Childcare Property Market

While many of the changes brought on by the pandemic have been temporary, others are permanently reshaping the commercial landscape. Here are five predictions for 2022 and beyond.

The hunger investors have for ‘safe harbour’ assets has been evident throughout 2021 and is expected to be on show again in Burgess Rawson’s December portfolio auctions, which include 15 fuel and convenience assets and 13 childcare investments across metropolitan and regional Australia.

The sale of five childcare centres – with a national record price for one and a state record for another – fired Cushman & Wakefield’s to impressive results for its final 2021 auction.

As states emerge from lockdowns and Australia prepares to open its borders, bullish investors are clambering for prized assets. Burgess Rawson expects this sentiment to drive its November portfolio auction skywards.

Childcare is all the rage when it comes to commercial property, with investor interest at peak levels and yields at historic lows. But does it pay to develop, rather than buy?

As the demand for childcare grows, so too does the demand for childcare real estate, with government rebates and social and demographic changes underpinning the success of these assets. While sales volumes have remained subdued …

A $98m mega-deal has been signed for 12 childcare centres, all but one in Melbourne, as early learning real estate has been branded “the new bank”.

A humble four-bedroom house on a quiet Epping street is set to become a large child care centre after it set a new Australian property record at an epic auction.

Investor demand for essential services that have remained resilient during COVID remains at record levels, with childcare and fast food the star performers. As we emerge from lockdowns, this hunger will likely intensify.