Burgess Rawson Childcare Industry Report issued as team marks $1bn in centre sales

Published on: 10/08/2020

Burgess Rawson, the early childcare education and care (ECEC) focused real estate and business broker, has released its 2020 Childcare Industry Insights report in which it reviews the key trends impacting the ECEC sector over the last ten years and confirms that it has reached the $1 billion in centre sales mark over the same period.

The key highlights of this year’s report are:

Average metro yields in the FY 2019/20 period were 5.63 per cent compared to 6.30 per cent in the previous year
Average sales value was $4.6 million in FY 2019/20 compared to $3.7 million last year
Average rental per licensed place was $3000 in FY 2019/20 compared to $2600 last year
Average number of licensed places per property was 86.5 in FY 2019/20 compared to 93.6 last year

In addition, the report identifies six key trends that have been most visible in the last 10 years as well as articulating the give main fundamental drivers that have contributed to the sector becoming an important investment class for both institutional and non-institutional investors.

Commenting Burgess Rawson director and childcare specialist Adam Thomas said “Sales results have been consistently strong across Australia with a trend over yield compression year on year”, and that “the milestone of $1 billion in sales highlights the strength of childcare as an investment class.”

With respect to more recent prices achieved for childcare centres Mr Thomas noted “The respective yields for recent sales at Cranbourne (5.98 per cent), Tarneit (5.80 per cent), Werribee (5.85 per cent) and Epping (5.99 per cent) were solid, which he said “reiterates that the fundamentals of commercial property are stable.”

To read this year’s Childcare Industry Insights report, please click visit www.burgessrawson.com.au/insights

By Jason Roberts, thesector.com.au