Healthcare Market
FY2027 | Quarter 1
The healthcare property sector continues to be underpinned by strong structural demand drivers, including population growth, an ageing population, increasing healthcare expenditure and ongoing government investment in healthcare infrastructure. Demand for healthcare accommodation remains strongest within established healthcare precincts. In particular, this applies to assets located in proximity to major public and private hospitals. Investor interest continues to be supported by the sector’s defensive income characteristics, long lease profiles and stable tenant demand. In addition, healthcare expenditure accounts for approximately 10% of Australia’s GDP. Government funding represents a significant proportion of total healthcare spending. These fundamentals continue to support leasing demand and underpin the long-term attractiveness of healthcare real estate (CBRE Healthcare Viewpoint, 2026).
Notwithstanding these favourable healthcare sector fundamentals, investment market conditions have softened throughout 2026 as a greater volume of medical assets has been offered to the market. Increased divestment activity from fund managers and syndicators has resulted in a higher level of available stock. As a result, supply currently exceeds investor demand across several market segments. While buyer interest remains evident for well-located assets with strong tenant covenants and secure lease profiles, purchasers have become increasingly selective and pricing sensitive in the current economic environment. Consequently, transaction campaigns are generally taking longer to complete. Also, capitalisation rates have softened modestly as vendors compete for a more limited pool of active buyers.
Notable healthcare property sector sales within Southeast Queensland include:
- 299 Scottsdale Drive, Robina sold in July 2026 for $24.25 million (6.19% yield)
- 301/309 1808 Logan Road, Upper Mount Gravatt sold in June 2026 for $7.8 million (5.98% yield)
- 695 Sandgate Road, Clayfield sold in February 2026 for $30 million (6.55% yield)
Notable healthcare property sector sales within regional Queensland include:
- Ochre Medical Centre, 37-41 North Street, Dalby sold in October 2026 for $10.80 million (7.29% yield)
- Galleon Way Medical Centre, 1/174 Galleon Way, Currumbin Waters sold in April 2026 for $4.925 million (5.87% yield)
