Why health and medical property demand is rising in Port Macquarie

Health and medical property are becoming an increasingly important part of Port Macquarie’s commercial market, driven by the region’s ageing population, expanding healthcare workforce and growing investment in health-related infrastructure. While healthcare has long been one of the area’s major employment sectors, a combination of demographic trends and precinct-level planning is reinforcing the sector’s long-term significance and increasing demand for property that supports medical, allied health and related service uses.

Healthcare is strengthening its role in Port Macquarie’s economy

Port Macquarie has a median age of 49, 11 years above the national average, with Council forecasting that 55% of the local population will be aged 65 and over by 2046 (Port Macquarie-Hastings Council, 2025). This older demographic profile is expected to support sustained demand for health, aged care and related support services across the region.

Reflecting this, Health Care and Social Assistance is already one of Port Macquarie's largest industries and remains one of the region’s top employment sectors alongside retail, education and construction (Port Macquarie-Hastings Council, 2025). With future employment growth also forecast to continue in health and other population-serving sectors, healthcare is expected to remain a central component of the region’s economic and employment base.

The Health and Education Precinct is accelerating this growth

Council’s long-term planning for the Port Macquarie Health and Education Precinct is one of the clearest examples of this structural shift. The precinct is intended to become “a centre of excellence for education, training and health” and is being positioned as a major strategic growth area for the region (Port Macquarie-Hastings Council, 2025).

Supporting this vision, current State Significant Development planning includes proposals for mixed-use health and education facilities incorporating clinical buildings, medi-hotel accommodation, childcare and commercial premises (NSW Planning Portal, 2026).

Separately, the NSW Government has committed $265 million toward infrastructure upgrades at Port Macquarie Base Hospital, including expansion of emergency, maternity and neonatal facilities, further reinforcing the hospital precinct’s role as a critical health infrastructure hub (Mid North Coast Local Health District, 2025).

What this means for commercial property

As healthcare activity expands, demand is likely to extend beyond traditional hospital infrastructure into surrounding commercial property markets. This may support increasing demand for medical suites, specialist consulting rooms, allied health tenancies, wellness operators, support services and other health-adjacent commercial uses, particularly in locations aligned with the Health and Education Precinct and surrounding medical catchments. Beyond direct medical and allied health demand, growth in healthcare employment and precinct activity may also support broader demand for office, accommodation, hospitality and service-based commercial uses in surrounding locations.

For owners and investors

• Medical and health-supporting assets near established health nodes may benefit from increasingly resilient tenant demand
• Surrounding commercial property may also gain strategic relevance as precinct activity supports greater demand for office, service and convenience-based uses

For occupiers and tenants

• Healthcare, allied health and support service operators may increasingly seek proximity to major health infrastructure
• Businesses in hospitality, convenience retail and professional services may benefit from increased worker, visitor and patient activity within surrounding precincts

For developers

• Health and education precinct growth may create future opportunities for medical, mixed-use and health-supporting development
• Over time, broader demand may also emerge for accommodation, retail and service-based commercial uses that support precinct activity.

Port Macquarie’s healthcare sector is already a major contributor to the local economy, but demographic trends and ongoing infrastructure investment suggest its influence on commercial property demand is likely to become more pronounced over the coming decade. If you are considering selling or leasing commercial property in Port Macquarie, Commercial Collective can help you position your asset in line with evolving market conditions and buyer demand. Speak with our team today to discuss your property strategy.