In less than two decades, Australia’s population aged 65 and over is forecast to grow more than 50 per cent to 6.66 million.
Smells like a significant development opportunity.
Retirement living specialist Chanje Partners’ Jen Berryman agrees and despite the many myths surrounding the sector, says the development approach and financial opportunities are not dissimilar to the emerging poster child asset class of build-to-rent.
“It has a very similar service focus,” Berryman says. “That's something I think existing operators are really beginning to grasp the magnitude of at the moment, the customers’ demand for a really high level of not only amenity but service as well.
“And the fact that in retirement living you can earn both sales proceeds and recurring income while still retaining ownership of the asset offers a very appealing opportunity for developers.”
But she says confusion still reigns between what is retirement living and what is aged care, and that uncertainty in the developer mindset can be a potential barrier.
Berryman will be a keynote speaker at The Urban Developer Aged Care and Retirement Living vSummit on March 23 dispelling the prevailing myths with a view to piquing interest in the development opportunities that exist in the sector.
“Many residential developers think that because they don’t necessarily have wellbeing or clinical experience it is out of their scope,” she says.
“But, actually, there are businesses and teams that can help to operate retirement living communities for them. So they can still benefit from the financial mechanics of the retirement living space without having to necessarily take on the operator role themselves.”
One of the major trends shaping the sector at the moment is the “ageing in place” model.
“The opportunity for developers is in creating retirement communities that offer prospective buyers the ability to move in and not have to move again.
“The fact at the moment is that the majority of older Australians would prefer not to move into the clinical environment of aged care facilities if there are suitable alternatives.
“We're working with a number of clients whose developments are very much being driven by what the customer wants now and also what the customer is going to be wanting in the future.
“So they’re building in terrific lifestyle and wellbeing support mechanisms, which include support to assist residents to age in place in that same community without having to transfer to another location.
“That’s one of the big trends at the moment and absolutely gaining momentum.”
The Urban Developer Aged Care and Retirement Living vSummit will take place on Thursday, March 23. Click here to register.
