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By SDA ADVISORY SERVICES
October 29th 2024
SDA Info
Making informed decisions in Specialist Disability Accommodation (SDA) investment requires close attention to demand data.
Tracking supply and demand helps investors avoid oversaturated areas and target regions where new housing is needed most. By using up-to-date SDA demand data, investors reduce the risk of vacancies and ensure their developments provide suitable homes for NDIS participants.
SDA demand data is vital for understanding where to invest. For instance, projections for New South Wales show a shortage of 4,000 SDA places by 2027, particularly in Sydney and surrounding areas where high construction costs and limited land availability have slowed development. This shortage provides a clear opportunity for developers to meet the rising demand in underserved areas.
Conversely, some regions, like Queensland's Logan and Ipswich, are facing an oversupply of SDA housing. Many newly constructed properties remain vacant, posing a risk for investors who may struggle to find tenants.
Oversaturation in these areas highlights the importance of data-driven investment strategies to avoid financial losses.
SDA refers to purpose-built housing designed for individuals with significant functional impairments or high support needs. These homes promote independence, safety, and dignity for those with disabilities.
As the number of participants in the National Disability Insurance Scheme (NDIS) grows, so does the demand for specialised accommodation. Unfortunately, existing SDA housing supply often falls short, making targeted development crucial.
Investors and developers rely on SDA demand data to identify regions with unmet housing needs. This data enables them to make smart investments, aligning their projects with areas where demand is most pressing and avoiding regions where the supply is already sufficient.
Demand mapping is an effective way to visualise areas with supply shortages or surpluses. For example, in Victoria’s inner suburbs, demand for SDA properties remains high, making it a prime area for future development. In contrast, regions like Logan in Queensland show an oversupply, making new developments there riskier.
By analysing
SDA demand maps, developers can better understand which areas offer the most significant opportunities for growth. Focusing on regions with under-supply—such as Melbourne’s urban centres or parts of South Australia—helps ensure that investments align with real housing needs.
Investors who effectively use SDA demand data can maximise returns by targeting areas where new housing is most needed. For example, focusing on high-demand housing categories, such as homes designed for individuals with high physical support needs, ensures that developments address specific participant requirements.
It's equally important to consider future supply pipelines when planning SDA projects. In areas like Queensland, where oversupply is already an issue, ongoing development could further saturate the market, leading to high vacancy rates.
On the other hand, New South Wales’ projected shortfall suggests that even with planned developments, supply will continue to lag behind demand, creating continued investment opportunities.
Victoria’s inner suburbs and parts of South Australia are currently among the most promising regions for SDA investment. These areas show sustained demand for SDA housing, driven by growing populations of NDIS participants and limited existing supply. Investors who focus on these regions can better meet the needs of participants while achieving stronger financial outcomes.
Conversely, regions facing oversupply, such as Logan and Ipswich in Queensland, present a higher risk for new developments. Investors should carefully assess SDA demand data and future supply projections to avoid committing resources to areas where vacancy rates may rise.
Smart SDA investment starts with data. By carefully analysing demand data and supply projections, investors can identify areas where new housing is most needed and avoid oversaturated markets. Regions like Melbourne’s inner suburbs and parts of South Australia offer strong opportunities for growth, while areas with existing oversupply should be approached with caution.
For developers and investors, leveraging SDA demand data ensures that projects are aligned with long-term market trends, delivering both financial and social benefits.
Contact SDA Advisory for further consultation.
Disclaimer: NDIS PROPERTY AUSTRALIA PTY LTD T/A SDA ADVISORY SERVICES has prepared information on this website that is general in nature. We believe this information to be reliable and accurate, based on currently available data. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. SDA ADVISORY SERVICES and its consultants are not licensed financial advisors and are not liable to any person or entity for any damage or loss that has occurred, or may occur, in relation to that person or entity taking or not taking action in respect of any representation, statement, opinion or advice referred to herein. You should seek independent professional legal, taxation and finance advice.
Acknowledgement: SDA ADVISORY SERVICES acknowledges Traditional Owners of Australia. We pay our respects to Aboriginal and Torres Strait Islander Elders past, present, and future.
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