Retirement Living Census results released
The results of the annual PwC-Property Council Retirement Living Census were launched at the National Retirement Living Summit held on the Gold Coast in late November. This year’s census surveyed 56 retirement village operators, managing 617 villages that represent almost 70,000 retirement living units across Australia. This represents an increase on participation in recent years, ensuring an up to date snapshot of where the industry is at currently.
At a national level, some of the key take outs from the census results include:
- Lower median DMF percentages and separate capital gain sharing
- An increase in the proportion of vertical and combinations villages in villages under development
- An increase in the average number of days it is taking to sell ILUs, and
- An increased proportion of villages offering guaranteed buybacks to residents
From a WA perspective, census participants reported that the average village occupancy rate remains at 89%, while the percentage of villages with aged care co-located or in close proximity dropped from 40% in 2018 to 37% in 2019. Average village entry age for residents remained at 74 years, but average tenure data paints a different picture. Past (or existing) residents increased their average tenure from 9.9 years to 11 years over the past 12 months and new residents in WA are staying longer on average at 9 years, where last year it was 8.5 years.
Despite WA’s continuing sluggish house prices, the average two bedroom ILU price compared to the median house price for the same postcode remained close to the national average. In Perth, the average two bed ILU cost 66% of the median house price in the same postcode and in regional WA, it costs 69%. This represents a decline from last year’s results of 1% in metro villages and 17% in regional villages.
You can find more information on the census, including the summary of results, here.