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Previewing the SDA Pipeline

Brent explores new SDA data from The Summer Foundation including a look at what's in the SDA pipeline.

By Brent Woolgar

Updated 15 Apr 202427 Mar 2021

Access to accurate and useful data can make or break any Specialist Disability Accommodation (SDA) project, which is why we like to keep you up to date when new information is released. And this month, it is the Summer Foundation delivering the goods. The foundation has released the latest update of the SDA Supply in Australia report, and it is definitely worth checking out.


Supply report respondents

The report relies on feedback from SDA developers, investors and providers about their development plans for SDA dwellings. The foundation collected feedback from 57 separate entities, which represents about 21% of active SDA providers. The full list of respondents can be found in Appendix B of the report.


SDA Pipeline

One of the most important pieces of data included in the report is information on the SDA pipeline. According to the Summer Foundation data, as of 10 November 2020, there were 1,817 new SDA places in the construction pipeline across Australia. These places combined with the total registered properties reported in the last quarterly report (11,500) means there are now a total of 13,300 new SDA places in operation or under construction. This is an increase of nearly 2,000 places compared to the same period in 2019. 

The breakdown of the SDA pipeline across Australia is provided below:


Strategies for sourcing tenants

The report also contains highly enlightening data on strategies providers use to attract tenants. The data align very strongly with DSC’s opinion that there is no one strategy for linking with potential tenants. Providers utilise a fairly even mix of strategies, including online platforms, their own websites and marketing, and engagement with Support Coordinators and SIL providers.


Types of SDA being built

Unsurprisingly, High Physical Support is the dominant design category for properties in the SDA pipeline. About 66.5% of new supply falls into this category. Unfortunately, it is unlikely that the same percentage of participants will receive High Physical Support funding for their plan. Of equal concern is that there is little movement in the supply of Robust dwellings, with only 6.6% of properties in the pipeline in this category.

Apartments are the dominant style of new SDA, representing 54.3% of pipeline supply. Furthermore, 77.6% of SDA dwellings in the supply pipeline are one-resident settings, suggesting there will be a welcomed decrease in the supply of group homes.


SDA Explainer for Investors

 The Summer Foundation, in conjunction with JBWere, also released an SDA Explainer for Investors. This document offers timely insights to those considering investing in the growing SDA market. In particular, it deep dives into the many risks associated with SDA investment and possible strategies to mitigate these risks.


Useful information but always be aware of the source

The Summer Foundation resources are packed full of useful information and are definitely worth reading. However, as DSC has cautioned in the past, when making investment decisions, always be aware of the limitations of any single source of data. We encourage you to do your research thoroughly before embarking on a new project.


Brent Woolgar

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