Retirement Villages : Best Practice Planning

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Retirement Villages Best Practice Planning

• A Developers Perspective
• Peter Inge
• August 2008

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Retirement Living in Australia

• Retirement living industry has evolved
  considerably since the 1960s when church and
  charitable groups first introduced housing for
  the elderly
• Private groups have since entered the industry
  and employ a resident funded model
• The resident funded model provides a lifestyle
  option for independent people, with community
  facilities, on site management, maintenance and
  security

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Retirement Living in Australia
A Retirement Community is
A Retirement Community is not

• A neighbourhood for over 55/60s
• Similar minded people
• Community like facilities
• Community and companionship
• Low maintenance
• Independence and privacy

• A supported residential service
• An aged care facility
• An old peoples home
• A special accommodation home
• A hostel

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Retirement Model in Australia

• Available to residents aged over 55 years
• Resident pays for retirement unit (purchase price
  / lease premium / loan)
• Resident resides in unit and has non exclusive
  rights to community facilities
• Resident pays a weekly service fee
• On departure, resident pays a deferred management
  fee / exit fee / departure fee (DMF)
• DMF based on length of stay, usually a fixed
  each year applied to the resale price of the unit

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The Emergence of the Medium Rise RV

• Traditional
• Broad acre
• Typical site c 5 to 8 ha
• 125 to 200 villa units
• Community Centre
• Garden areas and open space
• Can certainly be bigger but not too much smaller
• Well located
• Public transport
• Shops
• Sense of neighbourhood

• Medium Rise
• Infill sites
• c4000m2 to 20000m2
• Minimum c60 apartments
• At least 2 b/r
• Query diversity of housing if no one wants to
  live there
• Cater for the target market
• Costly to develop
• Generous community facilities
• Well located
• Absolutely critical

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All developers are not the same!

• Normal Developer
• Maximise financial return
• Maximise yield
• No post completion interest
• On to the next one
• Misalignment of interest with end user

• RV Developer
• Long tail asset
• Greater returns in management
• Skinnier development margins
• Delicate balance between yield and amenity
• Maximising amenity means greater price growth
• Greater price growth means greater revenue
• Clear alignment of interest
• RV needs to look great not just now but forever

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RV Planning issues

• Some Myths and Misconceptions
• Grey ghettos
• Solution? Forced community integration
• Compromising security
• Boundary fencing is important
• Traffic/Cars
• Always less than you think and decreasing over
  time
• Solution? Access to public and private transport
• Village bus service
• Burden on Local Government infrastructure
• Majority of residents are locals
• More efficient service delivery

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The Future - Shifting the Burden

• Resident funded RVs reduce community
  responsibilities and should be encouraged
• Less usage of HACC, CACPs funded aged care
• People prefer to be independent
• Planning protections/restrictions need to assist
  controlled RV development
• Example NSW SEPP (Seniors Living)2004
• Site Compatibility Certificates
• Use of covenants in Government land sales
• Example Vaucluse High School
• Positive must be seniors living
• Negative Cant be school

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MORNING TEA 10.45am 11.00am