According to ABS numbers and Savills Research, the next 30 years will see a significant change in Australian demographics, with the number of over 65s growing from 3.6 million to 8.9 million, an increase from 15% of the population to 35%. This will have a flow-on effect in property, with consistent pressure to meet the demand for aged care living.
In Queensland earlier this year, Brisbane City Council’s Lord Mayor Graham Quirk announced a new incentive package and changes to infrastructure charges to encourage aged care. As part of these changes, there will be a reduction in development infrastructure charges by 33 percent over a three-year period.
These charges are similar to ones brought in by Brisbane City Council for student accommodation developments (for approvals between July 2014 – June 2017), which have already met with great success.
In addition to the reduction of infrastructure charges for aged care developments, the council is also allowing additional two-storey allowances in medium and high density locations, if best practice design requirements are met. The effect of this will be particularly prominent in middle ring suburbs such as Ashgrove, Wilston, Wooloowin, Coorparoo, Yeronga and Auchenflower.
Savills has already started seeing increased demand for retirement and aged care living in these suburbs. Just recently, we assisted a not for profit client in Ashgrove with the sale of an 8000sq m property. The property received 182 interested parties and 17 offers, eventually selling to TriCare for $5.4m with plans to develop a 150 bed retirement facility.
This is one of many recent transactions underlining the strength in demand for this sector; and the recent changes to infrastructure charges are only going to encourage more developments such as this in the middle ring suburbs.