Australia’s population is surging. More than 27 million people now call this country home, and by 2033, that number will top 30 million.
As demand for essential services rises, investors are turning their attention to sectors that promise both stability and long-term growth.
Head of Colliers Premium Investments Victoria, Lucas Soccio, said the coming year was shaping up to be a turning point for assets such as healthcare, childcare and retail, as market conditions snap back and confidence rebounds.
“The sentiment in the market is improving, and confidence is being restored, underscored by the positive impact of the recent RBA cash rate cut and declining inflation on the market,” Mr Soccio said.
So, which investments are attracting the most attention, and what’s driving their appeal?
Medical Centres: A Prescription for Strong Returns
The healthcare and social assistance sector is Australia’s largest and fastest-growing industry, employing 15.6% of the workforce.
Industry analysis from IBISWorld predicts the sector will generate $218.4 billion in revenue, growing at 1.8% annually, driven by an aging population and rising demand for medical services.
For investors, medical property offers a rare mix of stability and long-term growth, with leases secured by healthcare providers and underpinned by strong government support.
Colliers data reveals a major shift in medical property investment, with Victoria’s transaction volume soaring from $44.3 million in 2023 to $184.8 million in 2024—a testament to growing investor confidence in the sector.
Childcare: A Growing Asset Class
Australia’s childcare sector is booming, fuelled by population growth and rising workforce participation.
Government projections show the number of children aged 0-4 will climb 20% to 1.7 million by 2046.
Meanwhile, national employment is set to rise 14.2% by 2033, further buoying demand for facilities to support working families.
Colliers data reflects this surge, with childcare properties accounting for 10% of all premium asset sales in Victoria in 2024, reaching $121.1 million—up from $79.3 million the previous year.
“Premium investment opportunities, such as childcare centres with strong underlying land value, are trading for the sharpest yields,” Mr Soccio said.
Retail Revival: Cashing in on Consumer Confidence
Despite economic headwinds, Australia’s $400 billion retail sector continues to prove its resilience, with national retail trade showing a solid 3.8% year-on-year growth as of January 2025.
Key drivers making retail properties attractive include:
- Strategic locations – High-traffic shopping centres, main streets, and arterial roads provide steady foot traffic and tenant demand.
- Long-term leases – Many retailers secure 20-year-plus leases, ensuring stable returns.
- Retailer reinvestment – Businesses frequently upgrade and personalise their premises, enhancing property value over time.
With these advantages, retail assets continue to deliver both capital growth and reliable returns.
2025 and Beyond: What's Next for Premium Assets?
With market conditions trending upwards and buyer confidence strong, premium assets are firmly positioned for long-term success, according to Mr Soccio.
“The premium investment market is set for a robust 2025, buoyed by positive trends that have carried on from last year, improving market conditions, and heightened buyer confidence,” he said.
“All three assets are expected to attract lots of interest from savvy investors looking to capitalise on strong population growth and high employment.”
