CBRE have released their three (3) part series report for 2024, the highly anticipated Childcare report is first of the rank. The childcare report analyses in-depth industry data, trends and forecasts.

Childcare has risen as a mainstream powerhouse in commercial real estate, rivalling healthcare in the recent years. The Australian Government's unwavering support, especially during the pandemic, has transformed perceptions, making childcare an essential service. The team has seen the transformation of these services, from child minding services to now families expect quality early learning.

Jimmy Tat said “Despite overall leasing transaction levels being lower in 2023, the demand for childcare assets has been resilient, with buyer inquiries for childcare centers rising by 24%. The sector has attracted more institutional capital and REITs, and yields have remained attractive.”

The subsidy reforms in 2022, a key element of the Labor Government's ‘equitable and affordable childcare’ policy. With the government subsidies this has made childcare services more accessible to low - middle-income households.
Sandro Peluso comments “Despite a minor yield correction following a 4.25% interest rate hike, the childcare sector remains a resilient investment, with stable and highly competitive yields averaging 5.25-6.0%. Successful property transactions in 2022 and 2023 showcase the sector's potential, with yields as low as 4%.”
As the sector adapts to a new operating environment and evolving consumer expectations, smart investors are eyeing the incredible growth opportunities.

To request a copy of the CBRE 2024 Childcare Report please contact one the CBRE agents below. 

Related Reading:

NSW medical centre marks the first healthcare transaction of 2024 - CBRE  | Commo.

National Childcare Portfolio Poised To Start 2024 With A Bang

Generational Doncaster Childcare Centre investment for sale in thriving Eastern Melbourne - CBRE 

Mildura childcare development leased to Country Bunch Early Learning by CBRE 

Vacant aged home care facility sold to offshore investor - CBRE