Childcare industry: Mass exodus as centres flood property market

Lydia Kellner

First published 15 September 2025, 6:00am

Australia’s childcare industry could be in crisis mode, with a wave of centres hitting the market as nervous owners look to cash out amid staffing shortages, surging construction costs and a string of scandals that have rocked the sector.

Fresh figures reveal childcare centres are now being sold at the fastest pace in years, with more than $662m worth of assets changing hands nationally in just eight months.

On realcommercial.com.au alone, there are 84 childcare assets currently listed for sale –including 63 operating centres and 22 development-approved sites.

Victoria had the highest share of listings, with at least 25 childcare assets currently for sale, followed by NSW (24), QLD (22), SA (4), ACT (3), and the NT 1.

Experts say the sell-off reflects both booming investor demand for high-yield assets and potentially growing unease among operators spooked by bad press and day-to-day challenges on the ground.

Childcare centre sites are hitting the market in big numbers across Australia.

A record-breaking run

According to MSCI Real Capital Analytics, the June 2025 quarter saw the highest number and volume of childcare sales since December 2021 – when ultra-low interest rates drove record-breaking transactions.

It was also the second-highest quarter on record overall.

Brisbane has emerged as the nation’s childcare investment hotspot, with nearly $141m in sales so far this year.

Melbourne followed with almost $120m, while regional Queensland racked up $84m.

Sydney clocked $82m in sales, regional NSW $63m, regional Victoria $62m, Perth $54m, Adelaide $26.7m, the Gold Coast $17.7m and regional WA $11.3m.

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Eden Academy, at 11 Aspect Drive, Doreen, VIC, has been listed for sale.

‘Population is booming’

REA Group senior economist Anne Flaherty said childcare centres had long been a “set and forget” investment, with rental yields averaging above 5 per cent.

But Queensland was now leading the charge thanks to rapid migration.

“Post-Covid, there’s been extremely strong population growth into the state,” she said.

“Younger families are moving north from Sydney because they can’t afford housing there, and that increases the need for childcare facilities.

“Generally speaking, Brisbane does have a shortage when it comes to real estate – whether residential or commercial.

“With the Olympics coming, labour will be sucked into big infrastructure projects, which will only make it harder and more expensive to build.”

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Supplied Real Estate Lot 4001, 4 Kings Central, Werrington for sale via Private Treaty for
$3,500,000 An outstanding opportunity to acquire a DA approved with CC in
progress, 118-place childcare development site within Lendlease's master
planned Kings Central estate. Potential rental income of $590,000* per annum,
equating to $5,000* per place upon completion.

Lot 4001, 4 Kings Central, Werrington has been listed for sale with a price guide of $3.5m. The site comes with DA approval for a 118-place childcare.

Why so many are selling

But while demand from investors remains strong, the spike in listings has raised eyebrows.

Ray White Commercial head of research Vanessa Rader said the volume of centres on the market reflected a mix of factors – from construction costs to oversupply in some areas, and the fallout from recent childcare scandals.

“There’s the question of, why are (established centres) for sale? That’s a really interesting one,” she said.

“A lot of people are freaked out about what’s going on in childcare right now. Staffing is difficult, and then there are those cases of misconduct that have come to light.

“So some centres just aren’t performing as well as expected, and owners who bought at the right time might be happy to sell and move their money into something different – especially while the sector is under so much scrutiny.”

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Supplied Real Estate Eden Academy, located at 282-288 Geelong Road (Princes Hwy), West
Footscray VIC, has been listed for sale via Expressions of Interest.

Eden Academy, located at 282-288 Geelong Road (Princes Hwy), West Footscray VIC, has also been listed for sale via Expressions of Interest.

In July this year, a Queensland childcare centre where a worker was charged with torture was closed down by the Department of Education, almost a year after the alleged assaults took place.

Meanwhile, Victoria Police is investigating allegations of sexual assault against children in a number of childcare centres across Melbourne.

The ABC also reported on Thursday that a Sydney childcare worker had been charged with using children to make child abuse material.

Who is buying?

Ms Rader said investors were still circling, but their focus had shifted.

“In the past, the big 120-place centres were seen as the ultimate investment,” she said.

“That’s no longer the case because they’re harder to staff and more vulnerable to competition. Smaller centres are more manageable, and that’s where the demand is now.

“The sweet spot is up to $5m, maybe $7m. Beyond that, the pool of buyers shrinks.”

With interest rates down and government subsidies flowing into early childhood education, Ms Rader said established childcare businesses were still an attractive bet for cashed-up investors.

“People want somewhere safe to park their money outside residential,” she said.

“Childcare still ticks a lot of boxes. But the flood of listings we’re seeing now shows some owners are nervous – and they don’t want to be the last one left holding on.”

Supplied Real Estate Little Leo's ELC Killara for sale at 5 Manning Road, Killara, in
Sydney's prestigious Upper North Shore is available for purchase via Private Treaty.

Little Leo’s ELC Killara is for sale at 5 Manning Road, Killara, in Sydney’s prestigious Upper North Shore.

CHILDCARE ASSETS CURRENTLY FOR SALE ON REALCOMMERCIAL.COM.AU

TOPICS

Childcare industry: Mass exodus as centres flood property market

A record-breaking run

‘Population is booming’

Why so many are selling

Who is buying?

CHILDCARE ASSETS CURRENTLY FOR SALE ON REALCOMMERCIAL.COM.AU

SOUTH AUSTRALIA

VICTORIA

NEW SOUTH WALES

QUEENSLAND

NORTHERN TERRITORY

ACT

WESTERN AUSTRALIA

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