More retirement village growth predicted in Qld

In its latest research paper, global commercial property services firm, Jones Lang LaSalle, has identified Ipswich, Caboolture, Cairns, Caloundra and Logan as emerging major retirement village ‘hotspots’, amid growing investment in retirement village developments around Australia.

The research paper, entitled Is Supply Meeting Demand or Missing the Mark?, was compiled using newly updated data from Jones Lang LaSalle’s comprehensive national retirement village database.

Peter McMullen, national director of Health & Aged Care Services for Jones Lang LaSalle, and author of the paper, noted that there were more opportunities for the development of retirement villages in Australia today than ever before, mostly because Australia’s population is ageing more rapidly than at any time in the past.

“To meet this surge in demand, it is predicted that up to 140,000 new dwellings in retirement villages are needed over the next 15 years – an investment of about $42 billion (in 2008 dollars) in new construction.

“Developers and institutional investors are already paying attention to this growing sector, and we anticipate retiree housing will equate to about 7% or 8% of the new residential housing market in 15 years time.

“Currently it is the parents of baby boomers who have taken up retirement village living, however, as the baby boomers themselves are approaching retirement, we expect to see an increasing number from this generation entering retirement villages in the next twelve to fifteen years.

“Another factor in the growth of the sector is that retirement village living is becoming much more accepted, with participation rates increasing year on year.

“At present, approximately 5.25% of the over 65 population live in retirement villages, a significant increase from the 3% – 3.5% benchmark from only eight or nine years ago,” he said.

“This increase in uptake and anticipated demand is supported by a strong pipeline of new retirement villages and expansion in existing retirement villages.

“Currently there are over 500 new villages with more than 51,000 new units either proposed, approved or under construction.  In addition, another 20,700 new units are either proposed, approved or under construction in existing villages”.

The paper details a number of potential retirement village ‘hotspots’ that have yet to be fully appreciated by developers and investors.

These are local government areas that are predicted to have significant growth in their over 65 populations, but have until now, experienced limited retirement village development.

Mr McMullen said many factors contribute to create a retirement village ‘hotspot’.

“Along with growing populations over 65, affordability and the availability of infrastructure, such as public transportation are important drivers.

He said that state government funding and planning, local council support, and public and private development of infrastructure have a critical role to play in the success of the industry.

“Retirees looking to move to a retirement village want to know that top quality healthcare facilities and services; transport links; retail hubs; and also recreation, community facilities and clubs are nearby and accessible,” he said.