The childcare property market has grown in popularity over the last few years, fuelled by low interest rates and recent years of undersupply of child places across Sydney. With the boom in housing construction also came the increase in supply levels to cater for the growing need for facilities at a time where population increases were elevated (particularly the natural increase segment) and the growth in the two income family structure.
As government subsidies not means tested these facilities were now in reach by many families including those with stay at home carers. Greater ratios of educators to children together with preschool learning programs now make these type of facilities a near necessity prior to the commencement of traditional school for many parents.
As an investor, this increase in demand by families has ensured vacancy levels remain minimal, similarly growth in daily rates has been encouraging while these assets have earned a reputation as stable earners. These premises are typically maintained to a high standard by the tenant.
Some locations across New South Wales however have seen an influx of development which has not met the local demographic needs of the community leaving some locations over supplied with growing vacancy concerns