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REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

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Page 1: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Author: Karen Dellow, Analyst

March 2021

Retirement Living Report

Page 2: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Ageing population creates surgein demand for retirement living accommodation with a focus on community, lifestyle, & wellness.

Page 3: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Based on data from the Australian Bureau of Statistics (ABS), in the year ending 30 June 2020, the population aged 65 years and over increased by 145,600 people (or 3.6 per cent).

This poses some important questions. Is there the right accommodation available to meet the wants and needs of these Australians when they retire? And are there enough options available?

As at the last census, in 2016, 6 per cent of 65 and overs lived in retirement accommodation. The proportion in Queensland (QLD) was 7.9 per cent, helped by strong migration of retirees from New South Wales (NSW) and Victoria (VIC).

Australia’s population of 65 and overs is set to increase significantly from 16 per cent in 2020 to potentially 20 per cent by 2036 and 23 per cent by 2066.

Proportion of population aged 65 years and older

2000 2005 2010 2015 2020

0%

10%

8%

6%

4%

2%

18%

16%

14%

12%

Source: ABS

Aged 65-84 Aged 85 and over

11.1%11.1% 11.45%11.45% 11.8%12.95%12.95%

14.24%14.24%

1.32%1.32% 1.5%1.5% 1.75%1.75%

2.05%2.05%1.97%

Page 4: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Persons over 65 years old are more likely to live in a coastal or regional area than in a city, with 17.7 per cent favouring a tree/sea change in retirement. In comparison, only 13.7 per cent of over 65s live in metro areas.

Popular areas are the Gold Coast, Newcastle, Central Coast (NSW) and the Mornington Peninsula. The local government areas with highest proportion of over 65s are Queenscliff (VIC), Victor Harbor (SA) and the Yorke Peninsula (SA).

Sea change, tree change popular amongst retirees

LGAs with the oldest population

Queenscliff, VIC

Victor Harbor, SA

Yorke Peninsula, SA

Barunga West, SA

Glamorgan/Spring Bay, TAS

Eurobodalla, NSW

Mid-Coast, NSW

Tasman, TAS

Sandstone, WA

Wyalkatchem, WA

Yankalilla, SA

Alexandrina, SA

At the last census more retirees lived in coastal and regional areas.

Aged 65+

40.60%

39.20%

32.50%

32.50%

32.10%

30.50%

30.10%

29.40%

29.20%

29.00%

28.90%

28.70%

Aged 75+

18.80%

17.70%

13.70%

13.40%

10.80%

12.80%

13.10%

10.60%

3.40%

14.30%

10.40%

11.80%

Page 5: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

There are several factors that are driving a change in retirement living options, aside from an increase in the number of retirees, and there are some interesting new developments in the works.

The traditional retirement villages are still popular and, as retirees are healthier and more active than in the past, the recreational activities on offer are more important than ever.

Most villages have a minimum age limit of 50 or 55, still young enough to live an active lifestyle, so villages are offering gym classes, yoga, swimming, golfing, and storage for your boat, if you fancy a sail.

At the last census, there were 170,000 independent living units in retirement villages, 74 per cent of which were in VIC, NSW, QLD.

Retirement living options

Retirement villages

Page 6: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Over 55s manufactured home estates are a cheaper option for retirees who do not have the funds for luxury beachside villages with lots of onsite amenities.

Retirees buy the portable home and rent the land on the estate. It is not uncommon for these sites to be on land that cannot get planning permission for other types of housing because it is on a flood plain or at risk from bush fire.

These sites can also lack amenities, unlike the retirement village model, and can be remote, making it hard for residents to get weekly shopping or have access to medical services.

Manufactured home estates

Page 7: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

A new retirement living trend is luxury inner city retirement complexes that offer vertical, high density living with integrated care facilities so residents can stay close to family and friends but get aged care as their needs change.

They are marketed as independent living, serviced apartments, and residential aged care in the one location and an example of this development is the Newstead project in Brisbane’s gasworks district that has everything from a cinema, a salon and a men’s shed, where you can do DIY.

As demand increases, but available land diminishes, serviced apartments are being built to cater for those whose budget does not afford a house in a retirement village.

The apartment development in Aveo Taringa in Brisbane is being built in an existing Mediterranean resort-style retirement village and has access to all the amenities that the site has to offer.

Co-located developments

Serviced apartments

Page 8: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

An analysis of retirement listings on realestate.com.au shows 58 per cent of retirement listings were in QLD and NSW in 2020 and 66 per cent of these listings were in metro areas.

The predominance of metro listings is not as high for all states with QLD, NSW and Tasmania (TAS) showing a more even split of listings in regional and metro areas.

In QLD and NSW, the top ABS Statistical Area Level 4 (SA4) areas are regional, with the Sunshine Coast (QLD) and Central Coast (NSW) top for retirement listings.

Location of retirement properties in Australia

ACT WA SA VIC QLD NSW TAS National

0%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

100%100% 92

%92% 86

%86% 79

%79%

55%55% 51

%51%

40%40%

66%66%

8%8%

14%14%

21%21%

45%45%

49%49%

60%60%

34%34%

Metro Regional

12 months to December 2020

12 months to December 2020

Retirement living listings by state & regional split

Retirement Living Listings by SA4

Page 9: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

While QLD and NSW have the most listings, when it comes to the areas that receive the most interest from retirees, NSW, VIC and TAS are way ahead.

The Eastern Suburbs of Sydney, Hobart and Launceston are in high demand, not only because they are desirable locations, but also because there are fewer retirement listings in these areas.

If we drill down to the suburbs, beachside areas are the most in-demand, with a few outer metro areas that are near to green spaces, but still close enough to all city amenities.

Most in-demand areas for retirement living

Rank

1

2

3

4

5

6

7

8

9

10

Rank

1

2

3

4

5

6

7

8

9

10

Sydney - Eastern Suburbs

Hobart

Launceston and North East

Melbourne - Inner South

Melbourne - Inner

Sydney - North Sydney and Hornsby

Sydney - Baulkham Hills and Hawkesbury

Sydney - Outer West and Blue Mountains

Adelaide - Central and Hills

Perth - Inner

Mosman NSW 2088

Waverley NSW 2024

Patterson Lakes VIC 3197

Campbelltown SA 5074

Williamstown VIC 3016

Cherrybrook NSW 2126

Campbelltown NSW 2560

Bateau Bay NSW 2261

Donvale VIC 3111

Windang NSW 2528

Most in-demand SA4s for retirement listings 2020

Most in-demand suburbs for retirement listings 2020

Page 10: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

It can be quite pricy to live in a retirement community, given the additional services and facilities that are included.

Although, according to the retirement census, properties in a retirement village can be up to 33 per cent cheaper than a house in the same postcode. In Sydney, 45 per cent cheaper.

In Elizabeth Bay, NSW, the median price for a retirement property in 2020 was $1.1M; however, houses in that area can reach more than $10M.

Even with a smaller budget, retirees can get a reasonably priced property in a suburb near the beach or green space for less than $200,000, such as Avoca in Bundaberg or Murwillumbah, along the Tweed River.

Rank

1

2

3

4

5

Elizabeth Bay NSW 2011

Ascot QLD 4007

Miami QLD 4220

Waitara NSW 2077

Mosman NSW 2088

Listings in beach suburbs are the most expensive.

Most expensive retirement suburbs

Retirement options for every budget Aged 75+

 $1,100,000

 $   798,750

 $   772,500

 $   745,000

 $   722,500

Rank

1

2

3

4

5

Magill SA 5072

Murwillumbah NSW 2484

Campbelltown SA 5074

Upper Mount Gravatt QLD 4122

Aged 75+

 $158,500

 $159,000

 $165,000

 $165,000

 $167,000

Lowest price retirement suburbs

Bargains can be found outside the larger cities.

Page 11: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

In the past 12 months there have been more than 200 new developments for retirement living across the country listed on realestate.com.au, all with different styles of property and many different options in terms of shared activitiesand amenities.

Beachside villages, such as The Mornington Retirement Village (Mornington, VIC) and Bougainvillea - The Bay Club Resort (Neutral Bay, NSW) were top of the list. Although, villages closer to cities but with green spaces nearby were also popular, such as Applewood (Doncaster, VIC).

The most viewed new developments

Rank

1

2

3

4

5

Retirement Development

The Mornington Retirement Village

Bougainvillea - The Bay Club Resort

Four Lanterns Estate

Applewood

One Hill Estate

Most in demand retirement projects

The top 5 developments are sea-change / tree-change villages with lots of facilites.

Suburb

Mornington, VIC

Neutral Bay, NSW

Leppington, NSW

Doncaster, VIC

Seven Mile Beach, TAS

Page 12: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Australia’s over 65s are healthier and more active than past generations of retirees, and there are more of them than ever, which is driving demand for different options of retirement living.

Past retirement developments have focused on relaxing and easing into old age, with low impact activities such as bowling and aqua aerobics.

The new trend in retirement living is more focused on maintaining a lifestyle that over 65s have been used to in their younger years and maintaining communityand social networks.

What is significant about these new developments is that many are inner city, such as Ardency (Richmond, VIC) and Gasworks Plaza (Newstead, QLD).

The future of retirement living

Page 13: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

Rank

1

2

3

4

5

Retirement Development

Gasworks Plaza

The Rose by Moran

Grandton Applecross

Ardency Kennedy Place

Menzies Malvern

Most expensive retirement properties

Suburb

Newstead, QLD

Wahroonga, NSW

Applecross, WA

Richmond, VIC

Malvern, VIC

Retirement living for life is also becoming more popular, with retirement developments offering different levels of care depending on your health and life stage.

This gives retirees the option to remain independent while they can but know there is additional help available as time progresses.

Another trend is the super luxury retirement option, such as The Rose by Moran, which offers luxury independent living. Amenities on offer include a heated indoor pool with spa, infra-red sauna, cinema, library, cellar, workshop and a bar and clubroom.

Luxury developments will set you back at least $2M.

Luxury inner city apartments with price tags nearing $2M, or above, are the latest trend in retirement living luxury.

Page 14: REA Group Ltd · 2021. 3. 5. · 41.+ )#) 1 1) # ) %+) . 1 ,1)4 +1)# ) 1 ,. , .) 4 !*),) %+) +1 )+ , )&3) +) 3 3*) %+) # 1 ,#)1 + )) +1 .) 1 )#+ ), +1.+ )" )( * 33

COVID-19 has highlighted concerns about the risk of catching and spreading viruses in retirement living facilities. Key factors include age and existing health conditions of the residents, as well as the communal nature of the facilities, activities, meals, transportation, and socialising.

Searches for properties with granny flats, or dual living facilities, increased by 28 per cent year-on-year, suggesting that many Australians might be thinking about living with their parents as they age, rather than going into a retirement complex.

As the 65 years plus demographic increases, there is a pressing need for more retirement living and the style of properties on offer to be varied, ranging from the super luxury, with numerous amenities and health care options, to the Manufactured Home Estates without additional medical facilities and services.

The next generations of retirees are going to be fitter and healthier than those before them, with a more youthful mindset, so facilities, activities and convenient locations close to family and friends will be key.