
The Australian childcare sector is experiencing significant growth, driven by increased federal funding, population increases, and rising participation rates. With more government investment, the industry is expanding and improving the quality of care.
According to Cushman & Wakefield’s latest Australian Property Insights report on the childcare real estate investment market, population growth and a higher number of dual-income households are boosting demand for childcare services.
Additionally, the ongoing rise in participation of women in the workforce is highlighting the need for reliable and accessible childcare options.
Both federal and state governments have also put their support behind the sector with increased funding, subsidies and wage increases for childcare workers.
Currently in the growth phase of its life cycle, the sector is expected to continue its upward trajectory. Continued government support, demographic trends, and socio-economic shifts indicate a steady increase in demand for childcare, making this an important area of focus for future development.
The combination of these factors is set to shape the future of childcare, benefiting children, families, and the broader community, whilst Jake McKinnon, National Research Manager at Cushman & Wakefield and the author of the report, commented on the findings:
“The number of children, hours attended, and the participation rate in childcare continues to increase year on year. This consistent growth is a clear indicator of the sector’s vitality and the increasing reliance of families on these services. The growth in dual working parents reflects both the rising need for dual-income households and the societal recognition of the importance of early childhood education.
“The report highlights how government support for the industry remains strong, ensuring its sustained growth and stability. Federal funding initiatives and subsidies make childcare more accessible and affordable for families, which in turn supports higher participation rates.
“This government backing is a cornerstone of the sector’s growth and provides a stable foundation for its future development” said Mr McKinnon, and “despite the current interest rate environment, childcare yields have remained relatively stable with only a slight decompression, considerably less than some other sectors.
“This resilience underscores the essential nature of childcare services and the robust demand that underpins the sector. Investors continue to view childcare as a stable and secure investment, which is crucial in times of economic uncertainty.”