Hospital Infrastructure Boom: How $160 Billion in Medical Projects is Shaping Property Markets Across Australia

A report commissioned by Fresh Start Advisory and compiled by research firm Hotspotting has identified 307 major hospital and medical center projects across Australia, each valued at a minimum of $100 million. The combined estimated cost of these developments exceeds $160 billion, and the analysis examines potential correlations between these infrastructure projects and property market trends in surrounding areas.

Regional Distribution of Projects

According to the report, the number of projects in each state is as follows:

• New South Wales: 122 projects
• Queensland: 84 projects
• Victoria: 80 projects

The analysis identifies Queensland as having four of the top ten regions forecast for property value increases.

The top hotspot named is Coomera, Queensland, where two major hospitals are planned or under construction.

Selected Regional Case Studies

The report provides specific data points for several locations, highlighting significant growth in areas with major medical infrastructure:

Coomera and Surrounding Suburbs

(Upper Coomera, Pimpama, Willow Vale)

Two major hospitals are under construction or proposed. The median house price in Coomera increased by 21% in the past year to over $1 million, with a five-year average annual growth rate of 13%.

Redcliffe Hospital

A $2.1 billion expansion is scheduled to begin this year. The median house price in Redcliffe rose by 11% in the past year to $950,000, with a five-year average annual growth rate of 14%.

Toowoomba

A $2 billion hospital is under construction. The median house price in the suburb of Cranley is $750,000, up 12% in the past year, with a five-year average annual growth rate of 14%.

Sunshine Coast University Hospital (Historical Example)

The report cites this $1.8 billion facility, noting that property prices have doubled since its opening.

Other locations mentioned in the report as notable hotspots include:

• Frankston (Victoria)
• Campsie/Bankstown/Camperdown (NSW)
• Footscray (Victoria)
• Thebarton (South Australia)
• Bundaberg (Queensland)
• Cobblebank (Victoria)
• Burnie (Tasmania)

Statements from Report Contributors

Frank Ambesi, CEO of Fresh Start Advisory, stated that hospitals create demand across all segments of the property market because they employ a diverse range of staff.

Ambesi added that suburbs near medical infrastructure attract both renters and buyers who wish to live close to their workplace.

Terry Ryder, founder of Hotspotting, stated that medical infrastructure projects have a greater effect on property markets than other types of infrastructure because they employ large numbers of operational staff on a long-term basis.

Ryder noted that hospital projects generate jobs during both construction and operational phases and often require up to 5,000 staff once fully operational.