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Updated: Mar 13
Recent figures show demand for childcare centres will continue to be high in 2022
Childcare centres are Australia’s fastest growing commercial real estate investment class offering attractive triple net returns compared to other commercial property investments. There is strong demand for quality, secure, income-producing assets. Now would be a great time to consider investing, particularly in Queensland.
According to new figures shown* the average daily fee for long day care across Australia is $117 per day. In New South Wales the average daily fee is $117, whilst in Queensland it is $113. The average fees are not that different for NSW and QLD but the cost of land and construction in these states differ dramatically, so investing in QLD achieves a much higher return on your investment .
Government support into the childcare industry throughout the pandemic also boosted investor confidence in this asset class in comparison to other commercial sectors such as retail and offices. A higher Child Care Subsidy is being introduced from March 7. This will effect roughly 200,000 families and make childcare more affordable for families, ensuring the demand for quality located childcare centres will continue. This new subsidy will add further stimulus to the childcare sector providing investors and developers with a highly desirable real estate asset class, with quality, triple net, high yielding long term Childcare Lease.
For potential return on investment, childcare centres are proving to be one of the strongest passive-income assets in an investment portfolio today.
Mollard Property Group have opportunities for experienced investors looking to secure long term investments or developments in the childcare sector. If you’re thinking of investing in a childcare centre, did you know you can significantly increase your return and decrease your equity requirement by developing. This is what Mollard Property Group can assist you with, talk to our experts about your investment objectives. Our in-house team offer a one-stop-solution for the entire development process, including site selection, securing a tenant, centre design, due diligence, and town planning - all prior to committing to a project. We assist you to de-risk the process whilst maximising your return through development.
If you're thinking of investing in a childcare centre, then talk to the experts about your investment goals, click here to contact us now!
*Source: ‘Map Lays Australia’s childcare crisis bare’ – By Today – 27th January 2022