UDIA Victoria Land Lease Communities Position Paper
Land Lease Communities:
A Scalable Housing Solution for an Ageing Victoria
UDIA Victoria
Peak industry body representing developers, planners, engineers, architects, builders, consultants, lawyers, economists, councils and utilities across Victoria's urban development sector
The Challenge
By 2041, Victorians aged 50-84 will increase by 40%, adding pressure to our already strained housing system
The Solution
Land lease communities (LLC) offer affordable and secure housing that enables ageing in place while staying connected to family, community and services
LLCs are a well-established but under-utilised housing option that offer affordability, security and independence, particularly for older Victorians. They provide a pathway to rightsized housing that allows people to remain independent, age in place, and stay connected to family, services and community.
Despite their proven benefits, policy, planning and regulatory settings in Victoria have not kept pace with the growth and potential of this model.
Targeted reform can unlock more LLCs, delivering well located housing faster and broadening
Snapshot of LLCs
More affordable
Typical home purchase price in an LLC is significantly below median house prices in the areas they are located.
Commonwealth Rent Assistance eligible
Share of LLC residents eligible for Commonwealth Rent Assistance, which supports affordability without state level subsidy.
$17M
Annual avoided healthcare costs
Annual avoided healthcare costs through improved mental health and physical activity of LLC residents. Many LLCs include onsite medical services.
12 - 18 Months typical permit timeframe
Typical permit timeframe for LLCs under current discretionary planning pathways
75% 88% are retired 38% live alone 50% are downsizers wanting a more manageable property of LLC residents are aged over 65
Economic Contribution To Victoria
$544M
Contribution to Victoria's GSP in 2021–22 3,132
Gross State Product
Jobs Jobs supported across the sector
The sector supports a diverse network of Victorian businesses, from builders, surveyors and modular home manufacturers to electricians, plumbers, grounds maintenance contractors and allied health providers. Many of these suppliers are regionally based and benefit from the consistent demand generated by LLC projects and ongoing operations. Because LLCs are actively managed, they also provide stable, long-term employment for site managers, caretakers and customer service staff. In regional cities and peri-urban towns, this ongoing economic activity supports local economies year-round, independent of tourism cycles.
Low Infrastructure Burden
Private gated communities with self-managed services Compact Urban Footprint
Predominantly, LLCs are on 8-15 hectare parcels in peri-urban locations
Social Value and Wellbeing Outcomes
Land lease communities deliver demonstrable benefits to the health, safety and wellbeing of older Victorians, generating significant social value that reduces pressure on the state's health and social systems.
Personal Wellbeing Index
Average score among LLC residents, significantly exceeding the Australian population average of 70.4 These outstanding outcomes are strongly linked to the community environment, enhanced affordability and dramatically reduced housing stress experienced by residents.
Resident Experience Improvements
$3.4 million in avoided physical inactivity-related health costs through enhanced community activity and engagement
$13.7 million in avoided costs through improved mental health outcomes and reduced social isolation
"Land lease communities offer one of the few housing models where social value, economic contribution and affordability are delivered simultaneously.“
– Linda Allison, UDIA Victoria Chief Executive
LLCs role in the seniors living sector
LLCs represent a distinct housing model with a unique regulatory structure and demographic profile.
Land lease communities
Age Cohort
Resident Profile
Key Decision Factor
Ownership Model
Funding Model
Pre- to early retirement
independent
Lifestyle, affordability, sense of community, downsizing, security
Own home, lease land
Gov Subsidies
Market Size
Location Profile
Market Maturity
Emerging: Low awareness, growth potential
Retirement Villages Traditional Homeownership
Mid- to late retirement
Independent to low care needs Frailty
Security, amenities, social connection, downsizing, maintenance burden
Lease/licence to occupy
High care / complex needs
Health decline, safety concerns, acute incident or hospital discharge
No ownership; Accommodation + care agreement
Rent Assistance Accommodation Supplement; Care Subsidies
Victoria's housing affordability challenge is deepening. Even downsizing to an apartment is becoming unattainable for many residents. LLCs offer a transformative solution.
Cost
Reduction
LLCs reduce entry costs by 30-50% compared to traditional ownership by eliminating land purchase requirements
Equity Preservation
A downsizing homeowner can live on the equity they save by selling their home and downsizing to an LLC dwelling
Community Living
Access to thriving communities with shared amenities and social connections
"For someone selling a median suburban family home, the price of an LLC dwelling allows them to unlock capital, reduce their living costs and live in a thriving community."
- James Westh, UDIA Victoria Member, General Manager of Stockland's Victorian Residential LLC division
Who Benefits from LLCs
Single Retirees
Particularly popular among single older women seeking community connection and avoiding social isolation in purposebuilt environments
Low-Maintenance Seekers
Retirees wanting hassle-free housing close to family and essential services with professional grounds maintenance
Asset-Rich Downsizers
Homeowners with substantial equity but constrained income who want better lifestyle without sacrificing living quality
Independent Over-50s
Those preferring to age in place outside traditional retirement or aged care models while maintaining autonomy
Current Barriers for LLCs
Despite strong alignment with state policy objectives, LLCs face barriers that constrain supply, deter investment, and create uncertainty. Addressing these challenges will unlock the full potential of LLCs as an affordable housing solution.
Alignment with Victorian Government policy objectives
Plan Victoria 2024-2050
Encourages diverse and affordable housing options across Victoria.
Victorian Ageing Well Action Plan 2022-2025
Prioritises ageing in place, affordable housing and community connection for older Victorians.
Housing Statement 2023: The Decade Ahead
Commits to streamlining planning and enabling new and emerging housing types in both growth and established areas.
Regional Housing Plans and Growth Area Frameworks
Provide strategic direction for timely delivery of housing and infrastructure in regional cities and peri-urban growth corridors.
“LLCs directly support the goals of key Victorian Governments and initiatives across multiple policy domains”
James Westh, Stockland, Chair of UDIA LLC Committee
Proposed Reforms
Clear Planning Pathway
Establish consistent, streamline planning process specifically designed for LLC development across all Victorian councils
Innovative Design Standards
Support cutting-edge sustainable precinct design that meets contemporary environmental and community needs
Legal Framework Modernisation
Update legislation to create market confidence and attract sustainable investment in housing
Fast-Track Delivery
Enable rapid project approval with certainty, reducing development timeframes and associated costs
Affordability Protection
Safeguard housing affordability and accessibility specifically for Victoria’s ageing population through targeted policy measures 6. Implementation Strategy
Deploy practical, achievable reforms within existing government frameworks, aligned with broader housing and ageing policies.
Building strong, inclusive communities for our ageing population
