Key Market Themes
The growing demand for healthcare services is underpinned by:
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Ageing population – Australia's population growth rate is 2x that of advanced economies. The ageing population is forecast to grow from 15% to 18% by 2027
- Strong growth of public and private healthcare expenditure – Forecast to increase by 3.3% in 2021-22 to $219.1 billion
- Technological advancements – Modern advancements in science and technology have assisted in improving health and life expectancy and increased public awareness of proactive healthcare options
Public Healthcare System Under Stress
As a result of these trends the Australian public healthcare system is under increasing stress:
- National median wait time for elective surgery has increased 50% over the last 15 years2
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Increasing dependency of public patients on private hospitals; public patient demand for private hospitals has grown at 9.8% p.a. over the last 5 years2
Implications for Healthcare Real Estate
These stresses on the public healthcare system are resulting in growing demand by private healthcare operators for high quality healthcare real estate. The Elanor Healthcare Real Estate Fund's property assets include multi-tenanted medical centres, day surgeries and specialised facilities with a focus on outpatient services. These healthcare providers have a significant investment in their facilities and location. The Fund's properties are well located in highly desirable catchments in close proximity to major health infrastructure, including public and private hospitals.
The Elanor Healthcare Real Estate Fund directly benefits from the significantly growing demand for healthcare services and is well positioned to provide strong income security and capital growth.
Source: 1. ABS Life Tables and Centre for Population, Intergenerational Report 2021.
2. AIHW, Admitted Patient Care 2019-20.
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