When people think of investing in commercial and industrial property, they usually search for offices, workshops and factories when looking online. So you might be surprised to learn that childcare assets are outstripping all other property sectors, and childcare is now the fastest growing sector Australia wide.
There are five main reasons for childcare performing so strongly:
- Childcare and early learning is becoming more affordable, because the Government is highly incentivised to have parents back to work and paying tax
- Federal Government support for childcare operators make them low risk tenants
- A low interest rate environment and favourable lease conditions are delivering sharp yields
- Childcare assets have more ease obtaining finance than other industries
- The growing WA population means the demand for childcare centres will only increase, so they are viewed as good long-term propositions
Savvy developers have foreseen the supply problem and there are some 60 centres in WA in either the build, planning or approval stage both in metropolitan and regional areas at the moment.
