We have been closely monitoring the performance of all asset classes during 2020. Whilst the economy has faced significant COVID-19 headwinds, there have been several categories outperforming the wider market.
These include:
– Healthcare
– Specialised Logistics
– Other essential service providers
We believe the long-term prospects for these sectors are very strong; particularly Healthcare.
Healthcare demand is linked to the ageing population and longer life expectancy. The Australian Bureau of Statistics are forecasting the population in the 65+ age bracket is set to increase by 3.5% pa for 2019 – 2029.
Interestingly, 80% of Australians are living with long-term health conditions that require ongoing care.
From a commercial investment perspective, there are several compelling reasons to consider Healthcare as a viable investment:
> Strong lease covenants. The tenants are often established and run very profitable businesses.
> Tenant preference for long leases with fixed annual increases.
> High occupancy rate.
For more details, contact Matt Hoath on 0418 543 714.
