The future of Australia’s aged care landscape includes high-rolling, premium aged care accommodation, obviously with a hefty price tag.
Entering the new aged care market in the next 10 to 20 years will be Australia’s baby boomers, who own around 55% of the nation’s wealth. This generation has the capacity to pay for luxury offerings, being the largest holders of household wealth of any generation.
The shift towards aged care offerings targeting the privileged is already underway; Perth currently has seven aged care facilities charging more than $800,000 for a Refundable Accommodation Deposit (RAD). Demand is high, with majority of these accommodation placements having extensive waiting lists, suggesting that we are only going to see more luxury high priced accommodation in the future.
Innovative and high value offerings are also emerging in dementia accommodation. Glenview Community Services, with backing from industry super fund HESTA, is set to build Australia’s first dementia village in Tasmania based on the world renowned Hogewey model in the Netherlands.
Growth in the aged care market will not simply be driven by changes in Australia’s population, but also by greater value offerings as the sector moves towards deregulation.
So how did we get here?