Why invest in Retirement Villages

The average age of those entering a retirement village is 73. NZ has an ageing population, with the numbers of those aged 75+ expected to treble by 2043. Not only is the number of people over the age of 75 rising but an increasing percentage of retirees are choosing to live in retirement villages. In the 4 years from 2012 to 2016 the percentage rose from 9.4% to 12.4% The Resident numbers are growing significantly, up 49% from 24,561 in 2012 to 36,618 in 2016.
Source: New Zealand Retirement Village Database November 2016 Produced by JLL.

The Retirement Village Database shows the main operators are all expanding strongly. However the view of KPV is that a 12.4% participation is low, and is intrinsically related to the loss of equity which residents and families identify when considering the traditional model.

KPV is confident in its ability to attract greater numbers of residents to their villages. It has proven that its commitment to service and quality enables it to compete with the institutional providers, but by allowing residents to retain the capital gain in their unit upon sale, KPV believes it can access a greater share of the 12% who now choose to live in a retirement village. Additionally, we believe the offer will appeal to many of the remaining 88% of the 75+ population who currently do not choose to live in a retirement village.

The KPV Next Generation model will put the option of living in a retirement village within reach of more retired New Zealanders.