New LDC supply surges in WA with record growth of 7.2% recorded in Q3 2024

The number of new long day care (LDC) services opened in the three months ending September 30 in Western Australia rose 7.2 per cent compared to the same period last year according to the latest NQF Snapshot released by ACECQA. 

The increase is the largest on record and reflects very heavy activity in the development space, most likely in response to incoming migration related demand spikes across the state. As at the end of September there were 880 licenced LDCs, an increase of 29 per cent in five years.  

Notably the growth rate of new centres in WA had been gaining momentum since the beginning of 2024, with the most recent increase following two consecutive 5 per cent jumps in Q1 and Q2 2024 respectively. 

When comparing the performance in WA with other states and territories across Australia, the strong increases stand out with all others seeing growth rates rending sideways in a relatively moderate band. 

Of particular note is New South Wales, the largest state in terms of LDCs operating, seeing growth fall towards the 2.0 per cent level and Victoria, once the country’s fastest grower in terms of new LDCs, continue its gradual moderation down from more than 8.0 per cent growth rates pre-COVID down towards 3.0 per cent currently. 

On a nationwide basis, new LDC supply grew by 3.3 per cent year on year in the third quarter, slightly higher than June, but lower than those recorded towards the end of last year and well below the 4.5 per cent rate recorded in early 2020. 

Although it is difficult to identify with precision the forces driving more subdued LDC growth across the eastern seaboard states it is likely that high interest rates and uncertainty around policy direction in lieu of a looming Federal Election will be contributing factors. 

To read the most recent NQF Snapshot click here.