Residential land lease communities like the under construction Lincoln Lifestyle Moama are being touted as a solution to Victoria’s shortfall of housing.
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Could a community in Moama provide a model to help Victoria hit its housing targets?
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The state’s peak caravan and residential parks advocacy body thinks so, but experts warn it’s not quite as simple as it may seem.
They’re called residential land lease communities, intentionally planned neighbourhoods where residents own a moveable or modular house they live in but lease the land through a long-term agreement.
Scott Parker, the chief executive of CRPVic, said the sector is growing rapidly, spurred on by cost of living pressure and the demand from older Australians to downsize their living arrangements.
“We know the demand for RLLCs is there, but currently, Victoria is falling behind other states” he said.
“That’s why CRPVic is calling on all parties to commit to define RLLCs in the Victorian planning provisions and establish a dedicated approval pathway.”
Currently, LGAs make their own rules on RLLCs in Victoria, with CRPVic claiming this can lead to the communities getting confused as aged care villages and being bogged down in the planning process.
Mr Parker said if the state adopts a definition and a dedicated pathway the sector can deliver Victoria around 183,500 homes by 2051at no cost to the government with the right conditions, nearly 8 per cent of the state’s housing target.
“Every person who downsizes into a RLLC frees up an already existing house,” he said.
“They’re especially appealing for those looking to downsize because you don’t have to pay stamp duty.
“If we can get things consistent and attract more national housing investors to Victoria, with the demand which exists, this can be a really effective solution.”
One of those investors is Lincoln Place, a developer which has built more than 25 land lease communities including one in Moama slated to welcome its first residents next year.
The company’s chief executive Paul Yeo said the project was met with high demand from both sides of the border.
Paul Yeo speaks at the launch of the Lincoln Lifestyle Moama.
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JORDAN TOWNROW
“Demand for well-priced downsizing options in the Moama-Echuca region is significantly outpacing supply,” Mr Yeo said.
“The first release of 24 homes at sold out within 10 days through our priority access program, weeks ahead of the public launch.
“More than half of these early buyers live within 25km of the community, while one in four come from the broader Murray River region.”
Dr Andrea Sharam, an associate professor at RMIT’s School of Property Construction and Project Management said this demand was a trend across the board.
“The (RLLC) industry is booming because you have people in, or close to, retirement moving to the coast or regional areas.
“They get cheaper housing and, in doing so, free up existing housing, but it comes with other considerations.”
Dr Sharam said there were a number of concerns surrounding RLLCs including sustainability, accessibility, and the potential impact to local services.
“These are predominantly in non-metro areas,” she said.
“So, with potentially thousands of older people moving to them, concerns exist about local services’ ability to cope with the influx of demand.
“There needs to be a significant amount of investment in these regional centres to support this particular kind of demographic.”
No parties have publicly confirmed they will commit to CRPVic’s election demands.
The Victorian election will be held on Saturday, November 28.
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