by Burgess Rawson from CBRE Head of Asian Investment
Asian investors are stepping up their presence in Australia’s healthcare real estate sector, drawn by the stability of these assets and the nation’s growing demand for essential services.
With confidence in the health market rising, offshore capital is increasingly targeting hospitals, medical centres and allied health facilities as secure long-term investments.
The recent seminar hosted by Burgess Rawson under the CBRE banner—held in both Sydney and Melbourne—drew a full house, underscoring robust industry interest in health-sector investment across Australia’s major cities. The events served as both an update and a catalyst for further engagement in healthcare infrastructure.
Investor sentiment appears to be on an upswing, with confidence up 4.8 basis points year-on-year, reaching 88 per cent.
National expenditure on health continues to outpace the global average: the Australian government allocates 17 per cent of its total expenditure to health, compared to an approximate 10 per cent global average.
According to Burgess Rawson from CBRE, the value of healthcare and life-sciences precincts in Australia is forecast to more than double over the coming years, fuelled by demographic shifts, increasing service demand, and strong public-private funding flows.
Transaction volumes reinforce investor confidence: Over the 2024–25 period, healthcare investment sales exceeded A$800 million and showed active regional allocation—with metro Victoria leading (A$167 million), followed by metro Queensland (A$154 million) and New South Wales (A$95 million). Regional NSW saw A$106 million, regional Queensland A$80 million, and regional Victoria nearly A$50 million.
Cap rate compression signals yield-driven demand: Radiology and dental facilities experienced cap rate compression of about 95 basis points over the past year, illustrating strong investor appetite.
According to an article in the Medical Journal of Australia, private equity activity into health is accelerating. In the six years to 2022, Australia saw 75 private-equity acquisitions of health delivery assets (hospitals, clinics, imaging, IVF). These acquisitions rose from just three in 2008 to 18 in 2022, with at least A$24.1 billion spent in the 39 deals where values were disclosed. General practice clinics represented a significant portion of acquisition activity.
Investor confidence in healthcare is intensifying with cap rate compression nearing 100 basis points in specialties like radiology and dental, clear evidence that investors view these assets as stable, reliable, and future-proof.
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