While it has taken some hits as a result of the financial downturn, the retirement industry is still in a relatively strong position according to property services firm, Jones Lang LaSalle.

The group’s research found that the number of villages in Australia has grown by four per cent in the past year.

At the same time, the number of retirement dwellings has risen 5.5 per cent, rising from 105,300 to 111,200.

But despite the increase in village stock, the number of people living in retirement developments has not kept pace.

According to the Jones Lang LaSalle data there has only been a 3.1 per cent increase per annum in village residents over the past three years.

The group’s director of health and aged care attributes this to the slowdown in the broader property market.

“This slower rate of growth has also been compounded by the loss of confidence amongst retirees created by the uncertainty surrounding the current economic climate,” he said.

But Mr Jones is confident that the sector will experience a surge in demand when the global economy begins to improve.

Mr Jones’s research also reveals that although the number of development applications for new villages is down, applications for village expansions remain steady.

Another interesting trend to emerge is the rise in proposals for serviced apartments which have more than doubled in the past 12 months.

“The implication is that units offering some level of ongoing care and assistance are considered to be the most suitable in the current climate as they target an older market demographic who are less likely to be influenced by the price they might receive for their home,” said Mr Jones.

“That is, their decision to move into a village is driven more by the need for assistance and support than by the community lifestyle.”