Research indicates an immediate high demand for childcare places across Australia, with continued growth is expected. Given this level of demand, it is anticipated that new, high-quality childcare centres will be operating at full capacity within the first few months of operation.
Since 2011 the childcare property market has seen a record increase nationally. The total number of children attending care has increased by 29.8% in this period, and demand continues to outstrip supply. Stratacorp has identified specific regions with very little current or potential future competition.
Childcare centres operate within a tight regulatory framework and are highly sought after assets in the market place. A number of factors continue to drive growth in the childcare sector, including:
Well-publicised scarcity of places;
Population growth, focus on return to work and parent-friendly policies;
Government support including benefit and childcare rebate funding;
62% long day care centres are run by private operators; and
Average hourly fees rising steadily at 7.2% since 2005.
Why Invest Long Term?
Childcare centres are long-term, low-risk purchases that will deliver significant returns over time. Benefits to landlords include:
Valuation is not effected by residential market movement;
Proven early education provider in place;
Robust 15 to 28-year lease;
Low maintenance building;
Attractive low-cost asset to hold;
Substantial market demand for superannuation fund acquisition;
Attractive 3.5% rent increase and to market option; and
Great depreciation schedule.
Proven Early Education Provider
We have an established network of high-quality childcare operators. Our selection process ensures the right end operator (tenant) is in place with a secured 15 to 28-year lease.