Troy Churton, former Commission for Financial Capability retirement villages national manager shares tips on factors to consider. Video / NZ Herald
More than 53,000 people now live in New Zealand retirement villages, although some NZX-listed businesses are selling properties and adjusting expansion in the tougher market, a new study found.
Gavin Read, Auckland-based head of research at real estate agency JLL, today released the annual retirement village study which found that,by the end of last year, New Zealand had 41,111 village units in 470 villages.
About 1.3 people live in each unit, so around 53,444 people lived in those villages by the end of last year, the study found.
In 2022, New Zealand had 38,918 people in 452 villages, JLL said last August. By the end of 2020, JLL estimated 47,249 people lived in villages, up on 45,000 a year previously and 40,000 in 2019.
Most older people do not live in such villages. Even with a village population of 53,000 people last year, that is only 13% of the estimated 383,000 New Zealanders aged 75-plus, although the study didn’t say that.
Last week, the Retirement Commissioner reignited calls for the Government to change the law.
Retirement Commissioner Jane Wrightson wants documents simplified, chattel responsibility clarified, a better complaints system and exit provisions to be fairer.
JLL found Auckland had the most villages: 12,613 units in 106 villages which are homes to an estimated 16,397 people. That city also has larger villages compared to the rest of the country: 119 units per village.
Prime Minister Christopher Luxon opened retirement village The Foundation, developed and owned by Generus Group. Photo / Alex Burton
But some companies are not expanding as fast as previously, due partly to debt and the housing downturn meaning people find it harder to sell their homes to move to a village.
Oceania sold two Auckland villages and four sites and closed Nelson rest homes Otumarama and Whareama, which had 134 beds. But it also opened new upmarket St Heliers village The Helier.
Bupa sold three rest homes to New Aged Care: Rāhiri Lifestyle Care and Village, Waireka Care Home and Kauri Coast Care, JLL noted.
Yet Generus and Winton Land are developing new high-end villages, JLL said.
Plans for Northbrook Arrowtown in the Wakatipu area. Photo / consent application
Metlifecare is also expanding strongly, opening a new Pōhutukawa Landings amenities building and planning new ones on Gulf Rise and Fairway Gardens. It is also developing hospitals or rest homes within existing villages that don’t have them.
Winton’s Northbrook Arrowtown is planned to rise beside an 18-room boutique hotel and be within the popular new high-end Central Otago hospitality precinct Ayrburn.
Fletcher Living invested $19 million last year in its Vivid Living developments, settling the first new places at Red Beach and starting at Karaka.
Sanderson Group started building its 132-unit luxury village, the Matamata Country Club, JLL said.
Big-six operators are Ryman with 8.5% of villages, Metlifecare with 7.9%, Bupa with 7.7%, Summerset and Oceania each with 7.4% and Arvida with 6.8%. Non-big six owner/operators have 54.3% of villages, the study said.
Big-six businesses are 2.35 times larger by unit numbers, even though they only own 46% of villages.
The Bay of Plenty has the highest retirement village penetration rate at 18.4%. Auckland has 16%, Hawke’s Bay 14.8%, JLL said.
Of the 22,281 new units planned, 10,174 are under construction and the big-six operators own 47.2% of those.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
