Finding and capitalising upon opportunities throughout the property market is essential to success, with one often overlooked domain in Adelaide being the commercial healthcare sector. Historically and recently, the South Australian government has invested heavily in healthcare infrastructure and medical research facilities, helping to foster a thriving local industry ripe for investment. Below, we look at how investors can get involved in this burgeoning space.
Why investing in medical and healthcare facilities makes sense
Several emerging factors are changing the healthcare dynamic in Australia, leading to new demand for medical facilities and services. This increased pressure due to patient requirements dictates the need for suitable infrastructure, creating new avenues for investors. So, what are some of these factors?
Australia is experiencing an aging population as life expectancy increases and fertility rates decline. This means more stress will be placed on the healthcare system in the future, increasing demand for primary care services and other medical infrastructure.
Primary care development
Hospitals are already under significant stress, but this issue will only become more concerning as the population ages. To address this problem, the federal government has emphasised the need for more primary care services, such as general practitioners, pharmacies and allied health professionals.
Chronic disease management
Today, an estimated 80% of Australians aged over 65 have at least one chronic health issue. As the population grows in number and age, the need for relevant medical services will become increasingly important. Meanwhile, a greater focus on mental health also necessitates new facilities.
How investors can benefit
Access to healthcare is one cornerstone of a healthy, modern society. Therefore, investors in medical facilities and healthcare services can be confident that demand will meet the costs of running their operation. As such, there is excellent potential for high rental yields and long-term value appreciation in the medical commercial property sector.
However, there are some complexities to understand before getting involved. Establishing a capable medical facility can require a higher upfront investment. Plus, many facilities are heavily regulated, requiring collaboration with local government authorities. In some cases, this means owners must factor in stricter legal and community considerations.
Speak to the experts
Get in touch with the experts at InStyle Property Management to get up-to-date information about the commercial healthcare property market. Our highly experienced team can help manage your investments to achieve your goals.