Living Well

AUSTRALIAN PROPERTY INSIGHTS

LIVING WELL

CHART 9

DISCOUNT RATE RANGE – RETIREMENT VS OTHER PROPERTY SECTORS

16%

14%

12%

10%

Prime Oce (Syd, Melb, Bris)

Prime Oce (Ade & Perth)

Retail - National Regionals

Retail - National Sub- Regionals

Prime Industrial

Specialised Medical Assets

Aged Care (Freehold)

PBSA (Prime) Retirement Villages

Source: Cushman & Wakefield Research

DISCOUNT RATE SPREAD Despite strong fundamentals, Retirement Living assets continue to trade at a material discount to other operational real estate sectors such as Build-to-Rent (BTR), Purpose-Built Student Accommodation (PBSA), and Aged Care. Discount rates for retirement portfolios typically sit 500–600 basis points higher than core sectors, reflecting perceived risk around liquidity, regulation, and operational complexity. However, this is gradually tightening, particularly for high-

GLOBAL SENTIMENT: AUSTRALIA AS A STRATEGIC RETIREMENT MARKET On the global stage, Australia is viewed as a mature and investable retirement market – sitting between the scale of the US and the institutional infancy of the UK and APAC peers. Global transaction volumes in Senior/Retirement Living have moderated but remained fairly resilient despite broader market caution. While the US continues to dominate activity – often with a stronger healthcare component – interest in Australia remains strong, particularly as investors see as offering opportunity for M&A/scaling strategies.

quality portfolios with: • institutional backing • geographic diversification • track record of strong cashflow performance • flexibility in contract and pricing models

The opportunity for attractive returns over the next market cycle is clear – particularly as investors search for defensive, long-hold asset classes with embedded demand and low correlation to short-term economic shocks.

CHART 10

GLOBAL RETIREMENT LIVING TRANSACTION VOLUME (2015–2025)

120

100

2015

2016

2017

2018

2019 2020 2021

2022

2023

2024 2025 YTD

Source: MSCI

CUSHMAN & WAKEFIELD