Growing demand for secure, long-term investments underpinned by healthcare sector tenants has seen more than $94.6 million in medical-grade leased investments change hands over the past year, Colliers researchers have found.<\/p>\n
Shifting investor priorities and global economic uncertainty is seeing South Australians move into the space, particularly the growing population of \u201cactive retirees\u201d.<\/p>\n
The average yield for medical leased investments in South Australia has compressed to 5.6 per cent in 2025 from 6.19 per cent in 2024 \u2013 reflecting the growing demand for the asset class, Colliers South Australian executive for investment services Jack Dascombe said.<\/p>\n
\u201cThis surge in activity underscores a broader trend: investors are increasingly prioritising stability, and few sectors offer the resilience of healthcare,\u201d Dascombe said.<\/p>\n
The market for medical-grade is also outpacing supply, Colliers said.<\/p>\n
While only 3 per cent of new listings on RealCommercial in SA were classified as \u201cmedical consulting\u201d, 11 per cent of all property searches include this category \u2013 meaning demand is 3.5 times more than supply.<\/p>\n
The variance is driving competition and compressing yields, Colliers said.<\/p>\n
A demographic shift, where by 2051, the number of SA residents aged over 80 is projected to increase by up to 146 per cent and the \u2018active retiree\u2019 demographic is set to grow by 30 per cent, means there is a long-term need for health infrastructure.<\/p>\n
This means the asset class is a \u201cfuture-proof investment\u201d, Dascombe said.<\/p>\n
\u201cMedical and allied-health tenants often sign long-term leases with multiple renewal options as they have a preference to remain in one location, often due to patient loyalty and specialised fit-outs,\u201d Dascombe said.<\/p>\n
\u201cThis makes them a highly attractive tenant for investors.\u201d<\/p>\n
The Colliers executive said the trend was reflected in transactional data, with 70 per cent of medical leased investments sold in Adelaide over the past year-and-a-half having a lease tail of at least five years.<\/p>\n
\u201cInvestors are being more selective in the assets they purchase, with more groups choosing higher-grade investment opportunities,\u201d he said.<\/p>\n
A comparatively low cash rate, economic uncertainty and global instability is pushing capital to safer, income-producing assets.<\/p>\n
\u201cInterestingly, the demand for medical-grade investments is not limited to modern facilities,\u201d Dascombe said, noting half of all medical and allied-health practitioners in the Adelaide CBD operate from character premises.<\/p>\n
\u201cCharacter properties, typically pre-1950s buildings with distinctive architectural features, are gaining popularity among healthcare operators,\u201d Dascombe said.<\/p>\n
\u201cOf the character buildings sold between December 2022 and March 2025, 25 per cent were either leased to or purchased by medical professionals.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Growing demand for secure, long-term investments underpinned by healthcare sector tenants has seen more than $94.6 million in…\n","protected":false},"author":2,"featured_media":5543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":["post-5542","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-au","tag-australia","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/5542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=5542"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/5542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/5543"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=5542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=5542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=5542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}