Retirement living operators’ confidence double the three-year average

The latest ANZ/Property Council Survey states the nation’s retirement living sector has strong confidence around capital value growth and construction activity levels over the next 12 months.

Operators are more confident about 12-month construction activity levels than the residential, office, industrial, retail and hotel sectors.

Confidence levels in capital growth (22.9 points) are almost double the three-year average since COVID-19 hit Australia’s shores in March 2020 (12.0). Construction activity sentiment currently sits at 46.3 points, up 10.6 points in the same period.

Retirement Living Council Executive Director Daniel Gannon warned operators state government reform processes could hurt the positivity.

“Industry confidence around Australia has improved over the past 12 months, but various state legislative reviews loom large on the horizon,” Daniel said.

As The Weekly SOURCE stated in an Opinion Article “Act or face the Consequences” last Tuesday, the reviews to the Retirement Village Acts in QLD, SA, VIC and WA focus on changes to Exit Entitlements.

 “This comes at a precarious time given the country is facing challenges around housing supply, affordability, cost and supply chain constraints. If these reforms make it harder for operators to build and operate age-friendly communities, it could place a handbrake on supply and dampen confidence at the worst possible time,” Daniel said.

“Importantly, our industry offers a trifecta of opportunity – superior housing outcomes for senior Australians, more housing supply, while delivering significant efficiencies for State, Territory and Federal Governments.

“However, investment conditions and confidence can be strengthened or eroded by legislative frameworks around the country.”