Australian Healthcare Property Powering Steady Growth – Burgess Rawson from CBRE

The Australian healthcare property sector continues to demonstrate strong growth, underpinned by demographic trends and sustained government investment. 

Increasing demand for medical services, an ageing population, and expanded health infrastructure spending are driving investor interest in healthcare real estate as a resilient and essential asset class. 

According to the Burgess Rawson from CBRE Healthcare Industry Insights Report, government initiatives bolstering public hospitals, bulk billing, and healthcare infrastructure underpin this growth.  

Transaction volumes highlight metropolitan Victoria as the most active market with $167 million in investment sales over 2024 and 2025, followed by metropolitan Queensland at $154 million and New South Wales at $95 million.  

Regional markets remain healthy with regional New South Wales recording $106 million, Queensland $80 million, and Victoria just under $50 million in sales. 

Burgess Rawson from CBRE Director of Data and Research, Jesse Lapham, said, “There was over $800 million in healthcare investment transactions over 2024/25, with this asset class well positioned for continued growth as demographic demand and government policy combine to attract institutional capital seeking stable, long-term returns.”  

This outlook is reinforced by the 2024–25 Federal Budget, which allocates approximately $142.4 billion to health and aged care, with health expenditure alone projected to reach $125 billion by 2027–28, highlighting the sector’s strong long-term potential. 

Burgess Rawson from CBRE Director Geoff Sinclair notes, “These specialised healthcare services benefit from resilient tenant profiles and growing community reliance, making them highly attractive to investors.” 

“Within this expanding market, certain asset types are performing particularly well. Radiology and dental facilities, for instance, have seen significant cap rate compression of circa 95 basis points over the past year, reflecting strong investor demand and confidence in their stable income streams.” 

According to the report, over the past year metropolitan healthcare assets commanded an average sale price of $5.41 million with an average yield of 5.87 per cent, while regional properties traded at lower average prices of $3.457 million but offered higher average yields of 6.54 per cent. 

The gap between metro and regional yields has remained steady between 50 and 100 basis points from 2022 to Q3 2025, consistent with differing market risk profiles.