We have not seen conditions this strong since we started the business in 1999. Here is our take on why this season may be the perfect platform for retirement living operators.
BOOMERS BOOM – Baby Boomers are not getting any younger. With 75 being the average age entering villages, 2021 marks the start of those retirees entering the marketplace, and they have started their march in droves!
RISING HOUSE PRICES & CONFIDENCE – It was only 6 to 9 months ago we were fearing the worst, but now housing prices are rising in most communities across Australia, and with it, rising confidence for retirees to finally sell the family home and downsize. This latest CoreLogic data shows rising housing prices in most cities, with Sydney and Melbourne rebounding strongly this year, and places like Hobart and Canberra showing exceptional growth over the last three years.
CHANGING RETIREE EXPECTATIONS – We see many retirees in appointments every month and lately, more are presenting confident to bring forward their plans and move into quality retirement living developments to reap the benefits of community living.
POST COVID INFLUENCER SURGE – Since Christmas we are seeing a surge in influencer involvement in retirement living decision making. Children are encouraging mums & dads to take the plunge to combat the challenges of social isolation and disengagement that many experienced during Covid lockdown in 2020.
DECREASE IN PLANNED DEVELOPMENT – Property Council’s Retirement Census has predicted a significant drop in projected units coming on the market from 5,000 to 3,200 over the next few years. In many communities, this FOMO and lack of quality stock is driving significant buyer demand.
The message to the industry – lets continue to develop new projects and communities to service this surging boomer demand.