Private hospitals are an integral part of Australia's healthcare system
How is Australia's healthcare industry changing?
Like retail, office, hotels and many other sectors, Australia’s healthcare industry is evolving to adapt to changing demographics, technology and consumer expectations.
15% of Australia’s population is aged over 65 and forecast to grow to 18% of the population by 2027 and 20% by 2037. This is significant as admissions to aged care centres and hospitals increases rapidly after age 70, placing great pressure on healthcare services.
Consumers' expectations are changing with the advent of technology. Newer operating models will emerge across the broad healthcare categories over the next decades. There is great pressure on stakeholders to provide and fund healthcare and the impact on real estate is expected to be significant.
How does the real estate sector respond?
- The number of private hospitals has increased in the past decade to meet customer demand
- Institutional investors are chasing healthcare real estate, driving down yields in the past five years
- More healthcare assets are being sold amid consolidation in the sector
What type of information can you find in the CBRE Retirement and Healthcare Series?
- Statistics and trends for the healthcare industry
- An overview of the broad healthcare categories: hospitals, retirement living and aged care
- Opportunities and risks
- Investment performance
Below is the first instalment of the ‘CBRE Retirement and Healthcare’ series, in which we look to provide an overview of hospitals, their investment performance, and outlook.