Healthcare and retirement living is a sector that investors cannot afford to ignore, according to research from international property group, Colliers.
Colliers associate director of research, Tom Duncan, said the sector was set to grow on the back of Australia’s aging population.
“The healthcare and retirement living sector has been undergoing a period of transformation, moving from boutique to corporate in the face of a continued shortage of stock and growing demand,” he said.
“Private and family operators are increasingly being consolidated and concentrated amongst fewer larger players in recognition that size and scale support greater profitability, smoother cash-flows and reduced risk.
“The outlook for the sector is positive, with increasing activity and market uptake in the medium-term.”
While historical transactional activity in the sector has been irregular, making it difficult to determine pricing for retirement villages, Duncan said Australia’s changing demographics supported their long-term viability and reinforced the strong case for investment.
