Retirement living construction activity levels are forecast to be greater than residential, office, retail and hotels combined, according to fresh data.
The latest ANZ/Property Council Survey reveals that Australia’s retirement living industry is forecasting strong confidence around capital value growth and construction activity over the coming 12 months.
Retirement Living Council Executive Director Daniel Gannon said retirement living construction activity is nation leading.
“Given the number of people aged 65 and over will increase by 50 per cent to 6.6 million over the next two decades, we need to capitalise on a sector that is ready, willing and able to provide more homes for seniors,” Mr Gannon said.
“Retirement construction activity is at historically strong levels, outperforming other property sub- sectors, and is greater than residential, office, retail and hotel activity combined.
“However, we know that the development supply pipeline planned for the next three years is forecast to fall by more than half to 5,100 dwellings, largely a result of local planning systems and legislative frameworks that could constrain supply.
“If governments around Australia create investment and development environments that facilitate more supply, the sector is geared up to do it,” he said,
Mr Gannon said industry currently faces legislative reforms in South Australia, Victoria, Western Australia and Queensland, while Tasmania also recently announced plans to review its Retirement Villages Act.
“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 is high, construction activity is strong, and when the nation needs housing,” Mr Gannon said.
The survey also reveals that capital value growth for retirement living has grown by more than 30 per cent in the past quarter and is at its highest level since September 2018.