Childcare Centres A Sought After Investment Opportunity

Childcare is a fast-growing industry which is a reflection on the nation’s ongoing population growth. According to the Australian Bureau of Statistics (ABS), Australia’s population sits at just over 23 million and we are fast heading towards 30 million.

In South East Queensland Savills tracked over $34 million worth of child care centre related transactions in recent years and they continue to generate strong investor interest. On a national level, with a severe lack of childcare centre options, we expect this demand to increase significantly.

From an investor’s viewpoint, the most sought after locations have been development sites, predominantly on large corner blocks in well-established suburban locations but there is also an emerging trend for locations near business parks and within, or close to, city centres. In terms of existing centres, there have been a number of transactions but these are usually tightly held assets.

With the changing dynamics of today’s society and our growing population it stands to reason that childcare centres can be classed as a gold class investment.