Exploring the challenges in the development of retirement village homes through public-private partnerships

The trend in population ageing has promoted a rapid growth in retirement village industry. However, a significant capital investment is required for developing retirement villages. Applying the concept of public private partnership (PPP) in retirement village can satisfy the increased market demand and provide affordable living options. This paper investigates the challenges associated with the development of retirement village projects through PPP. A questionnaire survey was conducted with experienced practitioners across the globe. Results show that three out of the seventeen challenges emerged as the most significant challenges in the development of PPP retirement villages. These are: ‘limited understanding of developers on older people’s requirements’, ‘complex revenue and payment model’, and ‘misallocation and incomplete transfer of risks’. Furthermore, the seven teen challenges are regrouped into five major categories: ‘complicated contractual process and arrangement’, ‘poor land acquisition mechanism for projects’, ‘ineffective risk management’, ‘inadequate demand for aged care services’, and ‘lack of experience and knowledge in delivering retirement village PPPs’. The outputs of this study inform both government authorities and retirement village developers of the key hindrances to the successful growth of the global PPP retirement village industry.