Investor demand for childcare real estate continues to rise, with recent data highlighting strong sales activity across the sector. The latest transactions underscore confidence in the long-term stability and growth potential of early childhood education and care (ECEC) services.
The Stonebridge Victorian National Portfolio team reported four childcare asset sales nationally during June and early July. These transactions reflect sustained interest in properties linked to essential service sectors, including early learning.
Leading the recent sales was the Bluebird Early Education Centre in Koo Wee Rup, Victoria, which achieved $5.04 million through an Expressions of Interest campaign, delivering a 5.89 per cent yield. The asset was purchased by a first-time overseas investor, illustrating the sector’s appeal to diverse buyer groups.
Kevin Tong, Partner at Stonebridge Asia Practice, said the results highlight a shift in buyer focus.
“We’re seeing more investors prioritising fundamentals such as long-term leases, strong tenant covenants and strategic landholdings,” Mr Tong said.
Additional sales across other states attracted private investors, operators, syndicates and international capital, reinforcing the childcare sector’s broad market reach.
Industry data supports this trend. Forecasts suggest the Australian ECEC market will generate $22.3 billion in revenue in 2025, underpinned by an estimated $16 billion in government funding and steady growth over the past five years. This combination of policy support and sector resilience continues to strengthen investor sentiment.
Stonebridge Partner Rorey James noted that capital flows are being driven by the sector’s fundamentals.
“The essential service nature of early childhood education underpins its stability,” Mr James said. “We expect momentum to continue through the second half of 2025.”
With interest rate cuts forecast and a slowing development pipeline, competition for existing childcare properties is expected to increase. Analysts anticipate yields may tighten further, placing a premium on high-quality assets with strong operator performance.
The Stonebridge National Portfolio Team reported transacting 96 properties worth approximately $650 million in FY2025, many of which were linked to essential service sectors, including early childhood education.
Sustained investor confidence not only signals stability in the ECEC property market but also supports the development of high-quality facilities. Well-resourced services contribute to improved learning environments, helping deliver strong outcomes for children and families.
For further details on the recent transactions, visit:
