Housing warning by leading developer
A Jones Lang LaSalle research paper warns that supply may exceed demand in some areas over the next two to three years, due to a failure by developers to factor in the consequences of a softer residential market.
The report compares the national penetration rate for retirement living in the over 65 cohort (5.25%) with benchmarks quoted only eight years ago (3%) – with some states experiencing much higher rates (WA 7% and SA 8%)
The combination of an ageing population and greater acceptance of a retirement living alternative could result in a national penetration rate of 7.5% to 8% over the next 15 years.
This would translate into 140,000+ dwellings or 1,400 new village developments (over 90 new villages per year).
