The New South Wales Government has released its proposed Housing State Environmental Planning Policy (SEPP) for public comment, and reveals a number of significant positive changes for the seniors housing and care sectors.
While on the surface it does not appear to favour independent living, it does establish a framework for larger independent living villages, residential aged care developments and co-located independent living and care.
Check out the proposal above, which allows an additional 25% of the maximum permissible floor space ratio. This is significant.
Equally significant is the opportunity being given to larger co-located developments - see below.
If the residential aged care comprises of at least 60% of the value of the development and the project costs $20M+ in regional or $30M+ in greater Sydney, it will be rated as a State Significant Development and can bypass onerous local council conditions.
Both of these changes point to the potential opening up of larger continuum of care developments, which will directly benefit the business case for residential aged care operators – a separate and attractive additional income and marketing proposition.
Simon Militano, founder of business and property advisory group SALA Solutions, also pointed out to us the fact that the Government for the first time gave details of which Zones seniors housing developments will apply, which provides much-needed certainty to developers.
Also interesting, as a side note, the Government is moving the age for Seniors living up from 55 to 60.
Consultation on the draft proposal closes later this month, 29 August.
Once finalised, the NSW SEPP provides the opportunity to open discussion with other state Governments.
