Investor demand drives more than $22 million in childcare sales

More than $22 million worth of childcare assets across Queensland changed hands during June alone, highlighting the continued strength of investor demand for quality early education investments throughout the state.

Led by the off-market sale of Guardian Childcare Everton Hills in Brisbane for $7.35 million at a 5.48% yield, CBRE's Josh Scapolan has completed a string of childcare transactions underscoring the depth of capital targeting the sector.

Other recent Queensland transactions include the sale of Goodstart Early Learning Labrador on the Gold Coast for $4.91 million at a 4.64% yield, Goodstart Early Learning Pacific Paradise on the Sunshine Coast for $4.2 million at a 4.18% yield, First Steps ELC Cairns for $3.75 million, and Goodstart Early Learning Boonah for $1.95 million at a 4.78% yield.

CBRE also sold via auction, Goodstart Early Learning Hurstville in Sydney for $2.67 million at a 3.65% yield, demonstrating continued investor appetite for high-quality childcare assets nationally.

Mr Scapolan said the volume of recent transactions demonstrated the continued appeal of the childcare sector to private investors and high-net-worth buyers.

"Over the past few weeks we've completed more than $22 million in childcare transactions, with strong competition across both on-market and off-market opportunities. Investors continue to be attracted to the sector's defensive characteristics, secure income streams and favourable demographic fundamentals," Mr Scapolan said.

"The off-market sale of Guardian Childcare Everton Hills in Brisbane is a particularly strong example of current market conditions. Quality childcare assets remain tightly held and when opportunities become available, there is no shortage of buyers looking to deploy capital."

Scapolan said investor demand was continuing to place downward pressure on yields, particularly for assets leased to leading operators in metropolitan and growth corridor locations.

"The results achieved across these transactions, including yields as low as 3.65%, highlight the depth of capital targeting the sector. We're seeing investors compete strongly for quality assets that offer long-term income security and strong underlying property fundamentals."

The recent sales reinforce childcare's position as one of Australia's most sought-after commercial property sectors, particularly in Queensland with demand continuing to outstrip supply for premium investment opportunities.