As at 30 June 2020, we managed 18,024 properties in all capital cities, major regional centres and remote locations of Australia where the ADF has a presence (refer to Figure 2.8).¹

The majority of properties are integrated throughout the community, close to ADF bases and establishments, and close to a range of amenities and services such as transport, shopping facilities and schools.

Refer to Regional report on operational performance for details on our housing portfolio by region.

Figure 2.8: National housing portfolio 30 June 2020²

Our Member with Dependants portfolio

Member with Dependants (MWD) service residences must comply with minimum Defence standards in terms of location and amenity. Depending on the Defence Housing Forecast (DHF) area, service residences are either classified by market rent (known as rent bands) or by property amenity. In general, service residences should not be more than the greater of 30 kilometres one way by road (or 150 minutes for a round trip using public transport) from the base or establishment where the ADF member works.

At a minimum, service residences generally comprise three to four bedrooms, separate lounge and dining areas, kitchen, laundry, bathroom, ensuite, single garage (or carport in the Northern Territory) and a 35 square metre backyard (or 25 square metre backyard in Sydney). Where newly constructed, service residences must achieve a minimum six star energy efficiency rating (EER).³

As indicated in Figures 2.9 to 2.11, the majority of our MWD portfolio features modern, free-standing houses that are up to 10 years old and have four bedrooms.

Choice housing

Our MWD portfolio also includes a portion of properties categorised as Rent Band Choice housing. These properties are generally inner city apartments and townhouses that do not meet Defence compliance standards. ADF members typically choose to live in Rent Band Choice housing because the location suits their lifestyle.

Figure 2.9: MWD portfolio by type 30 June 2020

Figure 2.10: MWD portfolio by age (years) 30 June 2020

Our Member Choice Accommodation portfolio

Our Member Choice Accommodation (MCA) properties offer Members without Dependants (MWOD) and Members with Dependants Unaccompanied (MWD(U)) an attractive alternative to renting privately, including a simple move in move out process with no bond or rent required in advance. Eligible ADF members may also share properties with other eligible ADF members.

There are no minimum standards in Defence policy for MCA properties. As indicated in Figures 2.12 to 2.14, the majority of our MCA properties are two bedroom apartments that are up to five years old.

Refer to Part 3 - Performance reporting for more information about our MWD and MCA portfolio provisioning performance in 2019–20.

Figure 2.12: MCA portfolio type 30 June 2020

Figure 2.13: MCA portfolio by age (years) 30 June 2020

FIgure 2.14: MCA portfolio by number of bedrooms 30 June 2020

Portfolio ownership type

Ownership of our portfolio can be segmented into four categories:

Leased

The majority of our MWD and MCA portfolio is owned by private landlords and leased to us.

DHA owned

We retain a portion of our portfolio for strategic reasons. This includes well located properties that would be difficult to replace if sold, properties to hold for future redevelopment and properties that we choose to hold for financial reasons.

Defence owned

A portion of our MWD portfolio is owned by Defence. These properties are generally located on or near to ADF bases or establishments.

Annuity

A portion of our portfolio is classified as annuity properties. These are properties that we construct on base or acquire and/or construct off base in selected locations as directed by Defence. We pass the economic risk of holding capital in these markets onto Defence.

Figures 2.15 and 2.16 provides a breakdown of our MWD and MCA portfolios by ownership type.

Figure 2.15: MWD portfolio by ownership type 30 June 2020