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SA stamp duty exemption sparks surge in medical investments
Medical assets in South Australia have emerged as a strong performer for investors, with larger, higher-value properties, attractive yields, and long-term demand supported by demographics and policy.
In the six months to November, South Australia’s commercial investors focused on medical assets, with eight leased properties selling statewide, totalling 8,500 sqm and delivering a median cap rate of 5.95 per cent.
Cushman & Wakefield said South Australia’s medical assets have been underrated, yet they lead the market with the largest facilities, with a growing median of 981 sqm, more than double NSW, and the highest sale prices, just under $6.1 million.
In comparison, Western Australia recorded the same number of transactions but only 2,500 square metres for $950,000 and a softer cap rate of 6.38 per cent, while NSW and VIC led in transaction volume.
Senior executive of investment sales at Cushman & Wakefield, Jack Dascombe, said that South Australia has been a quiet player in the medical, health and life science commercial investments.
“We foresee strong consumer demand for both general and specialised clinics, and consequently robust competition among buyers for assets underpinned by these operators.”
Dascombe said that the surge of investment in medical-grade assets could be tied to the state stamp duty exemption on commercial property, which has fuelled interstate buyers’ appetite.
The firm's data showed that over the past 12 months, nearly 40 per cent of the state's medical investments were purchased with interstate capital.
Additionally, Dascombe said that the demand was also linked to the state’s aging population, affordability, and a shortage of medical facilities.
“The demand isn’t just investor-driven; it’s structural,” Dascombe said
Across the state, South Australia has been seeing ongoing investment to meet growing healthcare demand, including the state government’s $1.9 billion health funding, the $3.2 billion Women’s and Children’s Hospital, and Flinders University’s $300 million HealthCARE Centre.
Visits to general practitioners, dentists, and allied health professionals are all up year-on-year, according to National Australia Bank's (NAB’s) latest Health Insights Report, and services related to the National Disability Insurance Scheme (NDIS) are surging.
“SA has the highest percentage of NDIS participants relative to its population, representing 8.8% of the country’s total.”
Despite the growing popularity of medical assets, Dascombe said that location remained key, with 55 per cent of South Australia’s medical investment sales in 2025 being within one minute of a major shopping centre and the rest within five minutes.
“For investors, the message is clear: South Australia continues to deliver quality over quantity.
“With robust fundamentals, government backing, and a growing demand for health services, medical-grade property in SA stands strong nationwide and is a strategic play more than ever,” he concluded.
