Retirement village operators

[bull....]

Well that told ya Bull! 藍
It will be interesting if new players look at takeovers. Private equity particularly that can see the opportunity of reducing costs etc. and ride out the cycle.

yes be interesting , sales will enable valuations to be applied to the nz RV sectors as a guide.

[bull....]

An unlikely coalition of New Zealand voters are backing Housing Minister Chris Bishop’s mission to bring down house prices

https://www.interest.co.nz/property/...shop%E2%80%99s

wow re-sale gains might be very limited if bishop succeeds - its not surprising RV's all near lows. might all even go lower as cashflow dry's up more

[bull....]

House prices need to fall 'a further 16%' to become affordable

Housing Minister Chris Bishop caught attention last week when he said house prices needed to drop

https://www.rnz.co.nz/news/business/...ome-affordable

[winner69]

Stats NZ today

1,704 retirement village units consented in the year ended May 2024 which was down 47 percent

So sector cutting back

[troyvdh]

bull.That house prices need/will to fall surely will not surprise anyone (apart from that property guru/zealot Ashley Church Talkback Radio).

But surely folk who need to move into a retirement entity will still move yes ?

[Valuegrowth]

House prices need to fall 'a further 16%' to become affordable


Housing Minister Chris Bishop caught attention last week when he said house prices needed to drop

https://www.rnz.co.nz/news/business/...ome-affordable

I’m really happy about Housing Minister Chris Bishop’s positive thinking. The biggest household expenses worldwide are rent and mortgage payments.

https://www.statista.com/statistics/...ing-worldwide/

House-price-to-income ratio in selected countries worldwide in 4th quarter 2022, by country

https://rep.infometrics.co.nz/wellin...-affordability

[bull....]

bull.That house prices need/will to fall surely will not surprise anyone (apart from that property guru/zealot Ashley Church Talkback Radio).

But surely folk who need to move into a retirement entity will still move yes ?

yep people who can afford it will move into a retirement village still , if thats there choice.
If house prices fall 16% say as per article what might happen is some people may no longer be able to sell and move into a retirement village esp if RV businesses held there prices at same level as today.

[bull....]

Stats NZ today

1,704 retirement village units consented in the year ended May 2024 which was down 47 percent

So sector cutting back

yep and the big cut back in builds means cashflows will be significantly less in time from new builds but re-sales will become more important. ie less profit and probably no div's due to pullback in development profits.