FOR SALE: Land near St Stephens Hospital is selling for more than $1 million an acre.
FOR SALE: Land near St Stephens Hospital is selling for more than $1 million an acre. realcommercial.com.au

This Fraser Coast land is selling for $1 million an acre

A PRIME piece of commercial real estate in Hervey Bay is fetching more than $1 million per acre.

Although the Urraween block at 10 Medical Place is only 1.72 acres in size, it is up for sale at $1.975 million.

The developer Glen Winney said the land's location and potential for commercial use gave it the high price tag.

"It's in a medical precinct and is unique in itself that the whole street is dedicated to medical and associated industries," he said.

"It does have medical zoning and would be good for medical use, and the other thing that would go well would be accommodation, whether it's apartments or a short term hotel because you'll get a lot of specialist doctors flying in for family members coming in to visit the hospital.

"At the moment there is no short stay accommodation available in the precinct." Although $1.9 million sounds like a lot of money, Mr Winney said the land was actually a great deal for commercial developers.

"For commercial land per square metre that's fairly cheap," he said.

Mr Winney said Urraween was one of the most popular parts of Hervey Bay to develop at the moment, with the booming health industry.

Real estate agent Tim Wessling from Raine & Horne works in residential property and said the area near Hervey Bay's hospitals was not only attracting commercial developers, but home buyers, too.

"Hervey Bay has an aging population, and it seems the retirees want to be closer to medical facilities, plus it's a quiet area as well," he said.

The real estate agent said having so many medical facilities in one place contributed to the value of the land in the area.

"Buyers are prepared to buy a premium for it," Mr Wessling said.

"The Hervey Bay area varies a lot [in property price] but I think buyers are willing to pay a premium to buy in a good, elevated area."