Over the last few weeks the DCM team has been travelling across Australia filming our TV series The Best 30 Years.
We are interviewing community managers and residents in retirement villages and land lease to accurately explain what they are to the Channel NINE TV viewers, plus social media, and present their value propositions.
One surprise has been the fact that the land lease communities we are visiting are attracting new residents with an average age of 71 – older that the past core market of 55 to 70.
What is also clearer is that they are very active 70 year olds.
Whether it is Ten Pin Bowling, darts or aquarobics, all the sessions are full.
So will land lease be increasing competition for retirement villages? The answer is ‘No’, as the model requires large land holdings which are just getting harder to find, while retirement villages are successfully going vertical in capital cities and regional hotspots.
Expectations are that LLCs will build from 3,000 new homes a year to 5,000 new homes within say five years, while villages will grow from 3,500 new homes to 7,000 to 10,000 a year by 2030 – just 8 years away.
In that eight years the active LLC residents will also be less active and the operators will be seeking solutions similar to retirement villages to support their residents. They will also have to change their revenue model as they will need additional cash to staff new ageing support services.
The marketing tussle meanwhile will be interesting to see as it unfolds – exit fees Vs no exit fees.
Our TV series goes to air on 22 October nationally on NINE. It looks fantastic and we will keep you informed.