Sunny Sand Residential Village, a coastal manufactured housing estate (MHE), has set a new pricing benchmark for the rapidly expanding Australian Social Infrastructure sector.
The final sale price for the residential village reflected a net yield of circa 5.6% (excluding a manager’s wage), which is a substantial record in today’s market with the previous pricing best set at a return of 6.22% in Queensland in 2019.
While yields within the competitive social infrastructure space have sharpened significantly since 2017, the going market yield or return for an established park hovers between the ranges 6.75-8.5%.
Mr Twelftree said; “The volume of response the team received over the course of the campaign was unsurprisingly significant. There is limited quality grade investment stock on the Australian market at present – however, significant levels of capital remain.”
“Stage one of the residential village was constructed in 2005 and all community amenity and homes have been meticulously maintained – it really is one of the most impressive parks on the market, given it’s age,” Mr Twelftree added.
Marcello Caspani-Muto added; “The MHE sector continues to grow in popularity, so much so that today it is clearly the fastest growing segment within the country’s senior living and retirement spectrum – even with this growth in most parts of the country there remains a shortage of supply for affordable seniors’ accommodation, which is particularly an issue within Victoria.”
“Almost all operators within the space remain active for quality opportunities, reflected in an uptick in enquiry for existing communities – the current enquiry that the team is fielding for these assets is quite extraordinary.”
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