Summerset Group opened the week strongly after the operators and developers of retirement villages reported a record Q2 result for sales and the best half-year result in the company’s history.
The New Zealand based operator delivered the record across both new sales and resales, reporting a total of 270 sales for the quarter ending 30 June, comprising 154 new sales and 116 resales, taking the total for the half to 545 sales in the six months to 30 June. The result was nearly 50% higher than the group’s best pre-COVID total sales result and also 5% higher than it achieved in the second half of last year.
The company said that demand continues to be strong for both new sales and resales, and they have seen good diversification of sales across the country with 70% of new sales coming from four villages: Casebrook (Christchurch), Ellerslie (Auckland), Rototuna (Hamilton) and Te Awa (Napier). Since Q1, Summerset’s waitlist for people looking to enter a Summerset village increased by a further 8%.
The group had also pre-sold all independent living units being delivered in Q3 at the Bell Block (New Plymouth), Hobsonville (Auckland) and Te Awa villages, as well as 80% of those available at its Rototuna location.
More than half the new units delivered in the second half would be serviced apartments, memory care apartments and care beds and suites. These typically take longer to sell than villas and independent living apartments as they are needs-based, and it was therefore expected sales in the second half of the year would be marginally lower than the first half.
The biggest delivery in Q3 would be a $54 million, 10,500m2 main building at Avonhead (Christchurch), home to serviced apartments, a care centre and a state-of-the-art memory care centre, as well as resident amenities such as a swimming pool, gym and café.
Summerset CEO Scott Scoullar commented, “These main buildings are an integral part of all new Summerset villages and this will be the second we have delivered this year. They’re a key part of our continuum of care model, which is all part of bringing the best of life for our residents.”