Finance must be a consideration before deciding to move into a retirement living lifestyle.

The annual village PwC/Property Council Retirement Census, released on Tuesday, stated that the price of the average two-bedroom Independent Living Unit (ILU) increased by 8.3% from $516,000 to $559,000 over the 2023 calendar year.

Over the same periods, national house prices only rose by 1.1%, according to the Census. CoreLogic states house prices rose 8.6% in 2023.  

However, ILUs in retirement villages cost just 57% of the median house price in the same suburb.

If the contract includes capital gains, ILUs achieved a compound annual growth rate of 4.7% over the past six years which indicates they are a stable form of investment relative to residential properties based on historical data, according to the census, which is from information supplied by 63 retirement living operators with a total of 862 villages.

For example, the 197sqm two-bedroom, one bathroom house in Hallett Street, Adelaide (main picture), is for sale through Harcourts with a price guide of $980,000 to $1,020,000.

The owner may look at Holdfast Gardens Retirement Village in Camden Park with the minimum price of a home $560,000 and a maximum of $600,000.

If the homeowner bought in Holdfast Gardens Retirement Village, they would have a substantial amount of savings, which they may use for whatever their heart desires.

Five benefits of retirement living are many:

  • Connection and connectivity;
  • Low or no maintenance;
  • Independent living for longer;
  • An active lifestyle; and
  • Safety and security.

The Census also stated the average age of entering retirement living is 75 years, with the average stay nine years.