The current housing and affordability conversations often centre on first home buyers, but the needs of downsizers and older Australians are equally important.
The Land Lease Community (LLC) market serves more than 130,000 senior downsizers across the country. LLCs enable residents to own their homes while leasing the land; allowing them to comfortably downsize to a low maintenance lifestyle while remaining close to family and friends.
LLCs support downsizing for the older generation while releasing larger housing stock for first home buyers and growing families. This, in turn, enhances overall housing supply and affordability. Developers have recognised this trend, as shown by a rising number of recent LLC transactions. Two particularly significant recent sales by RPM Transactions & Advisory (T&A) team took place in Colac and Charlemont – both evidence of the increasing traction and long-term development potential of LLCs.
In Colac, the sale of an 8-hectare parcel of land at 1-59 Rifle Butts Road demonstrates the viability of LLC and retirement sites in regional Victoria. The transaction attracted interest from both Victorian and interstate buyers, highlighting the broad appeal of these projects. ID_Land also contributed to this growing pool of interest, purchasing 439 Boundary Road Charlemont for its Next Living brand.
Our T&A division transacted both sites off-market, and the team is working with developers across Melbourne and regional Victoria to identify more sites for this niche land use. The division leverages detailed land research and data-driven insights to guide developers in making informed decisions – boosting their confidence in the evolving market.
Historically, the LLC market has been controlled by a few groups, but there is now an influx of demand from new entrants and interstate groups. These newcomers see the potential in Victoria’s rapidly growing greenfield sector.
T&A’s solid reputation within this niche market stems from its close work with developers; offering transparency and guidance throughout the process and utilising its proprietary mapping data to identify prime opportunities for future LLC projects. With several off-market processes in progress and more campaigns in the pipeline, this work highlights the potential for LLCs to address housing needs while shaping the future of Victoria’s greenfield sector.
This article references findings from our Q1 2024 Victoria Greenfield Market Report.