At Frequency, we specialise in guiding clients through complex projects, ensuring clarity and informed decision-making every step of the way. With healthcare expenditure on the rise, New Zealand is poised for transformation in this critical sector. This isn’t just an opportunity for investors; it’s a chance to shape the future of our communities. By investing in sustainable, innovative healthcare infrastructure, we can deliver both economic and social value. Here are the critical trends driving growth in Aotearoa New Zealand’s healthcare property sector:
Demand is Accelerating
- Longer life expectancy and a growing 65+ population are driving healthcare needs.
- OECD data shows that NZ ranked above average in healthcare expenditure as a percentage of GDP in 2022. This reflects our commitment to addressing chronic and infectious diseases and supporting an aging population.
Supply is Falling Short
- According to WHO data, New Zealand falls behind many countries in the number of hospital beds per 10,000 population. Health NZ projects that under the current model of care for assessment, treatment, and rehabilitation, nine out of ten beds will be occupied by people aged 65 or older by 2043. This includes – 28% of beds (1400 beds) for those aged 65-80 years 59% of beds (2900 beds) for those aged 80+ years.
Strong Investment Returns
- New Zealand does not currently record the total returns from healthcare assets, however, looking over the ditch we can see that healthcare property has consistently outperformed broader property indices, offering stable, long-term cashflows.
Take a look at our NZ Healthcare Property Market – At a glance report below
For more information or to discuss further, please contact Frequency Executive Associate, Michael Holloway, or Associate Samuel Huang.