australian property market wrap 06092023
It’s time for another wrap, with one listing located close to Sydney’s Central Station. Image: Canva.
  • Circa $60M in sales announced.
  • A beachside listing and sale are part of today's wrap.
  • Southport Private Hospital was acquired for circa $51M.

Some $60 million in sales have been announced across the eastern seaboard, from hospitals to high streets, and prime beachside property.

Among the listings for today’s wrap are a Western Australian office, a former hospital, and a unique heritage-listed property opposite Sydney’s Central Station.


DHPF acquires Queensland hospital for $51M

Dexus Healthcare Property Fund (DHPF) has today announced the acquisition of Southport Private Hospital for circa $51 million. The 90-bed mental health and rehabilitation facility, operated by Ramsay Health Care, is the first transaction for the $1.8 billion fund since its fully subscribed $220 million equity raise in July this year.

“We are pleased to extend our partnership with Ramsay Health Care, through the acquisition of this high-quality hospital, while supporting the delivery of essential health services to the Southport community,” said DHPF fund manager, Jemma Maddick.

“This investment is in line with the fund’s strategy of securing core, CPI linked, long WALE, high-quality healthcare assets leased to blue-chip operators in key areas with high demand for healthcare services. The 20-year lease provides income security, backed by Australia’s largest private hospital operator, Ramsay Health Care,” Maddick added.

Beachside commercial property in Adelaide sold at 4% yield

The fully leased property at 6 & 8 Moseley Street, in the Adelaide suburb of Glenelg, has sold for $5 million at a yield of 4%, reflecting the ongoing demand for the popular High Street retail precinct.

Situated in the heart of the beachside suburb, the property is situated on two titles with a combined land holding of approximately 1,300 square metres and features a wide frontage of over 30 metres to Moseley Street, rear access from Milton Street, and on-site parking.

“This is the lowest vacancy along the strip since 2018 and demand for property in the area will be further supported by the completion of the $50 million luxury hotel development on the corner of Jetty Road and Colley Terrace and the resurgence of international tourists,” said JLL sales executive, Simon Hilmgard, who with Claudia Brace, brokered the sale.

1014 High Street sold for $3.525M

The Armadale property has sold for a 3.4% yield after an auction campaign that generated significant interest from investors and owner-occupiers.

Four bidders competed for the two-storey 140 square metre building, which is on 208 square metres of land with rear access and on-site parking, and located in a prime section of High Street, Armadale near Kooyong Road and between Kooyong Road and Huntingtower Road.

The property is currently leased to Nimble Activewear and offered with a strong holding income, and a lease expiring in 2024.

For more on Melbourne’s retail strips read here.

1014-high-street-armadale-for-sale-fitzroys sold
The property sold at a 3.4% yield. Image: Supplied.


Former hospital hits the market

The former Como Private Hospital, located at 152 Como Parade in Parkside, has been listed with Savills’ Julian Heatherich, James Latos, and Benson Zhou.

Sitting on 4,765 square metres of land, the existing 3,500 sqm building is currently leased until September 2024, offering a significant short-term holding income of $528,000 per annum.

“It is rare that site of this scale is offered within the Bayside area,” said Savills’ James Latos.

“In addition to being within walking distance to the beach, train station, and shops, the surrounding area is home to some of Melbourne’s best schools. The holding income whilst obtaining plans and permits is also advantageous.”

Corner freehold opposite Central Station listed

A property at 36 Regent Street in Chippendale, Sydney, has been listed with Colliers.

The 246 square metre site is being offered with vacant possession and is currently configured with 440 square metres of building area.

“Demand is always strong around the education precinct, which is now evolving into Australia’s tech hub. There are billions of dollars worth of private and public capital being poured into the immediate area directly opposite this building, which includes Tech Central and Central Station,” said Colliers’ Miron Solomons.

“Add this to the existing and expanding Central Park Precinct, UTS, Sydney University, and Notre Dame University and you have some serious capital growth potential,” added Colliers’ Matt Pontey.

The building has an incredibly rich history having been built in 1926 in memory of former NSW Premier John Storey with the building originally serving as a dispensary to provide medical services to the local Chippendale community. The heritage-listed property is one of the most recognisable buildings near the Tech Central precinct.

The public auction will be held on 5 October 2023.

Midland office comes to market

Known as Cale House, the property is located at 52 The Crescent. The 2,194 square metre property comprises a 4,030 square metre building with 67 secure basement car parks.

The property is being marketed by Ray White Commercial’s Luke Pavlos and Brett Wilkins on behalf of a local investor.

The property is currently at 98% occupancy with a passing income of $1,249,807 per annum net. With a WALE of 2.02 years, the major tenant is the State Government, with other tenants including Crust Pizza and Baskin-Robbins Ice Cream.

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