Th 5,835-square-metre Auchenflower property formerly occupied by Toowong Private Hospital has sold for $12.2 million, with residential, retirement, care and healthcare uses among the options identified for the site.
Colliers Campaign Puts Auchenflower Site On The Market
Colliers marketed 496 Milton Road by Expression of Interest under instructions from the appointed liquidators, with the campaign closing on 23 October 2025 at 4pm AEST.
Brendan Hogan, Troy Linnane and Chris O’Driscoll were named as the exclusive Colliers agents for the property. The completed sale followed a campaign that attracted interest from residential developers, healthcare operators and investors.
The property was offered with vacant possession. Its sale campaign identified two broad pathways: pursuing a residential development outcome or retaining and repurposing the existing improvements for healthcare or allied services, subject to conditions and approvals.
The site has frontage to both Milton Road and Cadell Street. It is close to Auchenflower Railway Station, bus services along Milton Road and the Wesley Hospital.
Toowong Private Hospital Site Has Several Possible Uses
The land is zoned Low-Medium Density Residential (LMR2). Potential outcomes identified for the property include boutique apartments, townhouses, retirement living, residential care and healthcare uses, all subject to council approval.
Three detached buildings remain on the property: the original purpose-built hospital, a former specialist medical centre and a character dwelling fronting Milton Road.
Hospital Closed In 2025
Toowong Private Hospital ceased operating in June 2025 amid financial difficulties. The psychiatric hospital was founded by Brisbane builder and philanthropist Noel Austin Kratzmann in 1989 and remained owned and operated by NA Kratzmann & Sons until its closure.
About 3,000 patients were treated there each year before the closure. The hospital provided psychiatric care as well as dedicated trauma and alcohol recovery programs for current and former military personnel, together with outpatient support services.
EY administrators were appointed in 2025 but found no viable option to keep the hospital operating. A preliminary report recorded net operating losses of $4.7 million by 2024, with declining patient admissions and inpatient care identified as contributing factors.
The $12.2 million sale places the Auchenflower property under new ownership, while any future residential, retirement living, residential care or healthcare outcome remains subject to council approval.
Published 19-August-2026
