November 2016
2016 PwC/Property Council
Retirement Census
The PwC/Property Council Retirement Census is the most comprehensive aggregated data source on retirement villages
in Australia, covering the physical characteristics of villages, ownership details, business attributes and demographic data.
The Census is based on data which was collected from Property Council retirement living operator members and other
contributors and analysed by PwC.
We are proud to once again be partnering with the
Property Council in our third annual Retirement Census.
This year has again seen an increase in participation,
enabling more robust information for the benefit of the
entire industry.”
A strong sector needs credible research in order to reflect,
plan and grow. I encourage village operators, investors and
government to use the Retirement Census in their business
decision making.”
- Ken Morrison, Chief Executive
Property Council of Australia
- Tony Massaro, Partner
Real Estate Advisory, PwC
Contributor profile
Contributors by
villages
Snapshot of the data
Contributors
by units
Not for Profit
33%
Not for Profit
16%
53,000+
92%
For Profit
67%
For Profit
84%
Visit retirementliving.org.au/census to
participate in the 2017 Census
65%
retirement units
participated in
the Census
of residents
are female
80 years
Average age of
current residents
24 years
75 years
Average occupancy
of villages across
Australia
Average village age Average age
of residents
entering villages
7 years
6%
Over 70%
of ILUs*
are two bedroom
configurations
Average time
residents have
lived in the
village
Most common first
year percentage
for deferred
payments
*ILUs – Independent Living Units
Access more retirement living research by the Property Council by
visiting retirementliving.org.au/research
2016 PwC/Property Council Retirement Census
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Village snapshot
Five most common village attributes
ILU breakdown based on configuration
1%
Community
Centre 92%
11%
16%
Studio
1 bedroom
2 bedroom
3 bedrooms
or more
Emergency
Call System
91%
72%
Organised
Community
Outings &
Activities 86%
Bathroom configuration for
two bedroom ILUs
72%
27%
Library
82%
1%
1 bathroom
Visiting
Health
Professionals
1.5 bathroom
2 bathrooms
or more
78%
The two bedroom one bathroom configuration remains
the most commonly available product.
Attributes by age of village
100%
80%
74%
60%
40%
47%
53%
41%
59%
27%
13%
20%
0%
82%
76%
71%
Gym
Cinemas
Less than 10 years Old
Pool
Resident
Communal Garden
Pets Allowed
Greater than 10 years old
Newer villages established in the last ten years are providing a variety of facilities including gyms, cinemas, pools and
communal gardens which can attract a more active and independent demographic.
2016 PwC/Property Council Retirement Census
2
Resident snapshot
10
7
8
7
7
Average resident age and village
age (years)
9
8
8
6
4
2
0
Australia
NSW &
ACT
Vic &
Tas
Qld
WA
SA
Average resident age on entry into
village (years)
75
80
75
76
75
74
75
70
60
Average age of resident currently
in village (years)
Average current tenure of
residents (years)
100
95
90
85
80
75
70
65
60
55
0
10
20
Village Age (years)
30
The average age of residents in a village increases with
village age before stabilising as the village approaches
15-20 years old.
50
40
30
20
65%
10
0
Australia
NSW &
ACT
Vic &
Tas
Qld
WA
residents are female
Percentage of Residents
Current resident age (years)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
65%
SA
40%
31%
25%
35%
35%
4%
less than
65 y.o.
residents are male
65 to
less than
75 y.o.
75 to
less than
85 y.o.
Resident age bracket
85 y.o.
and
greater
While traditionally the target demographic has been
described as 55+ years old, it is clear that the age
of a typical retirement living resident has shifted
significantly, with the average age of new residents
being 75 years old in 2015. In fact, in this year’s
Census data, only 4% of residents are younger than
65 years old. This change in demographic is important
to note, particularly in forecasting timing of potential
future demand.
60%
60%
ILUs occupied by single resident
40%
40%
ILUs occupied by couples
2016 PwC/Property Council Retirement Census
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Affordability
Average two bedroom ILU price compared to median
house price in the same postcode1
Average price difference between two bedroom ILU
and postcode median house price
Average two bedroom ILU as a % of postcode median house price
Australia
67%
Sydney Metro
$254,000
45%
Rest of NSW
$774,000
61%
Canberra
$199,000
66%
Melbourne Metro
$177,000
65%
$323,000
Rest of Victoria
Brisbane Metro
79%
Rest of Queensland
$224,000
76%
Rest of WA
76%
$198,000
$98,000
71%
Adelaide Metro
1
$82,000
$115,000
58%
Perth Metro
0
83%
20
40
$161,000
60
80
100
Postcode median data provided by CoreLogic.
ILUs on average remain affordable compared to the median price of houses in the same postcode. This is especially
prevalent in Sydney and Melbourne, both of which have experienced significant capital growth in the residential market.
Average 2 Bed ILU Price as a % of postcode
median house price
Changes to ILU/postcode median house price with village age
160%
Illustrative trend line
140%
120%
100%
80%
60%
40%
20%
0%
-
5
10
15
Village Age (Years)
20
25
30
On average, the cost of a two bedroom ILU remains lower than the median house price in the same postcode. However, ILUs in
newer villages are generally priced closer to the postcode median house price.
2016 PwC/Property Council Retirement Census
4
Fees and deferred payments
Monthly service fees by village
operator – single residents
Weighted Average Price
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$-
$409
$405
Australia
NFP
$431
Average monthly service fees are similar across the
different operator segments as service fees are charged on
a cost recovery (not for profit) basis. Fees cover costs such
as common area cleaning and insurance, which a resident
in private strata accommodation would also typically incur.
$381
For Profit
For Profit
Group Private Group Public
Maximum deferred payment at villagesMaximum Deferred Payment at Villages
The deferred payment structure varies from village to
village and operator to operator. Typically, the deferred
payment percentage will increase with tenure up to a
maximum capped amount. In this year’s Census, the
maximum deferred payment percentage for most villages
lies between 30% and 40%.
Cumulative percentage
of villages
100%
80%
75%
60%
40%
20%
0%
0%
20%
30%
40%
60%
Maximum Deferred Payment Percentage
Maximum year of deferred
Maximum
Year of Deferred Payment at Villages
payment at
villages
In this year’s Census, approximately half the villages reach
the maximum deferred payment percentage by 7 years,
with the remaining reaching the maximum percentage by
12 years.
Cumulative percentage
of villages
100%
80%
50%
60%
40%
20%
0%
0
5
7
10
12
15
Maximum Year Deferred Payment
2016 PwC/Property Council Retirement Census
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Other key findings
Two bedroom ILUs – National
average price Buy Back requirement (% of villages)
No
30%
2014
2015
$375,000
$385,000
Yes
70%
2016
$398,000
There has been moderate year-on-year average price
growth for two bedroom ILUs over the past three years.
Percentage of villages with aged care
in close proximity
Occupancy (%)
Village occupancy by region
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
92%
93%
92%
89%
70% of villages have a Buy Back requirement (combination
of legal requirement and voluntary contractual obligation).
This provides residents with confidence that on departure,
the operator will purchase back the ILU within a certain
period of time if a buyer is not found.
91%
90%
40%
30%
25%
34%
33%
35%
26%
18%
20%
17%
15%
8%
10%
5%
0%
Australia NSW &
ACT
Vic &
Tas
Qld
WA
SA
Village occupancy remains relatively high across the
various regions represented in this year’s Census.
Australia NSW &
ACT
Vic &
Tas
Qld
WA
SA
Only 26% of villages in the Census have reported co-located aged care or aged care within 500m.
PwC and the Property Council of Australia sincerely thank all data contributors for their participation,
and CoreLogic for providing median price data.
Notes:
When comparing previous Census numbers to this year, it is important to note that the number and diversity of participants has changed.
The term “Deferred Payments” is a more accurate expression for what is sometimes called a “Deferred Management Fee”.
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2016 PwC/Property Council Retirement Census
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