Retirement living sector calls for planning reforms amid declining construction confidence

The Retirement Living Council (RLC) has called on governments to streamline planning systems to boost housing supply, as confidence in age-friendly construction activity hits its lowest point since December 2022.

The latest Procore/Property Council Survey revealed a downturn in retirement construction activity confidence and capital growth expectations for the September quarter.

RLC Executive Director Daniel Gannon highlighted the lengthy approval process for retirement village developments as a major concern.

“We know that 67 per cent of retirement village development applications take more than 365 days to complete assessment, while 23 per cent take more than 730 days,” Mr Gannon said.

He criticised the apparent contradiction in government policies, noting that while there are calls for increased housing supply, bureaucratic processes appear to be hindering development.

Despite the overall downturn, Mr Gannon emphasised that the retirement living industry still maintains the strongest sentiment for construction activity compared to other sectors.

“While the latest report plots a confidence downturn for a sector that already faces hurdles when it comes to developing new communities, the retirement industry still remains a beacon of positivity compared to other markets,” he said.

Mr Gannon stressed the importance of retirement villages in addressing future housing and health challenges, citing projections of an 85 per cent increase in Australians over 75 by 2040.

He highlighted the health benefits for retirement village residents, including reduced hospitalisation rates and improved social and physical activity levels.

“As a consequence, these communities are minimising the interactions older Australians have with GPs and hospitals, while importantly delaying entry into taxpayer funded aged care and saving the government $945 million annually as a result,” Mr Gannon said.

The RLC has proposed several policy recommendations to improve planning systems, including establishing minimum land allocations for retirement communities in under-supplied areas and offering development bonuses to incentivise retirement village construction.

The council also called for state governments to set clear policies and targets for increasing age-friendly developments in strategic regional and metropolitan plans.