Mitchelton site with approval for aged care facility sells for $5m

23 February 2024

A vacant development site near leading medical facilities and retail amenities in Brisbane’s north will be developed into an aged care facility following its sale.

The 4,768sq m site at 1-7 Northmore Street in Mitchelton, adjacent to Brookside Shopping Centre, is approved for a 6,849sq m four-storey, 106-bed residential facility.

It was sold for $5 million in a deal negotiated by Knight Frank agents Christian Sandstrom and Sam Biggins.

The property, which is an amalgamation of four lots, was purchased by Southern Cross Care, who identified the site as a strong near-city residential infill opportunity due to its current approval.

Mr. Sandstrom said the Northmore Street corner site, which has frontage to Northmore Street and Osborne Road, occupied one of the best quality developments approved sites in Mitchelton.

“We had strong buyer interest during the Expressions of Interest campaign for the property, which resulted in four offers,” he said.

“Buyers were attracted to the opportunity to develop an exceptionally positioned site with a current development approval that is already cleared.

“The site is approved for a 106-bed residential facility, providing the opportunity to meet the market demand for an aged care product.

“The location is supported by premium medical facilities located nearby, such as the renowned North West Private Hospital and Samford Road Day Hospital, which will cater for the development of a new aged care facility.

“The property enjoys a prime position directly adjacent to the area’s predominant sub regional major retail hub, Brookside Shopping Centre.”

Mr. Biggins said there was strong demand for residential, aged care and seniors living accommodation in Brisbane, and around Australia.

“Along with growing demand we have seen increasing interest from property investors in the healthcare sector, which is only expected to strengthen,” he said.

“The defensive characteristics of the healthcare sector and the demographic tailwinds – with Australia facing an ageing population – are driving investment in the sector.

“Investors are increasingly looking to alternative sectors outside the traditional property sectors, and healthcare is attracting a lot of interest due to its secure investment fundamentals.

“Mitchelton is poised for a significant demographic shift in the coming decades, with an increasing ageing population, and combined with the surrounding suburbs including Keperra and Arana Hills, will drive accelerated demand for aged care accommodation in the area.”

Knight Frank’s recently-released Global Healthcare Report found investors remain confident in the long- term opportunities presented by the healthcare sector, with investment in care-related real estate reaching circa $38 billion in the year to June 2023, accounting for 4.3% of total global real estate investments.