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sda market findings

The Current State of the SDA Market and the Implications for Investors

The National Disability Insurance Agency (NDIA) recently released its quarterly SDA report that outlines the state of the market as at 30 June this year. 

Below is a summary of the report’s key findings in relation to the National Disability Insurance Scheme (NDIS) Specialist Disability Accommodation (SDA), along with the implications for investors in these types of dwellings.

Key finding 1: Further investment in SDA housing is necessary

Although the stock of enrolled SDA dwellings has increased by 58% over the past few years, the NDIA expects demand for certain types of SDA accommodation to increase. 

The number of people requiring supported independent living (SIL) is expected to increase by 9,000 over the next four years, though not all will require SDA. Data on the extent of supported independent living needs is currently being compiled.

The implications for investors: 

Investors should monitor the SIL data being compiled by the NDIA to inform their SDA investment decision-making. It’s crucial to choose the type of SDA you invest in wisely, as key finding 2 below illustrates. 

Key finding 2: Demand for single-resident apartments is not strong

This is potentially due to the fact that there has been an 85% increase in the supply of single-resident dwellings over the past two years. This supply level exceeds current demand levels, especially in the High Physical Support category, where many of these single-resident apartments have been built.  

The implications for investors: 

It’s crucial to build properties that are in high demand to avoid your SDA being vacant for extended periods. It will be easier for you to attract tenants and generate more income if  you build SDA in higher demand categories. 

SDA providers will soon be able to access the NDIA’s SDA Finder Tool to research the supply and demand of different types of SDA dwellings in different locations. This tool should be used to guide SDA investment decision-making.

Key finding 3: The top 3 SDA recipient profiles

There are currently more than 16,000 SDA recipients across Australia. Almost half have an intellectual disability as their major disability.  The next most common disabilities are cerebral palsy (12%) and autism (11%). 

The implications for investors: 

Investors should consider the SDA accommodation needs of high demand groups in choosing their SDA design category.

Key finding 4: The number of SDA dwellings in the ACT and Western Australia has risen strongly

There are currently more than 6,200 SDA dwellings across Australia. The table below shows the total number of dwellings in each State and Territory.

State/TerritoryNumber of SDA dwellings
New South Wales2,285
Victoria1,693
Queensland840
Western Australia65
South Australia1,126
Tasmania43
Australian Capital Territory143
Northern Territory29

The implications for investors: 

Some States and Territories have far more dwellings than others. These discrepancies don’t mirror the current distribution of SDA recipients in each location that’s shown in the table below. For example, Western Australia only has about 1% of Australia’s current SDA dwellings, but just over 7% of SDA recipients. 

State/TerritoryNumber of SDA participants
New South Wales5,572
Victoria5,295
Queensland1,650
Western Australia1,149
South Australia1,675
Tasmania396
Australian Capital Territory170
Northern Territory126

Once again, you should use the NDIA’s Finder Tool when it becomes available to determine SDA supply and demand in different locations. Areas where demand is the strongest and the supply is weakest should guide your SDA investment decision-making.

If you have any questions about investing in SDA, as NDIS Loan Experts, we’re more than happy to help. Don’t hesitate to contact us to learn more.

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