Retirement living village operators have expressed concerns a lack of clarity on the timing of state reforms puts the progress of crucial developments at risk.
Retirement living village operators on a panel today expressed concerns a lack of clarity on a timeline with state reforms puts the progress of vital developments at risk.
The Property Council of Australia panel discussed the impact of the state’s Retirement Villages Amendment Bill 2024, with some of the changes set to rollout from July 1 this year.
The bill aims to balance the interests of residents while supporting operators, but RAAFA WA chief executive Michelle Fyfe fears the uncertainty surrounding when the rest of the changes will be implemented has stalled new developments.
“The problem is when it becomes so difficult that it stifles development,” she said.
“Legislative reform has to both care for the residents, but I think it also needs to encourage development by operators and at this point in time we’re all just sitting back waiting.
“That doesn’t help that pipeline of people that want to move.”
Leeuwin Capital Partners partner Mark Offenburg said this uncertainty causes lenders to pull back.
“What will end up happening is it becomes more restrictive that access to capital and support of the sector,” he said.
“Particularly in the aged care sector, it always seems to be playing catch up from a viability point of view.
“Changes come through that immediately in the short term can cost and then retrospectively there’s a bit of change on the income side.
“You’re forever chasing the tail, and that obviously feeds into banks and lenders’ comfort with lending into that sector.”
With new quality developments, Mr Offenburg said appetite from investors would follow.
But the panellists said a large amount of projects are redevelopments of old retirement living assets.
These redevelopments of existing sites proves a lengthy process, according to Hames Sharley associate director Gary Mackintosh.
"Some of the ones I've been involved in, you start designing, and then it's only about four years later that that something might occur," he said.
"There's a long time period that you need to factor in and consider."
Amana Living chief executive Stephanie Buckland suggested putting aged care projects through the state’s significant development pathway to speed things up.
“If I had a wish, and I did actually mention this to one of our state government ministers the other night, is could we look at aged care and retirement living as state significant development,” she said.
“They are a key part of the housing equation, and they really have the opportunity to make a significant impact in both the health system and the overall housing crisis.”
WA's retirement living reforms consist of a raft of changes, including new disclosure requirements, the timely payment of exit entitlements or property buybacks for former residents, and stricture rules on capital works.
