The 2015 Colliers International Healthcare & Retirement Living Report confirms the aged care sector is gearing up for major growth and massive demand over the coming decades as Australia’s population ages and demographic structures change.
The Colliers Report along with The Intergenerational Report reminds Australia our population is aging and services are already stretched thin, with demand for aged care & retirement living housing to sky-rocket in the future it begs the question; how well prepared are we to meet this future need?
The Australian aged care field is very disjointed. Single operators currently own around 63% of facilities which are strewn throughout regional areas and middle & outer suburbs. Into the future we should see some consolidation as bigger developers with more financing and sway begin to buy-up pricey land close to the city.
The surging demand has already caused some seismic shifts within the health care and retirement living sector. Smaller and independent operators are being muscled out as large; public corporations start taking over the market with ease (and building larger facilities) thanks to their ability to exploit economies of scale.
The 3 largest are Japara, Estia and Regis, all are listed on the Australian Stock Exchange and all are receiving plenty of interest.