A prime development site opposite Auckland City Hospital is being offered to the market at a time when investors are increasingly concentrating on precincts where long-term demand is underpinned by infrastructure, employment and specialised economic activity, Bayleys brokers say.
Bayleys Auckland Metro director James Were, together with colleague Cameron Melhuish, is marketing the freehold property at 61-71 Park Road, Grafton, for sale by tender, closing at 4:00 pm on Thursday 3rd September 2026 (unless sold prior).
Occupying a prominent 749sqm (more or less) corner site with approximately 26 metres of frontage to Park Road, and 28 metres to Park Avenue, the property generates holding income of $188,155 per annum, while offering zoning flexibility and multiple pathways for future redevelopment.
Importantly, resource consent is already in place for a five-level, 2,517sqm healthcare building with basement car parking, while Auckland Council s Plan Change 120 (PC120), could allow substantially greater development intensity through a potential build height of up to 50 metres.
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Were says the combination of existing income, planning certainty and upside will appeal to the way sophisticated investors are assessing metropolitan landholdings.
"Rather than pursuing development opportunities based solely on residential growth forecasts, capital is increasingly directed toward precincts where population growth intersects with sectors that continue expanding regardless of short-term economic conditions. Healthcare is one of those sectors.
"Across New Zealand and internationally, hospitals act as anchors for wider medical, research and education ecosystems, attracting specialist occupiers, private healthcare providers, laboratories, consulting suites, accommodation and complementary commercial activity.
"As these clusters mature, well-located development opportunities within them become progressively more strategic as opportunities to establish new buildings become limited.
"This property sits at the centre of New Zealand s largest healthcare and biomedical precinct, directly opposite Auckland City Hospital and Starship Hospital, while adjoining the University of Auckland s Grafton Campus."
Together, these institutions support one of the country s largest concentrations of healthcare professionals, researchers and associated service providers, Were says.
Beyond the immediate medical catchment, the site also benefits from proximity to Auckland Domain, Newmarket and the CBD, together with convenient motorway access and rail connections through the nearby Grafton and Parnell Stations, further strengthening its appeal for future commercial and mixed-use development.
Bayleys Capital markets director, Cameron Melhuish, says the property s value extends well beyond its current improvements. The most resilient investment locations are those where demand is created by institutions rather than market sentiment, he says.
"Healthcare precincts are a good example. They continue to attract investment because hospitals, universities and research institutions create enduring demand for specialist businesses, clinical services and commercial accommodation, giving these locations a relevance that extends beyond individual market cycles.
"Additionally, the existing resource consent significantly shortens the pathway to development, while the proposed planning changes introduce additional flexibility should future owners wish to pursue greater density."
The property s holding income is derived from a diversified mix of established tenants occupying retail, residential and commercial accommodation under development-favourable lease structures. This enables purchasers to generate cash flow while evaluating development timing and planning outcomes.
Melhuish says that opportunities to combine immediate income with genuine strategic flexibility have become increasingly valuable as investors adopt longer investment horizons.
"Land in established metropolitan precincts such as Park Road is becoming more valuable because of what it surrounds as much as what it sits on. The combination of healthcare infrastructure, university investment, transport connectivity and planning evolution creates multiple pathways for capital to be deployed over time."
- Supplied by Bayleys
