A new report highlights the affordability of retirement village units across Perth at a time when house prices are out of reach for many homebuyers.
The reveals the cost of a two-bedroom unit in a retirement village in Perth is on average 47 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 Perth is $467,042, while the median price of houses in the same postcodes is $883,217.
- Retirement villages are effectively operating at full capacity in Perth, with just two per cent vacancy (tighter than the national average of 5 per cent).
- Residents move into a West Australian retirement village on average at age 74 and spend 10 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 West Australians.
“Affordable retirement communities aren’t just helping older people in Perth – 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 two per cent – the tightest in the country – which means these communities are effectively operating at full capacity,” he said.
“Given the number of Western Australians over the age of 75 will increase by 78 per cent by 2040, a tight vacancy rate is concerning news for consumers and the government.
“This means the West Australian 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, 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.
