Concern about new retirement units

2:34 pm on 12 August 2015

Summerset Group is increasing the rate of new construction despite an analyst's report indicating there could be an oversupply of retirement units in Auckland within a few years.

The retirement village operator's profit more than doubled to $35.7 million in the six months to June, due to record sales and valuation gains.

Broking house Forsyth Barr said the demand for aged-care beds was expected to outstrip supply for the next 10 years, but a 50 percent increase in the number of units in Auckland points to a potential glut in the short to medium term.

However, Summerset chief executive Julian Cook remains undeterred.

He said the strong result had prompted the company to increase its annual build rate by one third to 400 units, starting next year.