Childcare Property Market

Private investors are scrambling to secure essential services properties able to trade during COVID-19 lockdowns, ahead of a $65 million portfolio auction.

Early learning centres are proving hot property as the lucrative market booms — and 2020 only drove it more.

A Melbourne family has paid $22.2 million for a newly-opened Bunnings warehouse in Queensland, buying it sight unseen amid strong investor demand for ‘pandemic-proof’ commercial properties.

A Bunnings, fast food stores like KFC and childcare centres will feature in a $210 million commercial property auction as investors chase “pandemic-proof” essential services assets with long leases and big-name tenants.

Geelong’s booming drive-through coffee trade is set to provide a sweetener to investors as a Belmont childcare centre is offered at a major commercial property auction this month.

An Officeworks in Albury and a Melbourne childcare centre both sold for more than $10 million as investors chased regional commercial assets and early learning properties in portfolio auction sales. Burgess Rawson sold 37 of the 38 commercial properties on offer at its portfolio auctions this week for a combined $131 million.

The federal budget’s focus on jobs growth, business tax relief and infrastructure investment is expected to have knock-on benefits for commercial property, as consumer sentiment, investment and spending power rise.

While residential housing was a key focus of the budget, less was explicitly mentioned about commercial property. However, as the places where Australians do business, many of the announcements in the 2021-22 budget will impact the commercial property sector, both directly and indirectly.

The substantial freehold property that’s home to an inner city childcare centre is being eyed off as a potential development site in Geelong.