Strong wealth and a growing proportion of Australians approaching retirement age will see the delivery of more luxury residential aged care offerings in the next five years.
While a $550,000 cap exists on the amount residential care providers can charge for a refundable accommodation deposit (RAD), the number of applications made to price above this threshold increased by 74.7% across Australia in the year to June 2017.
Since the implementation of price restrictions on RADs, Western Australia has had the third highest number of rooms approved to charge above the cap of any state at 1,365. The only states with more approvals – by a large margin – were NSW (10,835 rooms) and Victoria (5,743 rooms) with both states experiencing substantial house price growth in recent years.
Compared to Queensland, Western Australia has half the amount of people under the age of 70, yet close to twice as many rooms priced above $550,000.