A recent Property Council Survey has indicated that retirement living construction activity will continue to grow in the next few years, leading the entire industry out of a turbulent period of lockdowns and supply chain adversities.

The Council believes there is strong industry confidence around capital value growth and construction activity within the sector over the coming year. Despite this confidence, the Retirement Living Council is weary of the findings.

“There is still much uncertainty across property sub-sectors, with construction prices, materials and labour continuing to drive uncertainty,” says the Retirement Living Council’s Executive Director Daniel Gannon.

“The other x-factor is legislative reform, which is taking place in every corner of the country and impacting two thirds of Australia’s retirement living markets.

“If these reforms make it harder for operators to build and operate age-friendly communities, it could tighten the supply clamp at a time when confidence remains high, construction activity has a strong pipeline, and when the nation needs housing.”

Gannon says that retirement construction activity is expected to reach record highs, forecasted to be even greater than residential, office, retail and industrial activity combined.

“However, we know that the development supply pipeline planned for the next three years is forecast to fall by more than half, largely a result of local planning systems and legislative frameworks that could constrain supply,” he says.

“If governments around Australia create investment and development environments that facilitate more supply, the sector is geared up to do it.”

Gannon believes retirement living has a major role to play in the nation’s housing crisis, with an ageing population a growing and ever-present issue.

“While the demographic and housing outlook is potentially grim, there is a solution to this crisis,” he says.

“The more than 2,500 retirement villages across the country can allow residents to maintain their independent lifestyle as they age, while still enabling them access to care, support services and community.

“Given the number of people aged 65 and over will increase by more than 50 per cent to 7.1 million over the next two decades, we need to capitalise on a sector that is ready, willing and able to provide more homes for older Australians.”

Image: Bowden Brae Retirement Village by PTW Architects

Architecture & Design Team

Retirement-living-construction-to-lead-industry-1732010110.png

Let’s connect!