Discount rates are moving down from 13.5/14.5 per cent to 12.5/13.5 per cent, for individual properties and portfolios are tighter.

Six months ago, villages were marketed for sale at 15 per cent discount but today, one operator commented to us that they would be an enthusiastic buyer if they could find a village at 14 per cent discount.

Paul Moschione, National Director - Retirement and Healthcare Valuations at CBRE (pictured), pointed out to us the three factors which have supported the improved discount rates are: interest rates coming down; more buyers of villages in the market; and the improved risk profile of villages (given the strength of the residential housing market).

Indicating what this trend is delivering to operator balance sheets, Ingenia has just announced an increase in its portfolio valuation of $20.3 million after taking into account its aggressive acquisition costs which totalled $7.1 million over the last six months alone.

Ingenia has 60 properties across retirement villages, rental villages and manufactured home estates.