Australia’s largest retirement village operator had its portfolio of 72 villages marked down by valuers by 6% (approximately $84M) in response to COVID. Resales across their 12,858 village homes were up 3.8%, from 842 to 874 units in the 12 months, but this was achieved with softer pricing.
Also, of interest to village operators is the fact that resales are not keeping up with new vacancies. The average occupancy is 11 years, which will generate 9% turnover a year on 12,858 homes, or 1,157 units. Lendlease settled on 874 homes, a deficit of 283 homes. This has been consistent for each of the major operators for the past five years.
With buybacks now in progress in many states it will be an increasing problem for private operators. This is before the country moves further into a depression where customers will find it increasingly difficult to sell their family homes at the prices they have been accustomed to.
Marketing and sales, one would expect, will become the focus of management.
The Weekly Source
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