Pacific Retirement Estates - Building Communities Where You Belong
At Pacific Retirement Estates (PRE), we're dedicated to leading the way in the senior living and RV industry. Our insights page is where we share our expertise, research, and predictions to keep you informed about the latest market trends, technological advancements, and investment opportunities and how we’re adapting with it all. Our aim is to not only inform but also inspire strategic decisions in this rapidly growing sector.
Key Industry Drivers:
● Ageing Population:
○ Australia's population aged 70 and older grew by 3.8% in fiscal 2023, outpacing overall population growth and underscoring the need for age-appropriate, over 60s, rewarding, comfortable accommodation.
● Government Policy:
○ Recent reforms in Australian policy reflect an evolving landscape that impacts the senior living industry. Our team understands how these changes present new opportunities and challenges for investors and operators alike.
● Technological Advancements:
○ Innovation in technology is reshaping the future of senior living. From smart home features, sustainable energy (inc solar power technology), to health monitoring systems, we explore the latest technological trends that are enhancing the quality of life for residents and streamlining operations.
● Economic Trends:
○ We understand the key economic indicators affecting the senior living industry, including household disposable income, growing cost of living concerns in major cities, and health expenditure trends, giving us a comprehensive overview of the current investment landscape and the ability to promptly adapt.
Industry Projections:
● Demand-Supply Analysis:
○ We’ve identified numerous gaps in supply, particularly in high-quality infrastructure, high-quality services, and purpose-built retirement communities. With an exceedingly ageing population and evolving consumer preferences, there is a significant opportunity for us to capitalise on and meet this growing demand.
○ The popularity of retirement villages in Australia is on the rise, with older Australians increasingly choosing retirement communities for their living arrangements. This trend is driven by the desire for sociable environments where residents can live among like-minded individuals.
○ The appeal of retirement villages is further enhanced by the rising property prices in Australian cities, allowing seniors to leverage their housing equity and move into more affordable, comfortable, spacious, and rewarding living communities.
● Market Growth Forecasts:
○ The senior living industry is on a steady growth trajectory, with IBISWorld reporting an annual growth of 1.6% from 2018 to 2023, expected to adjust to 1.0% from 2023 to 2028. This growth is underpinned by a combination of demographic shifts and an increasing focus on quality retirement living solutions.
○ A 1% annual growth rate continues to symbolise a positive trajectory, reflective of stable demand driven by demographic trends and an emphasis on high-quality services, all backed by an ageing population and a growing shift in consumer preferences.
○ This modest growth rate underscores the industry's resilience to economic fluctuations and its focus on enhancing operational efficiencies, investor returns, and service quality. It also indicates strategic growth through consolidation, contributing to long-term sustainability. Despite appearing modest, this steady growth is significant, showcasing the industry's potential for stable returns and long-term. Value appreciation in a sector that prioritises quality and sustainability over rapid expansion.
Strategic Growth:
● New Development Pipeline:
○ Our expansion projects are set to significantly impact the industry, offering modern, high-quality living options for seniors. See our media page or visit each village website to find out more about our planned projects and their potential to drive growth and meet the rising demand for senior living solutions.
● Innovation Initiatives:
○ At PRE, staying ahead of the curve is paramount. While details are forthcoming, our commitment to innovation ensures we adapt and thrive in a constantly changing industry.