New retirement village will have a huge impact on housing market

Ryman Healthcare’s new retirement village will have a huge impact on the local housing market. Not only will the $60m project inject welcome cash into the local economy, but it will also create a flow on effect in the housing sector as many folk move houses.

Unlike a new factory or processing plant, Ryman’s end product creates new housing opportunities which means all those people who will buy a retirement villa at Ryman’s centre will end up selling their existing homes and so a chain reaction begins.

This will have an impact on future market  prices. Gisborne’s population is static and has been so for many years. So if there is not an influx of new people coming to Gisborne, there will be a strong supply of houses for sale in Gisborne but not an increase in demand. The law of economics of how market prices are driven in part by the supply and demand, will come into play and we may see a further easing of prices. But if on the other hand the projected population growth for the region kicks in, then Ryman’s new centre may be the answer for a projected shortfall in housing stock. It will be interesting to see it all unfolds.

Either way Ryman’s new retirement village is a welcome project for the region.

The following is from Marianne Gillingham, Gisborne Herald

Ryman expects to start recruiting people here within the next eight weeks to work on its new $60 million development at Lytton West.

The new village was yesterday named after legendary Gisborne soprano Dame Kiri Te Kanawa.

Mayor Foon welcomed the development.

“I congratulate Ryman on their commitment to this region. The $60m development will provide significant economic benefits, new employment opportunities and provide wonderful retirement living and aged-care options for our elderly.”

Mr Challies said Ryman was looking forward to working with the community to provide the people of Gisborne a first-class retirement and rest home option.

“We’ve been thrilled by the reception we have already received from the community,” he said.

“The Gisborne District Council has been very supportive and we look forward to working with the District Health Board and community groups to support the elderly people of Gisborne.”

The village will include a secure community of villas and serviced apartments as well as a rest home and hospital.

It will have a staff of over 120 and over 150 people are expected to work on the site when construction is at its peak.

The company’s contracting manager, Tom Brownrigg, expected to start advertising for subbies, suppliers and labourers as soon as consent work was complete.

Preference would be given to local people.

“We want to open the village within 12 months,” said Mr Challies.

The first stage would be the village centre, townhouses and serviced apartments, with the 99-bed rest home and hospital to follow.

He expected the entire project would take three to four years.

The Kiri Te Kanawa Retirement Village will be Ryman’s 22nd village, and will join the group which is well-known for its Edmund Hillary Retirement Village in Auckland, Princess Alexandra Retirement Village in Napier and Malvina Major Retirement Village in Wellington.