Monday 5 August 2024
MEDIA RELEASE
Retirement villages offer affordability in unaffordable housing market
A new report highlights the affordability of retirement village units across Melbourne at a time when house prices are out of reach for many homebuyers.
The 2023 PwC-Property Council Retirement Census reveals the cost of a two-bedroom unit in a retirement village in Melbourne is on average 48 per cent cheaper than homes in the same postcode.
The 2023 PwC-Property Council Retirement Census also reveals:
- The average price of a two-bedroom retirement unit in metropolitan Melbourne is $656,231, while the median price of houses in the same postcodes is $1,259,270.
- Retirement villages are effectively operating at full capacity in Melbourne, with just six per cent vacancy.
- Residents move into a Victorian retirement village on average at age 76 and spend 8.4 years living there.
Retirement Living Council Executive Director Daniel Gannon said the report shows the important role retirement villages play in providing affordable housing for older Victorians.
“Affordable retirement communities aren’t just helping older Melbournians – they’re helping young homebuyers too,” Mr Gannon said.
“When an older person or couple makes the decision to ‘rightsize’ into a home that is better suited to their ageing needs, they’re injecting a bigger home back into the market for younger people.”
Mr Gannon said a tightening vacancy rate means more supply is needed as the population ages.
“This report tells us that vacancy is now sitting at six per cent – down from nine per cent last year – which means these communities are effectively operating at full capacity,” he said.
“Given the number of Victorians over the age of 75 will increase by 73 per cent by 2040, a tight vacancy rate is concerning news for consumers and the government.
“This means the Victorian Government needs to streamline planning systems to ensure more affordable homes in retirement villages can help accommodate this growing cohort.”
Compared to people not living in a retirement village, research released in 2023 reveals residents are:
- 41 per cent happier
- 15 per cent more physically active
- Twice as likely to catch up with family and friends
- Five times more socially active
- And they experience reduced levels of loneliness and depression.
“This leads to reduced interaction with hospitals and GPs and generates $945 million in annual savings for the Australian Government by delaying entry into aged care facilities,” Mr Gannon said.
ENDS
Media contact: Joe Schwab | 0402 687 890 | [email protected]