Bay is country's retirement capital

Artists' impression of the new retirement village being developed by Summerset in Katikati.

The Bay has the highest proportion by population of retirement villages in New Zealand, according to Jones Lang LaSalle, with 16.4 per cent of the region's over-75s living independently in the region's 33 villages.

That compares to a North Island average of 11.7 per cent and a national average of 10.5 per cent.

About 10 per cent nationally of the over-75 population also live in retirement care facilities, and the percentage of villages now providing higher care services such as rest home and/or hospital care facilities has increased from 63 per cent in 2012 to 65 per cent last year, says Jones Lang LaSalle. Leading operators including listed companies Ryman, Metlifecare and Summerset Villages are increasingly providing for a continuum of care.

The continued growth in the Bay of Plenty market is reflected in the planned opening at the end of this month of the village centre for a new $80 million village that Summerset is developing in Katikati. When completed, the village will have a range of continuing care facilities, including independent villas and a 49-bed care centre providing rest home and hospital-level care.

"The Bay of Plenty is a retirement destination and I think you're probably going to get more people moving into the Bay and moving into retirement villages," said Summerset chief executive Julian Cook. "We expect to see a lot of growth in the region.

"And we felt the market in Katikati was a bit under-served."

John Collyns, executive director of the Retirement Villages Association, said the Jones Lang LaSalle figures, which cover development up to the end of last year, demonstrated the popularity of retirement living in the Bay of Plenty.

The increased penetration rate in the Bay of Plenty between December 2012 and December 2013 was quite marked and higher than the North Island and national averages, he said.

Jones Lang LaSalle said the penetration rate for the 75-plus age group had moved from 14.4 per cent in 2012 to 16.4 per cent in 2013 in the Bay of Plenty. That was higher than the North Island average increase of from 10.8 per cent to 11.7 per cent.

Those who opted against moving into a retirement village cited reasons such as disliking the right to occupy model, which reduced their capital, or simply did not feel they were old enough to make the transition, said Mr Collyns.

Place to call home
There are 33 registered retirement villages in the Bay of Plenty, from Whakatane to Waihi (excluding Rotorua), with around 2440 dwellings that are home to almost 3000 older New Zealanders in the Bay. An additional 1202 units across 15 villages are at some stage of the planning consent or construction process.