Hampshire's $24m Land Lease Deal Signals Era of Consolidation

Hampshire Property has nabbed an 8.25ha land lease community at Nambucca Heads for $24.5 million in a move that signposts an era of consolidation for the booming asset class. 

The deal brokered by HTL Property, reflects a 5.04 per cent passing yield for the fully occupied 189-lot Faringdon Village community at the coastal town, on the NSW Mid North Coast. 

HTL national director Andrew Jackson said the site’s strategic location and high-quality infrastructure underpinned its long-term appeal.

Jackson said the property had strong fundamentals with consistent income stream from site fees and high resident turnover, which presented ongoing opportunities for rental reversion. 

The quick sales velocity of homes within the community also pointed to the strong demand for the premier location Jackson said. 

The property received strong interest from both institutional and private investors with more than 60 enquiries and multiple competitive bids.

“The sale of Faringdon Village underscores the continued strength of the residential land lease sector, particularly for assets offering scale, stability, and strategic coastal positioning,” Jackson said.

“The community offers a compelling blend of affordability and lifestyle for residents, and investment-grade performance.”

The land lease sector is growing in both investment and scale. 

It’s now worth more than $5 billion in Australia, but only accounts for 1.34 per cent of homes for over-55s, according to Colliers data. 

Yield compression over the past decade reflects heightened competition for assets, with established communities in core coastal and metro areas averaging yields of about 5.25 per cent. 

The sector’s resilience during economic volatility and its alignment with government incentives for affordable housing reinforce its position as a defensive, long-term investment class.

Market penetration is also offering plenty of growth opportunities, and it’s a market that GemLife Group chief executive Adrian Puljich is capitalising on. 

▲ GemLife Beachmere is the group's fourth land lease community in Moreton Bay and chief executive Adrian Puljich says there is strong demand for housing.

GemLife recently won approval for its $295-million 355-home over-50s land lease community at Beachmere, 55km north of Brisbane’s CBD in the City of Moreton Bay. 

Construction is due to commence in mid-2026 on the 62.6ha site, which will include a 1.1ha artificial lake. 

It’s the developer’s fourth land lease community in the City of Moreton Bay, and Puljich said it was meeting the strong demand for homes in the region. 

“We see significant opportunity in Moreton Bay, with continued demand driven by the 210,000 additional residents anticipated to call this region home over the next two decades,” he said.

“It ticks all the boxes for over 50s, with its stunning natural beauty, access to established amenities, and proximity to Brisbane and the Sunshine Coast. Yet, many suburbs – like Beachmere – remain somewhat of a hidden gem, with a relaxed seaside lifestyle on offer.”

Land lease is expected to continue its growth trajectory in 2026, with more new communities in planning.