For decades, land lease communities have provided an affordable, community-oriented lifestyle for retirees, evolving from simple cabins in caravan parks to luxurious resort-style living. Traditionally, these communities have been built on large plots of land on the urban fringe or in regional areas. But now, a groundbreaking project on the Gold Coast is set to change the game — the first vertical land lease community has been approved, paving the way for city-based land lease living.
What is a land lease community?
Land lease communities operate on a unique financial model where residents purchase their home while leasing the land beneath it. This structure often allows retirees to access Commonwealth rent assistance — currently up to $211 per fortnight — while their home remains an exempt asset for pension purposes. Many communities feature premium amenities, such as clubhouses, pools, bowling greens, and cinemas, fostering a socially vibrant lifestyle.
However, until now, the land-intensive nature of these communities has meant they were typically located in outer suburbs or rural areas. With the introduction of vertical land lease communities, retirees could soon have the opportunity to enjoy this lifestyle much closer to city centres.
How do vertical land lease communities work?
While they may look like traditional apartment buildings, vertical land lease communities must adhere to the same legislative requirements as their single-level counterparts. This means the homes — whether apartments or villas — must be demountable. While this feature aligns with the existing model, relocating these homes remains a complex and costly process, often requiring significant dismantling and reassembly.
One of the key financial advantages of land lease living is that there is no stamp duty when purchasing the home, and many models do not impose exit fees upon departure. However, residents are responsible for site fees, even after moving out, until the home is sold. In Queensland, residents can apply for a 25% rent reduction after six months and may be eligible for a buyback after 12 months if their home remains unsold.
A closer look at the Gold Coast’s first vertical land lease community
The first approved vertical land lease community will consist of six three-storey buildings and one four-storey building, housing a total of 205 three-bedroom homes.
Despite the multi-level design, the development will maintain an expansive, green feel — 70% of the 14-hectare site will be dedicated to green space, featuring more than 100,000 new plants, public and private gardens, and wildlife corridors.
Residents will also have access to a three-level country club boasting an impressive array of amenities, including:
- A 55-seat cinema
- Two bowling alleys
- A 25-metre indoor pool and spa
- Three lawn bowls rinks
- A pickleball court
- A gym, hair salon, and wine room
- A workshop and consulting room
While pricing details for this particular development are yet to be released, similar communities have homes starting at $1.2 million, with weekly site fees beginning at $259.
What does this mean for downsizers?
For retirees considering a move into a land lease community, the emergence of vertical options means greater choice — especially for those who want to stay closer to urban centres without sacrificing lifestyle and amenities. However, as with any major financial decision, it’s essential to fully understand the rights, responsibilities, and costs associated with your new home — both while you live there and after you leave.
As the land lease sector continues to evolve, this new approach could redefine retirement living, making city-based communities a viable and attractive option for downsizers across Australia.
