South Africa, like Australia, has a breadth of seniors accommodation around the retirement village model, operated by private and not for profit developers.
There are no reliable statistics on how many villages there are in South Africa and there is no peak association. Villages fall under the Housing Act but village legislation and regulations are not advanced.
The NFPs use villages to make surplus income to subsidies their loss making care operations.
Private developers we are told struggle with offering co-located care and fall back to “lifestyle” village offerings.
The contract is similar to Australia’s loan/licence or lease/licence but is called a “Life Right”.
Typical entry to a village is a 2 bedroom plus study villa priced at $90,000 with a 20% DMF. The top price bracket is around $110,000.
The average family home in a metropolitan setting being $70-80,000 and the income required to have a “comfortable” life is $2,000 per month.
The NFPs offer a range of lower price entry points with no capital gain and higher monthly fees, which are not regulated.
The same drivers are present in South Africa to Australian villages – the need to solve a physical, emotional or financial problem.
