The latest Procore/Property Council Survey reveals that confidence in retirement construction activity has dipped to its lowest level since December 2022, while capital growth expectations also experienced a downturn in the September quarter.
RLC Executive Director Daniel Gannon said despite the survey highlighting housing supply and affordability as the most critical issues for the federal and state governments, too much red tape can dampen development appetite.
"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," Mr Gannon said.
"This is alarming and unacceptable, with governments crying out for more housing supply on one hand, while seemingly holding it back at the same time," he said.
Mr Gannon said the survey reveals the retirement living industry boasts the strongest sentiment for construction activity compared to other sectors, and is greater than residential, office, industrial and retail combined.
"While the latest report plots a confidence downturn for a sector that already faces hurdles when it comes to developing new communities, the retirement industry still remains a beacon of positivity compared to other markets," Mr Gannon said.
"With the number of Australians over the age of 75 set to increase by 85 per cent by 2040, retirement villages can help alleviate the resulting problems associated with housing and health.
"Retirement village residents are 20 per cent less likely to require hospitalisation after only nine months living in one of these communities, which leads to 14,000 avoided annual hospitalisations across Australia.
"Compared to people in the broader community, residents are also 41 per cent happier, 15 per cent more physically active, five times more socially active, twice as likely to catch up with family or friends and have reduced levels of depression and loneliness.
"As a consequence, these communities are minimising the interactions older Australians have with GPs and hospitals, while importantly delaying entry into taxpayer funded aged care and saving the government $945 million annually as a result," he said.
RLC policy recommendations to improve planning systems across the country include:
- Establishing minimum land allocations for the development of retirement communities in under-supplied areas.
- Significant zoning or development bonuses should be offered to incentivise the development of retirement villages, akin to those given to social and affordable housing.
- State governments to establish clear policies for increasing age-friendly developments through the introduction of targets in strategic regional and metropolitan plans.
- Planning authorities should work with industry to identify high-need locations and ageing hot spots.
