The 2025 Federal Budget’s commitment to early childhood education is set to reshape Perth’s childcare property sector, according to Sterling Property Partner and childcare  investment expert Jake Wallman. 

With $5 billion allocated to build a universal early childhood education and care system, the Budget introduces key measures expected to drive further investment into the sector. This  includes the “3 Day Guarantee”, a $426.6 million initiative ensuring families receive a minimum of  three days of subsidised childcare per week. 

“Government-backed revenue streams have long made childcare an attractive investment,” Mr  Wallman said. “With these latest reforms, we expect to see increased demand from investors  seeking stable, long-term returns in Perth’s rapidly growing childcare sector.” 

Sterling Property recently brokered the $7.2 million sale of Nido Early School in Maylands, the largest individual childcare centre transaction ever recorded in WA. 

“This sale demonstrated the strength of Perth’s childcare market and the confidence investors  have in the sector,” Mr Wallman said. “Quality assets with established operators are in high  demand, and we expect further yield compression as competition intensifies.” 

To address supply shortages, the Budget includes a $1 billion Building Early Education Fund to  facilitate new centre developments and expansions. Additionally, a $3.6 billion workforce  support package will provide wage increases for early educators, improving operational stability  for operators. 

“Growth corridors across Perth, particularly in areas like Alkimos, Baldivis, and Byford, are well positioned to benefit from these initiatives,” Mr Wallman said. “For investors, these locations  present compelling opportunities to meet demand in high-growth regions.” 

While private investors continue to lead the sector, institutional interest is increasing as  childcare assets offer reliable income streams backed by government funding. 

“WA is no longer viewed as a secondary market,” Mr Wallman said. “The national attention on  the Maylands sale highlights how Perth has emerged as a prime destination for sophisticated  childcare investment.” 

Mr Wallman said the Budget’s emphasis on improving childcare quality and accessibility would  further enhance the sector’s appeal. 

“Childcare is no longer a fringe asset class. With supportive policy settings and strong  demographic tailwinds, it is now firmly positioned as a core investment option for both private  and institutional buyers,” he said. 

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