Over the last decade, Australia's population has experienced one of the strongest growth among developed countries, increasing by 16%, driven by an influx in overseas migration. With a rapidly rising population comes additional demand for essential services, leading to a growing need for real estate to support these sectors, classified as premium investments.

Childcare centres, fast-food establishments, service stations, and medical centres all fall under the premium investment bracket, playing a crucial role in the daily lives of Australians. Colliers national team of premium investments experts are managing the scale and geographic spread required to fulfil the development and demand for these types of assets.

Recent data from Colliers Research shows that medical assets accounted for 29% of all premium investments sold in Victoria in 2024, marking a 16% increase from 2023. Childcare assets represented 10%, a slight 1% increase from the previous year, and gym assets accounted for 3% of all premium investments sold, showing a minor 1% decrease.

Lucas Soccio, Head of Colliers Premium Investments Victoria, said, "The premium investment market is set for a robust 2025, buoyed by positive trends that have carried on from last year, improving market conditions, and heightened buyer confidence. The sentiment in the market is improving, and confidence is being restored, underscored by the positive impact of the recent RBA cash rate cut and declining inflation on the market."

The substantial increase in sales volume for medical and childcare assets last year compared to 2023 highlights the growing demand for essential services. In Victoria, medical asset sales in 2024 reached $184,864,000, compared to $44,276,000 in 2023, while $121,061,000 of childcare assets were transacted in 2024, compared to $79,301,000 in 2023.

Colliers Investment Services is bringing three strong premium investment offerings to market, including a childcare centre, a medical asset, and a retail asset, all located in Melbourne's metro market. These properties will be included in the National Premium Investments Portfolio. 

The fully leased premium freehold medical asset is situated on a high-exposure corner land parcel at 77 Devonshire Road, Watsonia, generating an annual net income of $329,383. Anchored by two secure medical tenants with an attractive WALE of 5.6 years by income and multiple option periods, this premium asset offers a true 'set and forget' investment with long-term stability and secure returns.

Robins Early Nest Learning Centre is a highly sought-after childcare investment in Cheltenham with substantial rental growth potential. The asset is prominently positioned opposite Westfield Southland, benefiting from an average daily traffic flow of 57,000 vehicles. The asset occupies a prime 911sqm corner landholding, offering excellent exposure and significant future development potential (STCA).

Additionally, a retail investment at 5/2 Stadium Circuit, Mulgrave, has been brought to market on behalf of Hawthorn Football Club, fully leased to Goodlife Health Clubs, which has been in operation at this property since 2006, generating a net income of $600,000 annually and fixed annual increases.

Mr Soccio said, "Premium investment opportunities, such as childcare centres with strong underlying land value, are trading for the sharpest yields. All three assets are expected to attract lots of interest from savvy investors looking to capitalise on strong population growth and high employment."