Sydney Retirement Projects Join Pipeline as Shortage Bites

Developers interest in the ongoing potential of aged care continues with a duo of new projects put forward in NSW as a report shines a light on affordability in the sector.

In Blacktown, St Maurice Aged Care has submitted plans to turn its previously approved mixed residential development at 54-56 Kildare Road and 1A Carinya Road into a retirement living facility. 

In 2017, a seven-storey development was approved for the site. 

That project included a ground-level medical centre, restaurant and takeaway food premises with senior housing on ground level to level two, and the remainder of the floors for residential. 

However, the latest development application for the site proposes seniors housing only. 

Under the McNally Architects-designed plans, ab existing low-density residential building on the site would be demolished to make way for the new building, which would include three basement car parking levels, 42 residential aged care beds and 36 assisted living and independent living units.

The project would retain the non-residential uses for the shoptop site, with ancillary retail and commercial uses including wellness centre (21sq m) hair salon (18sq m), café (35sq m), and 62.2sq m medical centre.

St Maurice said the project remained consistent with the State Environmental Planning Policy which “incentivises density for seniors housing on sites where residential flat buildings and shop top housing are permitted”.

▲ National retirement village occupancy has remained steady at 90 per cent, which represents almost full capacity, according to PwC.

Meanwhile, in the Northern Beaches of Sydney, a seniors-focused development is being planned for 37-43 Hay Street, Collaroy, 20kms north of the Sydney CBD.

Under the proposal, existing homes on the site would make way for 11 three-bedroom independent living units over a basement level of car parking.

Designed by Popov Bass Architects, each master bedroom includes a walk-in robe and ensuite, with open-plan kitchen, living and dining areas, and a paved terrace or balcony.

Many of the dwellings comprise a ‘flexi’ space to provide options to future occupants to meet their needs, the developers said. 

While the move to invest in higher-quality senior living is nothing new, these projects come as a report reveals the affordability gap between retirement units and the traditional real estate market has widened. 

The 2022 PwC and Property Council Retirement census found that the average cost of two-bedroom independent living unit (ILU) in a retirement village grew by 6.6 per cent during the 18 months to December 2022 to $516,000, while national house prices during the same period rose by 26 per cent to $831,900. 

The report also revealed that the three-year development supply pipeline of retirement units fell by more than half to 5100 homes compared to the previous forecast of 10,500 homes. 

Supply is forecast to slow in the sector, where legislative reviews are under way in five states.

The reviews will take a close look at sector business practices, financial transparency and accountability.

 “If governments make it harder for operators to build and operate retirement communities, the supply clamp will tighten further on a sector that we know offers an affordable and bespoke offering for older Australians who simply can’t keep up with the traditional market, which is becoming increasingly unaffordable to rent or buy into,” Retirement Living Council executive director Daniel Gannon said.