Living Well

AUSTRALIAN PROPERTY INSIGHTS

LIVING WELL

KEY TAKEAWAYS

Demographic demand is entrenched Australia’s over-65 population is set to double by 2063, creating an even deeper, long- term demand pool for Retirement Living products.

Current delivery falls short

Occupancy remains at record highs National retirement village occupancy hit 96% in 2024 — the highest on record and a clear signal of market tension.

A sector in transition, not infancy While the sector is maturing fast, delivery capability remains uneven — highlighting a growing gap between investor appetite and routes to market. M&A activity and consolidation represents a strategic opportunity.

In 2024, only 1,339 new Independent Living Units (ILU’s) were delivered — less than 20% of what’s needed to meet demand and maintain penetration rates.

An elevated return profile The discount rate spread between Retirement Living and other sectors, although tightening, represents an opportunity over the next cycle.

Contract models are evolving Operators are expanding beyond DMF to offer prepaid, refundable, and rental options — increasing choice and financial accessibility.

Political support is real Enabling growth in the sector stands out as a bipartisan priority, backed by both major parties for its role providing suitable homes for the elderly.

CUSHMAN & WAKEFIELD