I would say that it depends on what kind of area you’re interested in and what are your future plans.
If you want to pursue a career in medicine or surgery, then I’d strongly advise to apply for Observership at the hospitals in your area. Plus if you’d like to see how the medical system works here then definitely a hospital placement would be more useful.
If you plan to do GP, then definitely approach the GP practices. Although most consultations are done via telephone call, due to Covid pandemic, there are still some instances where people are asked to come in for face-to-face appointment, most of patients are ok and don’t mind someone observing from a side.
I hope this explanation helps you decide what suit you best.