Is this the most expensive retirement village in NZ?

Tuesday, 8 August 2023

Million dollar harbour views are just one of the features offered in a new luxury retirement village in Auckland’s Wynyard Quarter, but they do not come cheap.

NZX listed Winton Land Limited has branched out into the “later living” market, with its subsidiary Northbrook.

It had five villages under development around the country, but its vertical village on the waterfront in Wynyard Quarter was the first to launch.

The village would have 154 apartments, including 50 aged care suites, with five-star hotel service, and premium amenities.

Apartments ranged in size from one bedroom and one bathroom up to four bedrooms and 3.5 bathrooms.

Amenities would include a gym, heated pool, spa and sauna, salon, restaurants and bars, and a private marina.

Prices for one bedrooms started at $1.45 million, at $2.25m for two bedrooms, at $3.15m for three bedrooms, and $10.95 for four bedrooms.

The most expensive apartment was the four bedroom, 3.5 bathroom penthouse at $13.75 million.

Winton chief executive Chris Meehan said the vision was to design a unit for later living that was “like living in a five-star hotel with all your friends”.

It was a premium offering, but there was a market for it, he said. “We would never build somewhere if there was not three times the demand as there is the supply.”

Demand for retirement villages units has increased over recent years, and continued growth was expected.

In 2021, there were an estimated 48,736 residents, but the 75-plus population forecasts indicated there would be about 80,642 residents by 2033, according to JLL.

Northbrook director Julian Cook said they wanted to set a new standard in the retirement market, and offer something that was not currently available.

The Wynyard Quarter village would appeal to active baby boomers who wanted to ditch the hassles of maintaining a large property, and move to a central hub, he said.

“They want a place they can lock up and leave to travel, and the model we are offering gives them all that, along with a pathway to aged care, and more.”

There had always been a reasonable amount of luxury retirement villages in the market, Retirement Villages Association executive director John Collyns said.

He pointed to the Generus Living Group, and Summerset Boulcott and Monterey Park as examples.

Earlier this year, licenses to occupy a villa with sea views at Monterey Park were advertised for $3.4m. Apartments in The Foundation Parnell, a Generus village, have sold for between $3m and $4m.

But if looking at occupancy right agreement (ORA) prices that were over $1m, there had been an increase in the number around, he said.

Collyns said Northbrook’s prices were at the upper end of the luxury retirement market, but there was demand.

Operators had to build units in villages that their market could relate to, and that were needed, he said.

“Village prices tend to reflect the values of the freehold properties around them, so prices for luxury units in downtown, waterfront Auckland will be doing that.”

Most residents bought the right to occupy a particular unit in a village, which was known as an ORA, rather than buying the property outright.

That meant they did not receive any of the capital gains on their property, and when they left they were charged a deferred management fee, and sale fees.

Some villages, such as Fletcher Building’s Vivid Living, have adopted a model where they share a percentage of the capital gains with residents on sale.

But when a Northbrook resident sold, the balance of the purchase price, minus the deferred management fee of 30%, would be paid to them. Service costs would be pay-as-you-go.

Cook said interest in the Wynyard Quarter village was high, and about 1000 people had been through the showroom.

If people bought into the village now, they could occupy in 2027, he said.

Winton would also be redeveloping a 1.7 hectare site around the village, and building a 20 apartment complex behind it.

The other Northbrook locations were Wanaka, Arrowtown, Avon Loop Christchurch and Launch Bay Hobsonville Point.