Published on May 19th, 2014
Question of the week revisited – 1 July 2013 – Impact of the New Hospital
What will the new hospital do to the local real estate market? Surely once it is finished there will be an influx?
The short answer is the new hospital will have a massive positive impact on the local the real estate market. The interesting thing is that we are seeing the positive outcomes already – we certainly don’t have to wait for it to be completed.
The longer answer involves looking at a few different reasons why and the timing around the hospital impacting the local economy.
- Influx of construction workers – This will have an almost immediate impact on the local market. I had the Construction Manager from the firm appointed to build the hospital in the office during the week. He is after 5 – 8 fully furnished homes for managers and foremen + their families for the next 18 months to 2 years. In addition they will be bringing in up to 150 employees at different times during the build! This influx of people will have the following effects:
- Rental properties will be even scarcer than they are today, rents will go up and properties suited to being investment properties will see an increase in demand
- With extra people and their families in town the rest of the economy will also get a boost – more kids at schools, more people eating out, more people using the services of existing businesses – in short more money floating around the local economy
- These workers and their families won’t live in a vacuum – they will bring different ideas, cultures and enthusiasm to the local community. The Bega Valley will be richer for the experience.
- Health professionals moving to the area: As the hospital nears completion we will see an influx of Doctors, Nurses and other health professionals moving to the area. This will add to demand for housing and should see prices going up. To take advantage of this extra demand we should also see some new land releases come available and new homes start popping up – again great news for the local economy.
- New markets: With the new hospital the Bega Valley will very quickly become a sort after location for retirees. Having the peace of mind of a state of the art hospital in addition to affordable housing, great climate and plenty of things to do will bring them here in droves. How long with this take to happen? We are already seeing people buying in the Valley who have just retired or are planning to retire in the next 5 years – they all mention the hospital as a major factor in their decision to relocate to the Bega Valley.
Elders Bega is excited about the next few years and the boom to the local economy the new hospital will bring. The new hospital should be the driving force in the local economy for the next decade and beyond.
Disclaimer: All thoughts are my own; you should undertake your own professional advice (legal, financial or astrological) before undertaking to purchase property