Village resale pricing – are you dynamic?

In two conversations this week, we heard of the significant price escalation some operators are achieving in this high demand market.

In Melbourne, one operator had a village unit that was about to be priced at $900K when their sales executive said they thought they could get $1.1M if they worked with keen buyers. It sold for $1.4M.

In another conversation, we heard where every new resale unit required a five-page analysis on its merits – e.g. does it face north, is it close to the community centre, what is the sales funnel like – to arrive at a sale price.

The increased revenue is extraordinary and the positive impact on residents is also very strong, especially if they are sharing in the capital gains. As one operator told us, the discussion on the cost of refurbishment has evaporated.

This goes to the discussion on the value of a lead: the quality is graded by how much you know about the person. A Facebook lead is of low value compared to a lead where you know who they are and that they are actually in the market for a retirement village home – especially if it means that you can price dynamically and add another $50-100K to the entry price.

Over to you.