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Registered retirement village growth - recent trends

The first Baby Boomers turned 60 in 2006, signalling the start of a 20-year period when a huge wave of New Zealander's would reach the age of retirement. As medical breakthroughs enable Baby Boomers to live longer, they will create an increasingly powerful demand for more retirement villages and aged care facilities.

Detailed below are the key trends in the retirement village sector, the information is based on Statistics New Zealand February 2015 population projections, international property consultants Jones Lang LaSalle (JLL) New Zealand Retirement Village Database Whitepaper (December 2015) and other industry reports

​New Zealand's Aging Population Forecast

• The aging population is leading to a growth in the retirement village sector.
• Retirement village living is also becoming more attractive for many senior New Zealander's , due to added security and opportunities for socialisation.
  
• Many retirement villages now have onsite aged care facilities and other health related support services which allows residents to 'age in place'.

Growth in the Retirement Village sector

 Jones Lang Lasalle;
13 New Retirement Villages required every year for the next 20 years 
​

   The reasons for the strong growth in the retirement village industry include;

• Grey Tsumani - baby boom which started in 1946 at the end of the Second World War. In 2016, the first of these post-war baby boomers turn 70
  
  
• Growing popularity of retirement village living. At the end of 2015 around 12% of the over-75 population chose to live in a village; this is an increase from 10.5% at the end of 2013 and up from 9% at the end of 2012
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• Retirement Village living is affordable in comparison to the local residential market
  .
• Parents living with their children is declining in popularity

Opportunity for Senior Trust

​The Potential Demand For Retirement Village Units Between 2018 to 2043 Is Detailed Below

Additional demand from 55,336 residents and 42,566 units
Or 284 villages with the average unit count of 150
On an annual basis this equates to 1,703 units  or 11.4 villages ​

To meet this target approximately 5 of these villages will need to be delivered by independently owned villages.

Senior Trust is focused on supporting experienced, skilled independent operators with proven capability with the funding they require to meet the growth in the retirement village sector. This demand for capital will underpin the sustainability of the premium income returns enjoyed by Senior Trust investors.

​New Zealand Retirement Village Database Whitepaper (December 2015)

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