Medical infrastructure boom creating property investment hotspots
Property investors looking for the miracle cure should consider a trip to hospital.
In 2017 Adelaide completed the Royal Adelaide Hospital at a staggering construction cost of $3.53 billion, placing it firmly in the number one spot for most expensive single building in Australia at the time of completion, and by several reports the third most expensive building in the world.
Becoming home to more than 6,000, staff this has seen a massive boost to property values in the area. Rental demand shot up and investors have enjoyed strong capital growth returns throughout the area.
Adelaide now has the Women and Children’s Hospital being constructed at a budgeted $3.2 billion, due for completion in 2030. This will set more records for the state and set up the next wave of investors to reap the rewards.
Adelaide is quickly becoming one of the leading health care precincts in the world.
Investors can certainly capitalise on hospital infrastructure if they get in at the right time.
The best approach to maximise your returns is to buy before the project is finished, while values are still soft and then ride the wave of increased demand that comes with increased job creation in and around the area.
Further price growth will be driven by a student influx for training and additional interstate migration.
Hospitals present national investment opportunities
Adelaide isn’t the only area that investors should be looking towards for hospital hotspots. Around the country there are some other amazing opportunities.
In Queensland work has commenced on a significant $1.1 billion expansion to Redcliffe Hospital. The project will deliver 204 new beds, ambulatory care and a substantial expansion of existing services including theatres, birthing, endoscopy and a range of other clinical and support services.
The construction is expected to support 2,573 jobs and is due for completion in 2028.
Gold Coast University Hospital has been rated the seventh best hospital in Australia overall and was the top-ranked non-metropolitan hospital in the country.
Just 15 minutes from there is the suburb of Nerang in the Gold Coast hinterland, which offers a tree change lifestyle at a median house price of $814,000 with an average rental amount of $740 per week. This area offers investors a great opportunity to tap into a hospital hotspot at an affordable price point.
Looking to NSW, John Hunter Hospital in Newcastle is also among the top 20 hospitals nationally and just over half hour away is Medowie, an affordable area right near major medical infrastructure and a stone’s throw to the beaches of Port Stephens. Investors can expect to spend around $830,000 and there is lots of new housing stock to pick up if you want something more modern.
Joondalup Health Campus in Western Australia is a relatively new state of the art health facility that can offer an affordable sea change, with many buyers choosing to invest in the nearby suburb of Hillarys to get value for money. While houses can be priced above $1 million, the unit median price is still at $640,000 and $680 a week rent, representing good buying for many investors.
If you’re inclined to look around Victoria, you can’t go past Frankston Hospital, which has had significant upgrades undertaken over the past five years and continues to be upgraded.
Investors should be keeping a keen eye on the nearby suburb of Seaford on the outskirts of the Mornington Peninsula at $853,000 for the median and a median rental return of $550 a week. The yield will be at the lower end but capital growth prospects over the next few years show solid fundaments in this area.