Call the doctor: Why medical properties are in high demand
Demand in the medical sector is one of the strongest in the commercial property market as population growth and a pandemic drives interest.
A host of facilities across the region have been listed, sold or leased in 2021, with new facilities also on the drawing board.
The latest asset to pique interest of the sector is at 77-79 Swanston St in central Geelong.
The ageing medical centre has an advantage on other facilities offered as it’s in the city’s main hospital precinct where demand for space is at its highest.
Gartland Property Geelong agent Nathan Ashton said the 921sq m property had attracted interest for a number of uses.
Mr Ashton said property developers had looked at the prime site for its potential for a residential scheme.
“We’ve had a cross section of buyers both residentially and commercially,” Mr Ashton said.
“Residentially we’ve had a number of developers looking at it to either put two magnificent homes side-by-side or potentially a four-lot subdivision.”
But Mr Ashton said there had been significant demand from the medical sector, including GPs, allied health and specialists.
“The amount of medical inquiry, medical and allied health and dental, has been really strong.
“There has been a lot who are now in the position to go out on their own, or expand.
“We’ve had some that have looked at it that might be smaller operators that might look to refurbish it and there are others that will just knock it over and build something that’s two or three storeys high.
“The key is the carparking. For anything medical that’s the big drawcard.”
There are 12 car park spaces accessed at the rear via Canes Place.
Mr Ashton said the medical sector has really benefited from the pandemic and the region’s population growth.
“Obviously, the growth of Geelong is also a key factor, and that’s why we are getting some that are metropolitan Melbourne-based looking to come down this way because it’s another market they can tap into.”
Mr Ashton said space around the city’s main hospitals was at a premium.
“Most of the good medical suites and properties have been taken up by specialists,” he said.
“Whereas we’ve had a number of GPs and even different specialists just come and look because there is diminishing opportunity.”
Mr Ashton said expects the property to sell for more than $1.5 million when it goes to auction on October 15 at 1pm.
The existing facility has six consulting rooms, a central reception room and waiting room and numerous utility rooms.
The building offers data points to all rooms, a recently upgraded switchboard, multiple split system airconditioners, and hardwired smoke alarms throughout.