Thinking of Buying a Retirement Village Business in Australia? Here Are 3 Vital Questions to Ask

The Australian retirement village industry is valued at $6.1 billion in 2024, with an expected annual growth rate of 3.3% through 2030, reaching $7.2 billion.

With 17.6% of the population aged 65 and over—set to rise to 19.2% by 2030—demand for retirement accommodation is increasing.

Despite this, only 10% of Australians over 65 currently live in a retirement village, creating opportunities for expansion.

The rise of luxury developments, home-care services, and urban vertical villages is reshaping the sector.

However, financial viability, regulatory compliance, and competitive positioning must be carefully assessed before investing.

1. Is the Business Financially Stable and Profitable?

Why It Matters

Retirement villages generate revenue through accommodation charges, service fees, and in-home care offerings.

Industry-wide profit margins stand at 4.2%, with financial sustainability influenced by funding models, occupancy rates, and operational costs.

What to Check

• Revenue trends & profit margins – Review financial records from the last three to five years to assess financial stability.
  
  
• Occupancy rates & demand forecasts – Compare with industry benchmarks and analyse demographic trends in the area.
  
  
• Cost structure & labour expenses – Labour accounts for 37% of revenue, impacting service delivery and profitability.
  
  
• Funding models & payment structures – Assess whether revenue is driven by deferred management fees, service charges, or rental models.

2. How Competitive is the Business’s Market Position?

Why It Matters

With growing demand for senior-friendly accommodation, villages that offer quality services, strong locations, and integrated healthcare support attract higher occupancy rates.

Urban and luxury developments are expanding, but affordability remains key for many retirees.

What to Check

• Location & proximity to amenities – Evaluate accessibility to hospitals, shopping centres, and lifestyle facilities.
  
  
• Independent vs. corporate ownership – Determine if the village operates independently or benefits from corporate branding and economies of scale.
  
  
• Competitive positioning & resident satisfaction – Analyse customer feedback and industry reputation to assess demand.
  
  
• Future development & expansion potential – Identify opportunities for adding wellness programs, in-home care, or smart technology integration.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters

Consumer expectations are shifting toward wellness-focused retirement living, home-care integration, and eco-friendly communities.

Villages that embrace sustainability, smart technology, and flexible funding models will remain competitive.

What to Check

• Sustainability & smart technology adoption – Assess eco-friendly initiatives, solar power, and telehealth services.
  
  
• Regulatory compliance & legal considerations – Review state-specific retirement village laws and ARVAS accreditation requirements.
  
  
• Diversification of services & revenue streams – Identify opportunities to offer allied health partnerships, fitness programs, and lifestyle experiences.
  
  
• Long-term viability & demand stability – Evaluate growth in the 70+ population and projected demand in the region.

Ready to Invest in a Thriving Retirement Village Business?

With a growing ageing population, increasing demand for age-friendly housing, and evolving service models, the Australian retirement village industry presents a long-term investment opportunity.

However, financial sustainability, competitive positioning, and regulatory adherence are key to long-term success.

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