Childcare Assets To See Strong Demand In 2023

The security of childcare assets is likely to see the sector continue to perform strongly in 2023 according to experts.

Ray White Commercial Head of Research, Vanessa Rader, said childcare assets have become attractive during the pandemic.

“The ‘set and forget’ nature of the asset assured investors a secure, long-term income stream and its affordable price point makes it attainable for a range of buyers,” Ms Rader said.

“While yields have been at a low rate for a long time, there is expectation these will pick up given the increased cost of finance.”

Ms Rader said the increases in government subsidies that are anticipated will spur the sector on and drive further growth in returns.

“Again, an asset class with high occupancy, assets which have the ability to be redeveloped or extended will benefit from an uplift in return with those well located in metropolitan areas likely to hold their value over regional assets,” she said.

“Remembering commercial property is a long-term asset, the underlying land value for many childcare assets is another positive for this asset class.”