Baby boom turns heads towards Preston childcare
A baby boom in Preston means there could be a tug of war between buyers as they vie to get their hands on a childcare centre.
Soaring population growth projections have made the state-of-the-art playrooms at 235-239 Murray Rd hot property.
The 1645sqm is one of the largest single blocks in Preston. A long-term lease is held on the land by Inspire Early Leaning Journey, which has space for 130 children.
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CBRE Victorian health, aged and child care director Sandro Peluso says there will be increasing demand for child care services in Preston.
“With an expected increase in population of over 84% by 2041, the area is a hotspot for property investors and even land bankers,” he says.
CBRE data shows Preston’s population growth is expected to increase by 3.19% annually, which is more than double the Australian suburb average of 1.4%.
Peluso expects significant local and offshore interest during the campaign, which is taking expressions of interest until mid-September.
CoreLogic shows the land last sold for $2.3 million in 2014, prior to the new centre being built. Three separate blocks were combined for the sale four years ago.
Buyers can expect to enjoy an annual income of $527,280 for at least 15 years, according to the listing.
CBRE’s Josh Twelftree says it’s not yet known what the property will sell for, but most childcare centres will sell between 5.5 to 6.5% of their expected total return.
The centre is one of the best in Melbourne’s north for children, with modern play equipment and synthetic grass. The site’s proximity to Preston train station makes it easy for parents commuting to work.
This article from Leader Newspapers originally appeared as “Preston’s expected population boom makes child care centre a hot option”.