The latest stats on National Disability Insurance Scheme (NDIS) property investments provide some great insights into the current state of the market and its potential. These stats were compiled at the end of 2021 and they show that NDIS property (called specialist disability accommodation or SDA) has great long-term investment potential.
Read on to find out all the important stats you need to know if you’re an SDA property investor (or you’re looking to become one).
The current undersupply of SDA
SDA is available to approximately 6% of NDIS participants who have the highest care needs. The latest figures show that by the end of December 2021, there were over 500,000 people enrolled in the NDIS, making more than 30,000 participants eligible for SDA.
However, just under 17,000 NDIS participants had SDA funding in their plans at the end of 2021, a shortfall of just over 13,000. In addition, there were only 13,538 approved SDA dwellings at the end 2021. Both of these factors indicate a significant and current undersupply of SDA.
You can view the latest SDA demand data across Australia here. As with any type of property, the demand in some areas is higher than others.
Medium and long-term SDA market growth forecast
You can see from the current figures that SDA demand in the short term will be strong. It is also likely to remain strong over the medium and long term as well, as the table below demonstrates.
|Year||Forecast NDIS Total Participants||Forecast Eligible SDA participants|
As you can see, the forecast number of eligible participants is predicted to grow by:
- more than 10,000 over current numbers by 2025 (an increase of 33%).
- more than 20,000 over current numbers by 2025 (an increase of 71%).
The forecast’s strong short, medium and long-term demand isn’t the only reason SDA is attracting property investors. It also provides above-average, government guaranteed rental returns once you have secured SDA tenants.
The federal government supports and funds the NDIS. This support is bipartisan, so no matter which party is in power at the federal level in Australia, it is likely that the NDIS and SDA will continue to be supported. This may indicate that SDA has both strong income-earning and capital potential.
How can you invest in SDA?
If you’d like to invest in SDA, it’s important that you go with a provider who specialises in this type of accommodation, like our team at Apollo Investment. We can provide you with an end-to-end service that includes:
- The design, building and approval of SDA in an area where there is high current demand. All SDA must be designed and built to strict design standards. They must also then be formally approved before tenants can legally be sourced.
- The sourcing of eligible SDA tenants (and their accompanying government guaranteed, above-average rental income).
If you’re considering NDIS property, speak to us at Apollo Investment! We help private investors navigate accessing an SDA investment property with income backed by the Federal Government.
Contact our team to discuss how we can help you.