Thursday, September 07, 2017

New Royal Adelaide Hospital (nRAH)… What’s the Prognosis?

The new Royal Adelaide Hospital (nRAH as they call it) has officially opened! Years in the making, it's been a very exciting week and one that will go down in the history books.

The impact of the move has been hotly anticipated for some time. Not only does it mean that 7,000 hospital staff and volunteers will be migrating to 
the north west end of the city, but there is also now an immediate demand for resources to sustain the hospital's 24/7 eco-system.

Hospital staff will be looking for cafes, restaurants and retail stores, all within walking distance from the hospital... and at all hours of the day, seven days a week.

However the impact is likely to be more broadly felt than just the restaurant and retail industries. History tells us that the property market will also be coming along for the ride. The Gold Coast and Sunshine Coast recorded market growth between 6.6% and 7.3% in response to the development of the new Gold Coast University Hospital, and Sunshine Coast University Hospital.

The proximity of nRAH to the CBD and amenities puts the inner western suburbs at the top of a buyer's shopping list. Sellers have experienced a surge in activity in the past 18 months, and new records have been set. With the median house price in Thebarton and Mile End growing by a staggering 26% and 24% respectively in the past two years, both areas have cemented themselves as million dollar suburbs in our state.

For landlords, there is even more positive news for the inner western suburbs. Looking to other capital cities and the role hospitals have played, it's interesting to see the correlation between these facilities and rents in the surrounding suburbs. Amid Perth's falling rental market in April 2016, Murddoch (home to the recently upgraded Fiona Stanley Hospital) was one of the only two postcodes to record significant rental growth over the 12-month period. Research shows that health infrastructure is a key driver of where Australians choose to live, ahead of employment as the most essential consideration. 

The new RAH is here, and the prognosis is good. 

With the injection of foot traffic, and cafe and 
restaurants being added to the area, we anticipate 
the north west end of the CBD to be a hot spot for some time. It's an exciting time to be investing in Adelaide.

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