Business View Oceania | December 2019

29 30 BUSINESS VIEW OCEANIA DECEMBER 2019 BUSINESS VIEW OCEANIA DECEMBER 2019 THE RET I REMENT V I LLAGES ASSOC I AT ION OF NEW ZEALAND It’s no surprise to anyone that New Zealand, along with most other Western and many Asian countries, is facing a rapidly-ageing population. Last year alone the number of 75+ year olds in the country increased by 3.9%, or 11,620 people. The number of 75+ people is expected to grow from 306,730 this year to 783,600 by 2043 and make up 13% of the total population. It’s against this backdrop that retirement village operators see themselves as part of the solution. The PwC report noted that there are 82 (out of 401) registered villages that are designing, consenting or building 4,721 units, plus a further 81 registered brand-new villages building 12,163 units. A total of 16,884 new units coming on stream, and, together with the 10% or so of existing units that are re-sold each year, make a substantial contribution to relieving the housing shortage across the country. The report also found that the annual percentage growth in retirement village units has been outpacing the annual percentage growth in the overall housing stock, as the figure below shows. Housing density The report also looked in some detail at the density of retirement village housing, reinforcing the fact that villages are efficient users of land. A new village can result in improved land use intensity and a higher housing density compared with conventional residential developments. This is particularly true for mid to large-sized Auckland-based villages, reflecting the higher land cost there compared with other centres. PwC undertook some analysis of this, comparing 4,736 units across 18 Auckland villages with 11,753 units across 53 villages elsewhere in NZ. Unsurprisingly, the analysis shows that Auckland villages have a higher density of units and residents than the national average. Some of the larger Auckland villages are multi-level developments up to six stories high. Such multi- story development is less common elsewhere in the country. PwC then looked at how villages compare with conventional residential developments based on the Auckland Unitary Plan. Villages’ higher density of both units and people supports the Unitary Plan’s intention to improve residential density in the mixed housing suburban and mixed housing urban zones. The following table compares the Unitary Plan’s housing density with retirement village density. John Collyns, Executive Director NZRVA