Are Retirement Villages Affordable in Australia 2026

Retirement Village Pricing in Australia 2026

Retirement village pricing across Australia remains closely linked to local housing markets and the type of accommodation provided. Independent Living Units (ILUs) typically have entry costs significantly lower than traditional residential properties in the same areas, reflecting their unique service and living arrangements.

According to recent data, ILUs average around 59% of the median house prices in surrounding communities nationally, though regional variations apply. Metropolitan areas generally feature higher entry fees compared to regional locations, influenced by demand, location desirability, and available amenities.

Entry fees can range widely, from approximately AUD 100,000 for basic units in some regional villages to amounts exceeding AUD 1 million in premium metropolitan retirement communities. This variation reflects differences in unit size, design, village facilities, and included services.

Understanding Retirement Village Fee Structures

When considering retirement villages, it is important to understand the three primary fee categories:

Entry Fees

Entry fees are upfront, non-refundable payments made to secure a unit within a village. They often represent the largest initial cost and may be structured as a loan or part payment toward future buyback arrangements.

Ongoing Fees

Residents pay ongoing fees, typically weekly, to cover management, maintenance, and village services. These fees vary depending on the village and included services, commonly ranging from around AUD 100 to AUD 500 per week nationwide.

Exit Fees (Deferred Management Fees)

Exit fees, or Deferred Management Fees (DMFs), are charges deducted from the repayment to residents when they leave the village or sell their unit. These fees usually apply as a percentage of the entry fee over the length of occupancy, often capped and regulated depending on the state or territory.

Additional Cost Considerations

Additional expenses residents may face include:

• Costs for unit repairs or refurbishment prior to resale
• Charges for optional or additional services (healthcare, meal plans, transport)
• Homeowners’ insurance or contents insurance
• Council rates, utilities, and other property-related expenses unless included in ongoing fees

Understanding these additional costs is crucial for accurately assessing overall affordability.

Geographic Variations in Costs and Regulations

Retirement villages in Australia are governed under state and territory legislation, which influences fee structures and resident protections.

• Victoria: The Retirement Villages Act 1986 regulates contract terms, fees, and disputes. Typical entry fees in suburbs such as Frankston or Templestowe range from AUD 100,000 to AUD 1 million, with weekly fees generally between AUD 100 and AUD 500.
• New South Wales: Governed by the Retirement Villages Act 1999, allowing for similar fee arrangements but with different contractual details.
• Queensland: Regulates villages under the Retirement Village Act 1999, including specific provisions on DMFs and resident rights.

Each region’s regulatory differences can affect the financial and legal obligations of residents.

Alternative Tenure Models: Leasing and Rental Options

Some retirement villages offer alternative tenure models such as rental agreements or long-term leases to provide different access points than upfront entry fees. These options allow some residents to avoid large initial payments but typically involve ongoing rental or lease payments without property ownership.

These arrangements may suit individuals preferring lower upfront costs or those seeking more flexible living arrangements, though they bring different financial considerations.

Financial and Legal Considerations

Retirement village contracts are often complex, sometimes exceeding 100 pages and containing detailed descriptions of fees, services, and resident obligations. It is recommended that prospective residents seek independent legal and financial advice to understand contract terms, implications of exit fees, and potential impacts on government benefits such as the Age Pension.

Recent analyses highlight that some residents have experienced unexpected costs related to exit fee calculations or refurbishment requirements when leaving the village. Being informed about these potential expenses can aid in long-term financial planning.

Lifestyle and Services in Relation to Costs

While costs play a major role in retirement village decisions, the availability and quality of lifestyle options and services are also vital considerations. Facilities such as communal areas, health and wellness programs, transportation, and security may be included in ongoing fees or offered as optional extras.

Assessing how these service offerings align with individual needs and preferences is an important factor in evaluating overall affordability beyond just monetary costs.

Typical Costs in Australia (2026)

When considering retirement village living in Australia, typical price ranges include:

• Basic option: Around AUD 100,000 to 300,000 for entry fees in regional villages with minimal facilities and smaller unit sizes.
• Standard option: Approximately AUD 300,000 to 600,000, often in suburban locations with moderate amenities, average unit sizes, and some included services.
• Premium option: Typically AUD 600,000 to over 1 million, common in metropolitan areas offering larger units, extensive facilities, and additional services such as healthcare access or concierge.

Ongoing weekly fees range widely, commonly between AUD 100 and 500 depending on services and village location. Exit fees usually apply as a percentage of the entry price and are governed by state legislation.

This overview does not substitute for personalised advice tailored to individual circumstances but presents the key financial considerations relevant to retirement village affordability in Australia in 2026.