[+] High-End Retirement Booming as Apartment Developer Moves In

When Sydney off-the-plan apartment developer Hyecorp moved into the retirement space “people thought we were crazy,” co-managing director and head of development Stephen Abolakian says. But the launch of Hyegrove, its retirement and aged care arm, alongside its marquee Heart of Willoughby development, proved an inspired move. It was a “perfect storm”. By linking up with Willoughby Legion Ex-Services Club, one of the biggest clubs on Sydney’s Lower North Shore, Hyecorp won access to a prime tract of land in the backyard of the family business’s headquarters. “It’s very different to what we do in some ways, but service is a big part of how we approach development, we’re a hands-on business and we don’t think that will change,” Abolakian told The Urban Developer. Hyecorp to Hyegrove The six-building Willoughby development, conceived more than a decade ago, is halfway through construction and due to launch next year. Being an established family-run apartment developer lent some experience to the process, while in other areas there was a learning curve. ▲ Hyecorp received approval for the development in 2021, and is hoping to complete the build by 2025. “We were originally approved for 120 apartments, with 24 non-retirement, normal off-the-plan, but in response to the market, we converted the entirety to retirement living,” Abolakian says. The Hygrove team also reduced the overall number of units to 111, amalgamating some to create larger apartments. “Because we’re the builder, designer [and] developer ... we can be nimble, and we can also do it quickly, in response to what people want because we don’t have to go through approvals of designers and builders.” The lower-care units were very much in Hycorp’s wheelhouse, but the aged care component proved more challenging. “The high-care suites were definitely a learning curve and we brought in some expertise to assist us with that,” Abolakian says. ▲ In collaboration with Willoughby Legion Ex-Services Club, the project will offer 2,000sq m of open space with memorial gardens. Hyecorp is also setting up an operating arm, rather than outsourcing operations, which will be led by Stephen’s brother Patrick. “Being a build-to-sell developer, you work hard on the project for seven or eight years, then it’s all sold, and you have to start again,” Stephen Abolakian says. “While [retirement] isn’t traditional build-to-rent, it’s a version of it, so we will be undertaking operating the business into the future. "We put a lot of blood, sweat, tears and risk into projects, but there’s something very different about working on this project for 15 years and staying connected with it.” Changing demographics Operators and developers are becoming more aware of the needs of changing demographics in the retirement space, and Hycorp is no different. “We have 65 per cent couples and 35 per cent single people moving into Willoughby,” Abolakian says, a marked change from decades gone by when people usually moved in after the death of their partner. “We have an average age of 80 for males and 77 for females. But whether you’re single or a couple, there is still a growing need for two and three bedrooms. Different couples have different sleeping arrangements, they might want grandchildren to stay over, or use a spare bedroom as a home office.” Continuum of care has been a phrase to watch in the industry , and is something Hyecorp has invested in. “What’s really important when there’s a lot of couples moving in, is that if you partner needs increased care more rapidly than you do, you don’t have to leave each other.” ▲ Like many successful communities, Reside’s Fairway Carindale project is tied in with local golf club facilities. Reside Communities chief executive and co-founder Glen Brown told The Urban Developer Retirement Limit Summit last month that was important to consider the needs of the incoming generation. “Ten years ago, 3 per cent of my customers were from the Silent generation [born between 1928-1946],” Brown said. “Five years ago, it was maybe 10 per cent. Now, particularly in the luxury developments, it’s about 75 per cent. They’ve all got these different views on life and how they want to succeed and enjoy life. “[The incoming] Baby Boomer generation has agitated their whole life for betterment. The Silent Generation [approach life] like ‘it’ll be right, it’s fine, we’ll live with that. We’ll raise our kids and we’ve done a great job’. “Baby Boomers throughout their whole life have wanted more, and are prepared to pay for more.” Keeping high-end So as we transition towards Baby Boomer populations, the new generation of incoming retirees will want more. Founding director of 9Springs Belinda Bentley told the summit adaptive amenities were key. “It’s even something as simple as business centres, because they’re still doing Zoom or Teams calls. They don’t want to be seen as old, they want to engage with other generations, and have that intergenerational connectivity and engagement.” ▲ Luxury Reside vertical development Esperance Hope Island offers penthouse apartments and access to resort facilities. At Hyegrove Willoughby, Hyecorp has also experienced these shifting needs and adapted its build–to-sell approach accordingly. “There are theatres, wine rooms, arts and crafts rooms, consulting rooms for when you have financial planners and lawyers or accountants,” Abolakian says. “We’ve got a full -time concierge on site, massive common areas and three rooftop decks, indoor pool, indoor gym, sauna, steam room, veggie gardens– there are a lot of amenities. “Our typical off-the-plan apartments just wouldn’t have this level of amenity.” But this is what retirees are coming to expect while wellness, the buzzword of build-to-sell as much of build-to-rent, is becoming even more important, according to Ingenia Communities executive general manager for development Von Slater. ▲Prices at Hyegrove Willoughby are up to $3.75 million for three-bed units. “We look at that idea of wellness and longevity, while we’re certainly not giving residents blood transfusions—not quite yet anyway—we certainly are building these wellness clubs. “One of the projects we’re working on with them has a huge wellness component—we have an ice room, mineral pools at different temperatures, and we’re engaging with wellness consultants on that journey.” Brown says it is a matter of approaching retirement living in the way we would want to live ourselves. “As we get older, we plan financially for how we get old, but we never plan how we can live well,” Brown says. “And we’ve got to. It’s not about existing, it’s about actually having a good time and living well.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] High-End Retirement Booming as Apartment Developer Moves In

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