Living Well

AUSTRALIAN PROPERTY INSIGHTS

LIVING WELL

Aveo Parkside Carindale Retirement Living, QLD

AFFORDABILITY & FINANCIAL STRUCTURING

SHIFTING EXPECTATIONS AROUND HEALTH

Retirement Living offers a financial structure that enables older Australians to access housing suited to their needs without overcapitalising or sacrificing security. Entry prices typically sit 30–40% below the local median house price, allowing retirees to unlock equity from the sale of their home while staying in the same area. The Deferred Management Fee (DMF) is still by far the most prevalent structure in the sector, despite the emergence of new models. DMF enhances affordability by deferring a portion of the cost until exit, meaning residents face a lower upfront burden, which is especially valuable to income-limited retirees who are primarily reliant on the Age Pension. Importantly, this financial model is well understood and widely accepted – around 86% of Retirement Living operates with a DMF of 35% or less, based on industry metrics.

Although Retirement Living is not Aged Care, villages are increasingly providing low-touch health support and wellbeing integration. This is largely driven by ageing-in-place preferences and rising expectations among incoming residents. Many operators now include: • On-site allied health access (physiotherapy, podiatry, GP visits) • Wellness programs such as yoga, hydrotherapy, or group exercise • Home care package facilitation, helping residents apply for and receive government-funded care while staying in their units • Co-located care services, either through Aged Care Facilities or Assisted Living Apartments Operators offering these service elements often benefit from longer average tenure, more stable occupancy, and stronger resident satisfaction scores, reinforcing the investment case for mixed-service models.

CHART 5

AFFORDABILITY COMPARISON – ILU PRICE VS MEDIAN HOUSE PRICE (SAME POSTCODE)

Source: PWC/Property Council (2023)

Perth Metro

Adelaide Metro

Brisbane Metro

Melbourne Metro

Sydney Metro

10%

20%

30%

40%

50%

60%

70%

Source: PWC/Property Council (2024)

CUSHMAN & WAKEFIELD