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The over-50s market is Australia’s fastest-growing demographic, and a developer has identified a $1.1 billion opportunity to meet their housing needs.
Until now, residential development firm AVID Property Group has focused exclusively on master-planned communities. But as skyrocketing living costs push Australians towards increasingly diverse housing types, the company’s offerings are about to change.
Over the next six years, AVID stated it will invest $1.1 billion in 14 land lease communities across the country, with six of these being new greenfield developments.
In total, the new land lease business – known as Vantage – hopes to oversee 3,800 individual sites, the majority of which will be based in South-East Queensland.
Residential land lease communities are a fast-growing alternative to traditional retirement villages, offering a mix of owner-occupier and tenancy options.
In a land lease community, the owner of a residential home leases out their remaining land to a tenant, who can occupy their portion of the site with a mobile home. Manufactured homes, tiny homes on wheels and other moveable dwellings can be parked in the backyard, giving owners a second source of income and giving tenants access to community amenities.
Currently, land lease communities are designed almost exclusively for people over 50, and the sector is estimated to be worth $12 billion. The trend follows substantial growth in the senior population, with the number of Australians aged between 50 and 84 predicted to see a 28 per cent rise by 2040.
Anthony Kingsley, partner at Proprium Capital Partners, stated that the launch of Vantage “will help address structural issues within Australia’s housing market, which remains under pressure from the strains of high and increasing demand and limited supply”.
Cameron Holt, CEO of AVID, also noted the benefits for younger Australians, stating: “By making the move to land lease communities, the growing Baby Boomer generation of Australians can unlock new housing stock, freeing up their large family homes for the next generation of families.”
Holt stated that the move will have benefits for the company, as well as for clients, noting that the new land lease communities offering “will add further depth to AVID’s product offering and provide a fully integrated residential development and operational business”.
“With the addition of land lease communities to our portfolio, there is now an AVID housing offer suitable for a broad range of customers – no matter their stage of life, from first home buyer to empty nester.”
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