The new Summerset St Johns retirement village in Auckland: first residents arrived last October. Photo / Summerset Group
The new Summerset St Johns retirement village in Auckland: first residents arrived last October. Photo / Summerset Group
Listed retirement village giant Summerset Group sold its highest number of units in a year, recording 1238 settlements, up 12% during 2024.
But 75% of the completed units in its new $450 million East Auckland apartment village are yet to be sold.
Scott Scoullar, chief executive, today released figures forthe quarter to December 31 but he also gave total sales for the 2024 calendar year.
“Summerset Group is pleased to report 361 sales for the quarter ending December 31, 2024, comprising 169 new sales and 192 resales,” a notice to the NZX said.
The business recorded 361 sales of villas, apartments and hospital beds in that three months.
But it was in resales - when a resident leaves a unit - that the company set a record.
Total settlements in Q4 were on par with the same period in 2023 when there were 360 sales but the company made its highest resale quarter in the three months to December 31, 2024.
All that was achieved in the face of the ongoing housing market downturn, with national residential prices dropping and volumes of unsold stock throughout many parts of New Zealand rising.
Summerset chief executive Scott Scoullar. Photo / Supplied
Scoullar said the latest quarter had an encouraging result, especially in such a challenging market.
“This is a positive result for both the quarter and the full year, the residential property market has been slow but despite this we’ve continued to grow,” he said.
“We’ve seen good demand, and we’ve managed to achieve a strong sales result in a difficult economic environment. It’s been very pleasing to see the strength of our resales, reflecting our growing number of fully completed and established villages, and we have a substantial portfolio of both quality new and pre-occupied units around the country that continue to appeal to our target audience.”
The milestone in the quarter was the completion and opening of the first stage at St Johns village in October, the NZX statement said.
Around 60% of the residences are completed there. The main centre including pool, café, bar and movie theatre are operating.
Prime Minister Christopher Luxon opened that $450m project a few weeks ago.
Sales in some new retirement villages have been slow lately.
Summerset today revealed 75% of completed units at St Johns were unsold.
“Summerset St Johns now has 25% of the village units completed to-date under contract across independent living, serviced apartments and care suites,” it announced today.
Summerset villages at Pāpāmoa, Te Awa and Richmond recorded strongest new sales for the December quarter.
“Resales were led by Casebrook and Avonhead, however Summerset still continues to see a good balance of sales throughout the country with 59% of sales from outside Auckland, Wellington and Christchurch.
“In Australia, our Cranbourne North village continues to perform well as new stages of homes are released,” the company said.
Scoullar said the company had a strong pipeline of committed sales contracts heading into 2025 across its New Zealand and Australian villages.
The North Shore land just sold at Belmont on Auckland's North Shore. Photo / Summerset Group
Last month, it was announced that Ngāti Whātua Ōrākei had sold a block of North Shore waterfront land to Summerset in a deal giving it company shares, and employment and education opportunities for the hapū.
The 5.7ha block of land, once owned by the Royal New Zealand Navy, was sold to Ngāti Whātua Ōrākei last decade under its treaty settlement.
As part of the deal, Scoullar said there would be “education and employment opportunities for hapū, facilitating the start of a long-term partnership” on the Belmont site.
Scoullar said his company had bought the land outright.
That is different from what Ngāti Whātua Ōrākei did with Ryman Healthcare on the Wakakura block, where Ryman leased it long-term to that listed retirement business. Summerset full-year result is out next month.
Shares are trading around $12.99, up 24% annually. Summerset’s market capitalisation is $3 billion.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
