Trouble ahead for retirement village industry
Last month’s The Village Manager newsletter reported that housing prices across Australia have levelled out and the banks are starting to restrict funding for owner-occupiers, especially those trading up to a new home, affecting forward sales of Independent Living Units (ILU’s).
Six consecutive interest rate rises will flow through to demand and house prices this winter quarter. Housing finance for owner-occupiers has fallen steeply.
The average number of occupants has reportedly increased from 1.6 to 1.8 people per dwelling – equating to 10% of homes being made vacant. Banks are reporting that investors dominate buyers, not homeowners. All this is making banks nervous about values.
New South Wales (NSW) grew by only 1.64% and lost a net 13,800 residents who moved interstate over the past year – about the same number that Queensland received as new interstate immigrants.
Western Australia grew 2.65%, Queensland 2. 44%, Victoria 2.13%, NSW 1.64%, South Australia 1.32% and Tasmania 0.89%.
Melbourne is predicted to be bigger than Sydney by 2051 at this rate.
