Australia’s Healthcare and Life Sciences property sector is set to more than double by 2028
The latest M3 Property Insight is out now. The new Australian Healthcare and Life Sciences Precincts Insight (June 2025) reveals Australia’s Healthcare and Life Sciences property sector is on track to more than double in value by 2028, growing from $5.2 billion to a projected $12.1 billion in just three years. Driven by rising demand for medical services, sustained public and private investment, and an innovation-rich precinct model, the sector is transforming the way healthcare is delivered, developed and commercialised across the country.
The Insight shows the sector has already grown 43% since 2019 and is now one of the most resilient and forward-looking asset classes in the country. With an expected annualised growth rate of 3.4%, Healthcare and Life Sciences precincts are fast becoming a cornerstone of Australia’s future property and innovation economy.
“This sector has moved from niche to necessity for institutional and private investors,” said Mitchell Enright, Director, Health at M3 Property. “Healthcare and Life Sciences precincts are now among the most investment-ready, innovation-driven parts of Australia’s commercial property market, with a strong growth runway backed by real demographic, clinical and economic trends.”
Precincts a model for innovation, investment
Healthcare and Life Sciences precincts have emerged as the most dynamic sub-sector in the healthcare property market. Defined by integrated hubs of hospitals, universities, research institutes, aged care, allied health, and residential or retail components, precincts have expanded rapidly across Australia’s major cities and regions. There are around 27 major precincts in operation or under development, with Melbourne, Sydney and South-East Queensland leading the way.
These precincts act as real-world laboratories that combine care delivery, medical research and commercialisation. A combination of Australia’s global reputation for IP protection, high rankings in research output (#8 in the Nature Index 2023) and government support, including initiatives like the $22 billion Medical Research Future Fund, the $750 million Clinical Trials Activity Initiative, and the $1.5 billion National Reconstruction Fund, have created fertile ground for continued growth.
“The precinct model is a perfect fit for Australia,” said Mr Enright. “We’re globally recognised for healthcare research and innovation, and these hubs bring together all the key players in one place. This model not only delivers better care, it reduces travel burdens, supports local jobs, and represents a standout story to international investors looking to back science-led, impact-focused infrastructure.”
View the full Insight at this link.
Australian Healthcare and Life Sciences Precincts Insight – June 2025
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