The company recently held a public information day for the village and told those attending that the first 31 homes were "spoken for" and that sales of the houses in the next stage of development were also strong.
The foundations for the first houses had been laid. They were expected to be completed by the end of the year.
"The company has been blown away by the demand for the village. We knew coming into Dunedin that demand for good-quality city retirement village living was here. What we didn't know was that the village would be as successful as it is proving to be."
It was probably the first time in Summerset's history that the first stage of houses would be fully sold before they were completed, Mrs Barlow said.
The company announced it would maintain a relationship between the neighbouring Balmacewen Intermediate school and had contributed to the school's rugby team participation in a tournament.
"It's important for us that we are a good neighbour. We're delighted to have Balmacewen Intermediate next door."
The success of the sales in Dunedin came on the back of a strong first-half sales result across the company's nationwide village portfolio.
Summerset recently delivered a positive trading update to the NZX, announcing an increase in sales for the first six months of 2012, well ahead of prospectus forecasts.
Craigs Investment Partner broker Chris Timms said Summerset offered an early-stage exposure to a proven business model in a highly attractive sector.
Like its more established competitor Ryman Healthcare, Summerset was able to recycle capital and fund future development from interest-free loans from existing residents, he said.
Ryman was the leader in the industry with a better track record but Summerset, while less proven, had made rapid progress since it emerged from AMP ownership in 2009.
Summerset traded at a substantial price/book discount to Ryman.
"Summerset can start to narrow the valuation gap by delivering on its strategy.
"Overall, we rate Summerset as higher risk but higher reward if its strategy is executed," Mr Timms said.
