Retirement living construction activity levels are forecast to continue to lead the way in Australia, as prices, materials and labour continue to drive uncertainty.
The latest Property Council Survey reveals Australia’s retirement living industry continues to forecast strong confidence around capital value growth and construction activity over the coming 12 months.
However, Retirement Living Council Executive Director Daniel Gannon sounded caution on several fronts.
“There is still much uncertainty across property sub-sectors, with construction prices, materials and labour continuing to drive uncertainty,” Mr Gannon said.
“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,” he said.
Mr Gannon said retirement construction activity was expected to be at historically strong levels, outperforming other sub-sectors, and forecast to be 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,” Mr Gannon said.
“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 retirement living could play an important role in housing Australia’s rapidly ageing population, particularly as the nation battles an ongoing housing crisis.
“While the demographic and housing outlook is potentially grim, there is a solution to this crisis,” Mr Gannon said.
Logan City has close to 30 retirement villages and over 55s developments with varying levels of on-site management, resident monitoring, village services and health and related amenities.
Living Gems have three retirement resorts located across the city, with Amber by Living Gems and Opal by Living Gems in Logan Village and Ruby by Living Gems in Eagleby.
Amber by Living Gems homeowner, Laura, said the adjunct amenities in resort-style retirement living were an additional benefit to living within the community.
“If you are 50 and living in a private home you’d need to pay for your activities, such as going to the pool or playing lawn bowls,” she said.
“As a Living Gems resident, you have access to all these wonderful facilities right at your doorstep and everything is covered in the one outlay.
“Plus, your family or grandkids can come and join in the fun at any time.”
