A new report highlights the affordability of retirement village units across Sydney at a time when house prices are out of reach for many homebuyers.
The 2023 PwC-Property Council Retirement Census reveals the cost of a two-bedroom unit in a retirement village in Sydney is on average 59 per cent cheaper than homes in the same postcode.
The 2023 PwC-Property Council Retirement Census also reveals:
- The average price of a two-bedroom retirement unit in metropolitan Sydney is $914,424, while the median price of houses in the same postcodes is $2,245,438.
- Retirement villages are effectively operating at full capacity in Sydney, with just seven per cent vacancy.
- Residents move into a NSW retirement village on average at age 75 and spend 7.9 years living there.
Retirement Living Council Executive Director Daniel Gannon said the report shows the important role retirement villages play in providing affordable housing for older Sydneysiders.
"Affordable retirement communities aren't just helping older Sydneysiders - they're helping young homebuyers too," Mr Gannon said.
"When an older person or couple makes the decision to 'rightsize' into a home that is better suited to their ageing needs, they're injecting a bigger home back into the market for younger people."
Mr Gannon said a tightening vacancy rate means more supply is needed as the population ages.
"This report tells us that vacancy is now sitting at seven per cent - down from 11 per cent last year - which means these communities are effectively operating at full capacity," he said.
"Given the number of people over the age of 75 in New South Wales will increase by 65 per cent by 2040, a tight vacancy rate is concerning news for consumers and the government.
"This means the New South Wales Government needs to streamline planning systems to ensure more affordable homes in retirement villages can help accommodate this growing cohort."
Compared to people not living in a retirement village, research released in 2023 reveals residents are:
- 41 per cent happier
- 15 per cent more physically active
- Twice as likely to catch up with family and friends
- Five times more socially active
- And they experience reduced levels of loneliness and depression.
"This leads to reduced interaction with hospitals and GPs and generates $945 million in annual savings for the Australian Government by delaying entry into aged care facilities," Mr Gannon said.
