Most viewed: Medical centres attract interest despite COVID-19
Buyers are making a bee line for “pandemic proof” healthcare and medical properties as enquiries ratchet up across the commercial sector.
Medical and consulting listings took out two spots in the top 10 commercial properties on realcommercial.com.au last week, as industrial-warehouse and retail assets continued to gain popularity among the site’s most-viewed properties.
A medical centre in Melbourne’s St Kilda East was the most sought-after listing in Australia in the past week.
Other commercial listings to draw attention included a retail site on Hawthorn’s Glenferrie Road shopping strip, also in Melbourne, and a strawberry farm on Queensland’s Sunshine Coast at Coochin Creek, with 300m of water frontage on beautiful Pumicestone Passage.
Nerida Consibee, chief economist at REA Group, said the COVID-19 pandemic had heightened interest in medical and healthcare properties, largely because they had been immune to lockdown closures and could remain open.
“One of the things that COVID has done is accelerate interest in all sorts of health sciences, so much so that now a lot of the bigger institutional players at a global level have now set up a new asset class around health-related property,” Ms Conisbee said.
“At a local level, that means that it doesn’t just make things like medical centres do well, but also manufacturing facilities for medicine and health-related products. It extends to hospitals and anything that’s linked to people’s health and wellbeing, particularly during a pandemic.”
Ms Conisbee said medical and health commercial properties were also perceived to be less of a risk for investors, given they could keep operating despite lockdowns. This had heightened interest in the assets, she said.
The comments come as a medical suite on busy Dandenong Road in St Kilda East became this week’s most-viewed listing in Australia on realcommercial.com.au.
Josh Telftree, from CBRE Victoria, said the listing at 338 Dandenong Road, St Kilda East offered high exposure on a main road and had been angled towards an owner-occupier buyer.
The St Kilda East medical suite on busy Dandenong Road is attracting a lot of interest from buyers. Picture: realcommercial.com.au/for-sale
Mr Telftree said interest had been high for the property and more generally across health-related commercial sites as they had largely escaped the pandemic-related downturn.
“In that healthcare space, the last six to 12 months there has been a lot of interest from that buyer profile, probably because with the cost of capital, it’s cheaper now to buy as opposed to lease,” Mr Telftree said.
“With funding, the banks are very aggressive in funding owner-occupier. If a healthcare owner-occupier is going to use it for their own use, then a lot of the time banks will lend 90-100% as long as they have a history in healthcare.
“Our team specialises in that healthcare space and there are a few opportunities popping up.
“A lot of owners see healthcare as such an attractive proposition at the moment for both investors and owner-occupiers. Because it’s an essential service, it really stood out in COVID. Some of these medical centres were the only places that were open so there are a lot of investors and owner-occupiers gravitating towards that sector.”
Here are the top 10 most-viewed listings on realcommercial.com.au between 4 and 10 February.
1. St Kilda East, VIC: Marie Stope medical suite
338 Dandenong Road, St Kilda East
The medical suite is a fully-operational medical centre for two practitioners. Picture: realcommercial.com.au/for-sale
Prominently positioned, this quaint building on busy Dandenong Road was last week’s most-viewed commercial listing.
Set on a 438sqm landholding, the it currently serves as the St Kilda clinic of the not-for-profit private Marie Stopes International service.
The site is a fully-operational medical centre for two practitioners, quality fit-out and a short-term 12-month lease in place.
Offers on the property, which is expected to fetch a sale price in the high $1 millions, close on 3 March.
2. Hawthorn, VIC: Bustling retail site
655-657 Glenferrie Road, Hawthorn
The Hawthorn retail site is currently occupied by the Westpac Bank. Picture: realcommercial.com.au/for-sale
A prime corner retail site on Hawthorn’s much-loved Glenferrie Road strip was last week’s second-most viewed listing.
Currently occupied by the Westpac Bank, the 750sqm block offers 74m of street frontage, 20 car parking spaces and a versatile commercial opportunity for investors, developers and owner-occupiers.
The site is in close proximity to Glenferrie train station, Swinburne University, Scotch College and MLC and offers considerable foot traffic along the busy commercial and retail strip.
Expressions of interest close on 18 March.
3. Adelaide, SA: Funky retail-office space
The funky Adelaide retail-office proposition raises rental income of $165,000 a year. Picture: realcommercial.com.au/for-sale
A combined retail-office proposition in Adelaide’s city centre that is leased to three tenants attracted great interest last week, taking out third place on realcommercial.com.au’s top 10 list.
The fresh and funky property at 175 Hutt Street comprises two ground floor retail tenancies and an office upstairs, combined spanning 334sqm.
The building was completely refurbished in 2019 and now raises rental income of $165,000 a year.
JLL is taking expressions of interest.
4. Coochin Creek, QLD: Sprawling strawberry farm
1807 Roys Road, Coochin Creek
The Sunshine Coast property comprises 43ha of rural land over two lots. Picture: realcommercial.com.au/for-sale
This historic rural landholding in the Sunshine Coast hinterland attracted a plethora of clicks in the past week to make it one of the most popular listings in the country.
The property offers a variety of agricultural and lifestyle options, all on the doorstep of beautiful Pumicestone Passage.
Comprising 43ha of rural land over two lots, it incorporates a strawberry farm, modern four-bedroom home with a swimming pool and jetty access and a 300m frontage to Pumicestone Passage.
Expressions of interest close on 4 March.
5. Yatala, QLD: Well-positioned retail asset
The Yatala property fronts the Pacific Highway. Picture: realcommercial.com.au/for-sale
Last week’s top listing took a dive to fifth place this week.
Currently tenanted to new café Brewed on Cuthbert on a seven-year lease, the 216sqm property at 11/61 Cuthbert Drive, Yatala has seen a flood of enquiries from investors.
It fronts the Pacific Highway frontage and has 16 car parking bays, as well as a covered alfresco area and storeroom.
The sale of the property, which attracts $92,000 in rental income annually, is being conducted by negotiation.
6. Wetherill Park, NSW: Freestanding warehouse and office
The Wetherill Park site is set over two levels. Picture: realcommercial.com.au/for-sale
A freestanding warehouse and office, this large property hit the top 10 most-viewed commercial listings after just six days on the market.
The 1161sqm site includes a large hardstand with dual driveways for container loading and unloading and access to the building by two container size roller doors.
The office accommodation is set over two levels and is air-conditioned.
It is due to go to auction on 16 March.
7. Heidelberg West, VIC: Fully-tenanted industrial estate
57 Northern Road, Heidelberg West
The fully-tenanted Heidelberg West site yields $32,000 a year in rental income. Picture: realcommercial.com.au/for-sale
Returning $32,000 a year, this freehold property in the Heidelberg West Industrial Estate is fully tenanted until December with options of two further two-year terms.
The site spans 692sqm and is zoned industrial 3, comprising a warehouse, office and a storage space.
It goes to auction on 4 March.
8. Hackney, SA: Prime position medical suite
The Hackney medical suite has also been pegged as a development opportunity. Picture: realcommercial.com.au/for-sale
Located on the doorstep of the Adelaide Botanic Garden and opposite the National Wine Centre, this well-located Hackney property is perfect for medical consulting rooms but has also been pegged as development opportunity.
The building comprises four rooms with a reception and waiting room, as well as storage rooms and six onsite car parking bays.
It is due to go to auction on 26 February.
9. Bulimba, QLD: Three freestanding buildings
The Bulimba site is being offered for sale or for lease. Picture: realcommercial.com.au/for-sale
With three freestanding buildings on almost 3500sqm of land, there is plenty of flexibility at 70 Taylor Street, Bulimba.
The property is being offered for sale or for lease.
With space options from 150sqm to 2350sqm, the site offers multi-faceted use of storage, display, workshop and manufacturing and has been touted as an ideal option for a vehicle or industrial showroom.
There is a large concrete hardstand and rollerdoors to the warehouse for ease of access, as well as 20 car parking bays.
10. Coopers Plains, QLD: Entire shopping village
894-906 Boundary Road, Coopers Plains
The Coopers Plains site has been earmarked for significant redevelopment. Picture: realcommercial.com.au/for-sale
Marketed as a development site, this shopping village south of Brisbane at Coopers Plains comprises 4565sqm of dual street frontage and potential for a fresh new property.
The site has been earmarked for a significant development with the current zoning allowing 90% site coverage and demolition clauses written into the current tenant leases.
It will go to auction on 24 March, if not sold prior.
