The Retirement Living Council (RLC) is calling for government action to address declining confidence in retirement construction activity, as revealed by the latest Procore/Property Council Survey.
The survey indicates that sentiment in the retirement construction sector has fallen to its lowest point since December 2022, with capital growth expectations also experiencing a downturn in the September quarter.
RLC Executive Director Daniel Gannon highlighted the lengthy approval process for retirement village developments as a major concern.
“We know that 67 per cent of retirement village development applications take more than 365 days to complete assessment, while 23 per cent take more than 730 days,” Gannon stated.
He criticised the apparent contradiction in government policies, noting that while there are calls for increased housing supply, bureaucratic processes appear to be hindering development.
Despite the overall downturn, Gannon emphasised that the retirement living industry still maintains the strongest sentiment for construction activity compared to other sectors.
He stressed the importance of retirement villages in addressing future housing and health challenges, citing projections of an 85 per cent increase in Australians over 75 by 2040.
Gannon highlighted several benefits of retirement communities:
- Residents are 20 per cent less likely to require hospitalisation after nine months of living in these communities.
- Retirement village residents are reported to be 41 per cent happier and 15 per cent more physically active than their counterparts in the broader community.
- These communities help delay entry into taxpayer-funded aged care, saving the government an estimated $945 million annually.
To improve planning systems and boost housing supply, the RLC has proposed several policy recommendations:
- Establishing minimum land allocations for retirement communities in under-supplied areas.
- Offering development bonuses to incentivise retirement village construction.
- Setting clear policies and targets for increasing age-friendly developments in strategic regional and metropolitan plans.
The RLC’s call for action comes at a time when the Australian government is facing challenges in meeting its National Housing Accord target.
The Master Builders Association has forecast that the government will fall short — by 112,675 homes — of its target to build 1.2 million new homes by 2029.
Gannon suggests that the retirement living sector could help bridge this gap, as the industry requires 67,000 units to be built by 2030 to maintain existing market demand.
As the country faces a rapidly aging population and ongoing housing crisis, the retirement living sector’s potential to contribute significantly to housing supply and alleviate pressure on healthcare systems becomes increasingly important.
The government’s response to these calls for planning reforms and streamlined approval processes could play a crucial role in shaping the future of age-friendly housing in Australia.