Melbourne medical facilities listed amid surging healthcare market

The Clifton Hill property has hit the market twice without success.
The Clifton Hill property has hit the market twice without success.

A volley of clinics are hitting the Melbourne market and sparking a flurry of interest as the healthcare sector continues to emerge as the new darling of real estate.

One of the country’s biggest contraception and safe abortion providers, Marie Stopes Australia, is putting its long-held St Kilda East day surgery up for sale.

CBRE’s Sandro Peluso says the centre’s location will be a huge drawcard.

“Vacant healthcare facilities within such close proximity to the Melbourne CBD or St Kilda foreshore are in short supply – particularly those at this high standard,” he says.

The 438sqm site at 338 Dandenong Rd is being offered with a short-term income of $100,000 over a 12-month period and is close to the private Masada and Avenues hospitals.

The facility is well maintained with a doctor or allied-health business able to be up and running immediately following the previous tenant’s departure.

After a long history operating out of the tightly-held suburb, Marie Stopes is re-locating to a new facility nearby that is currently under construction.

Meanwhile to the north, a freestanding double-storey medical centre has been listed in the heart of Clifton Hill.

It is the third time the 379sqm property at 105 Queens Pde – overlooking Darling Gardens – has hit the market with price expectations of circa $3 million.

The property at 338 Dandenong Rd in St Kilda East is currently a day surgery.

CBRE’s Marcello Caspani-Muto says the property had not sold in 2018 and 2019 when listed with other agents.

But with increasing interest in healthcare assets, especially from owner-occupiers, his team is expecting strong interest.

“The owners formerly occupied the property as a chiropractic business, which began in 1994,” Caspani-Muto says.

“Previously, the vendor had been willing to meet the market, but also wanted the sale to reflect the underlying value of its asset – so, opted to retain it.”

Peluso adds that activity in Clifton Hill has been high in recent years, making a medical asset an attractive prospect.

Healthcare assets have been considered a hot ticket since 2017.

According to CBRE research the number of private hospitals has risen in response to a growing and ageing population.

These have returned investments on average of 16 per cent per year over the last decade.