 senior Australians have made the informed decision to choose retirement village living and this number is set to grow sharply in the coming decade,” Property Council executive director - retirement living, Ben Myers said, adding that without significant improvements in state planning policy the industry is facing “an imminent capacity crisis”.
A 2017 Property Council Retirement Census by consultancy organisation PwC and the Property Council shows that 41 per cent of retirement villages have a pool and gym, 91 per cent have a community centre, 84 per cent organise community outings and activities, 68 per cent allow pets, 76 per cent have visiting health professionals and 91 per cent provide emergency call systems.
Price and affordability is a driving factor, with retirement village units on average less than 70 per cent of the median house price in the same postcode.
The desire for secure, affordable, luxury living is one which property experts predict will drive future developments.
“Beyond affordability, retirement living accommodation is also increasingly connected to health and lifestyle services for senior residents,” said PwC real estate advisory partner Tony Massaro.
The development of vertical retirement villages (multi-storey buildings) is also gathering momentum allowing retirees to remain close to the inner city lifestyle.
The census found the average age of residents is 80 years and 65 per cent are women. Nationally, only 28 per cent of villages in the census reported co-locating with aged care or having aged care within 500 metres of the village.
The census, which was completed by more than 56,000 retirement units, uncovered three key sector trends:
- Home care: Retirement village operators are providing or partnering with service providers to offer home care to village residents, with 40 per cent of villages reporting they are an approved provider for either home care, residential care or flexible care.
- Affordability: Moving into a retirement living unit continues to be affordable as the average independent living unit costs less than 70 per cent of the median house price in the same postcode, allowing seniors to unlock capital to improve their quality of life.
- Contraction of Maximum Year Deferred Payment: This percentage is now reached sooner with about half the villages reaching maximum percentage by year five while the remaining villages reach the maximum percentage by year 10.
