Thursday, July 25, 2024

Govts told to ride retirement construction wave

The Retirement Living Council (RLC) is urging state and territory governments to “get their skates on” and take advantage of strong industry confidence in construction activity.

The latest Procore/Property Council Survey reveals that while confidence in retirement construction activity slightly decreased in the June quarter, it is still forecast to be greater than residential, office, retail and hotels combined over the coming 12 months.

The survey also found retirement living capital growth expectations are at their highest level since June 2018.

RLC Executive Director, Daniel Gannon said it was important for state and territory governments to understand the significant socio-economic opportunity in unleashing more age-friendly retirement communities.

“With the number of Australians over the age of 75 set to increase from 2 million to 3.4 million by 2040, retirement villages can help alleviate problems associated with housing and health,” Mr Gannon said.

“Despite a lack of focus on older Australians during state budget season, this data shows industry is still ready, willing and able to inject more affordable homes into otherwise unaffordable housing markets.

“Retirement village residents are 20% less likely to require hospitalisation after only nine months living in one of these communities, which leads to 14,000 avoided annual hospitalisations across Australia.

“Residents are also 41% happier, 15% more physically active, five times more socially active, twice as likely to catch up with family or friends and have reduced levels of depression and loneliness compared to people who don’t live in a retirement community

“As a consequence, these communities are minimising the interactions older Australians have with GPs and hospitals, while importantly delaying entry into taxpayer funded aged care and saving the government $945 million annually as a result.

“The added bonus is that when older Australians ‘rightsize’ into a retirement village, it frees up important supply in the housing market for young couples and families,” he said.

The 2023 PwC-Property Council Retirement Census reveals that the average price of a 2-bedroom ILU is 43% cheaper than the median house price in the same postcode, with vacancy rates tightening to 5% nationally.

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