The healthcare property market in Australia is not only growing but also brimming with potential benefits for investors, offering a promising future. Australia’s healthcare sector is projected to contribute 19.3% to overall employment growth between 2022 and 2032. From small consulting suites and offices to hospitals, there are various types of medical properties available to meet the diverse healthcare needs of Australians. Below is a summary of some of these property types

1. Medical Office Buildings (MOBs)

Overview:

Medical office buildings (MOBs) are typically multi-tenant facilities housing a variety of healthcare providers. They are used for outpatient services such as general practice, allied health services, diagnostics, and specialist consultations. These properties are common in metropolitan areas like Melbourne and growing regional centres like Geelong, Craigieburn, and Ballarat. They are often called specialist centres and are convenient hubs for patients to address medical needs.

Key Features:

• Outpatient Focus: MOBs are designed for non-hospital-based healthcare, offering GP clinics, dental services, physiotherapy, and other outpatient services.
• Convenient Locations: MOBs are strategically located near hospitals or within busy residential areas to improve patient accessibility.
• Integrated Care Models: Many buildings integrate different healthcare services under one roof, allowing patients to access various services in a single location.

Why Invest:

The demand for medical office buildings is driven by Australia’s ageing population and the shift toward outpatient care, which reduces pressure on the hospital system. Investments in MOBs are relatively secure as healthcare services are essential, making this type of real estate less sensitive to economic downturns. Please take a look at some of CPN’s successes in developing and leasing medical buildings here.

2. Public and Private Hospitals

Overview:

Australia has a strong healthcare system with a mix of public and private hospitals. Public hospitals, such as the Royal Melbourne Hospital and Alfred Health, provide a broad range of services to the community. Private hospitals, including Epworth and Cabrini Health, cater to patients seeking elective surgeries and specialised treatments. Hospitals are large-scale facilities offering inpatient, outpatient, and emergency services.

Key Features:

• Comprehensive Care: Hospitals provide a wide range of medical services, from emergency care to specialist surgeries and rehabilitation.
• High Infrastructure Standards: Hospitals require significant capital investment due to the need for advanced medical equipment, operating theatres, and intensive care units.
• Public vs Private: Australia’s public hospital system is government-funded, while private hospitals are operated by private healthcare providers and require private health insurance for many services.

Why Invest:

Private hospitals in Australia provide an attractive investment opportunity, particularly for those interested in partnering with healthcare providers on new developments or expansions. The demand for healthcare services in both metropolitan Melbourne and Sydney remains strong, offering stable, long-term returns.

3. Aged Care and Retirement Villages

Overview:

With Australia’s ageing population, there is growing demand for aged care and retirement villages. These facilities range from independent living units to full-service nursing homes, providing accommodation and healthcare services for older Australians. Locations in regional Victoria, such as Bendigo and Shepparton, are seeing a rise in demand as more retirees seek affordable living options outside of Melbourne.

Key Features:

• Integrated Healthcare: Many aged care facilities have on-site healthcare services, including general practitioners, physiotherapists, and nursing staff.
• High Demand: The ageing population and longer life expectancies are driving demand for aged care facilities across Victoria.
• Government Regulation: The government regulates aged care facilities in Australia, setting strict standards for care and facilities.

Why Invest:

Australia’s ageing demographic presents a strong case for investment in aged care and retirement villages. The demand for these services is increasing, particularly in areas with a high retiree population. With stable long-term leases and government funding, aged care properties offer reliable investment opportunities.

4. Rehabilitation Centres

Overview:

Rehabilitation centres play a crucial role in Australia’s healthcare sector, providing specialised care for patients recovering from surgery, injury, or chronic illness. These facilities offer both inpatient and outpatient services, focusing on physical, occupational, and mental health rehabilitation.

Key Features:

• Specialised Care: Rehabilitation centres cater to patients requiring ongoing support to regain function and independence after medical events.
• Holistic Treatment: These centres offer comprehensive care from allied health professionals, including physiotherapy, mental health support, and long-term care for patients with chronic conditions.
• Diverse Services: Facilities may include drug and alcohol rehabilitation, post-surgical recovery, and injury rehabilitation.

Why Invest:

As demand for post-acute care and mental health services grows in Australia, rehabilitation centres offer significant investment potential. These centres provide essential, long-term healthcare services, making them stable investments.

5. Specialist Clinics

Overview:

Specialist clinics in Australia offer highly specialised medical services, such as oncology, cardiology, fertility treatments, and dermatology. These clinics are often located in medical office buildings or standalone facilities and cater to patients seeking expert care for specific health concerns. Often the space required for these facilities is less and depending on the service, converting an existing office or retail space with good foot traffic might be an option.

Key Features:

• Targeted Services: Specialist clinics focus on niche healthcare services, such as cancer treatment, heart care, and reproductive health.
• Outpatient Services: Many specialist clinics offer outpatient services, allowing patients to receive care without the need for hospitalisation.
• Rising Demand: With advances in medical technology and an ageing population, the demand for specialist healthcare services in Australia is on the rise.

Why Invest:

Specialist clinics offer investors the opportunity to tap into high-demand medical fields. With growing healthcare needs in areas like cancer care and fertility services, specialist clinics provide excellent returns, especially in Australia’s urban and regional centres.

Please take a look at some of CPN’s successes in developing and leasing specialist centres here

While demand for medical real estate continues to grow, the complexity and unique characteristics of the healthcare property market make it crucial to seek the assistance of a commercial real estate agent with specialised knowledge and expertise in the medical sector. Many key tenants have established companies and extensive industry experience, making professional guidance even more vital to ensure successful transactions. Contact us today if you would like to discuss opportunities to lease, buy or sell medical real estate.