Australian Childcare Investment Sales Surge as Investor Confidence Trends Upward

Continued investor confidence and appeal for core real estate fundamentals continues to fuel demand for childcare investment nationally, with the Stonebridge Victorian National Portfolio team transacting 4 childcare assets across June and early July. 

Headlining the month’s activity was the sale of the Bluebird Early Education Centre in Koo Wee Rup (Cardinia Shire Council), which transacted for $5,035,000 via an Expressions of Interest campaign. The sale reflected a 5.89% yield and was secured by a first-time Asian investor, sourced through the Stonebridge Asia Practice team. The purchaser had previously explored fast food and convenience retail assets with the Stonebridge team, reflecting a broader trend in 2025 of investors becoming increasingly sector agnostic. 

“This transaction reflects the evolving preferences of investors in 2025,” said Kevin Tong, Partner, Stonebridge Asia Practice. “We’re seeing a growing cohort of buyers focusing less on specific asset classes and more on underlying fundamentals such as long-term leases, strong tenant covenants, and strategic landholdings.” 

In addition to Koo Wee Rup, the team was involved in the transaction of three further childcare centres across the country, as summarised below: 

Property	State	Sale Price	Yield	Buyer Type
Bluebird Early Education, Koo Wee Rup	VIC	$5,035,000	5.89%	First-Time Asian Investor
Community Kids Haven, Redan (Ballarat)	VIC	$4,490,000	6.58%	Syndicate of Retail Buyers
Grow Early Education, Hervey Bay	QLD	$5,815,000	5.44%	Childcare Operator
Children First Early Learning, Ingle Farm	SA	$5,725,000	5.88%	Local Private Investor

The diverse range of buyer profiles – from operators and private investors to syndicates and international capital – highlights the broad appeal of the childcare sector. 

“With the Australian childcare sector forecast to generate $22.3 billion in revenue in 2025 — underpinned by 6.7% annual growth over the past five years and more than $16 billion in anticipated government funding — investor interest continues to grow. Capital is being drawn to the sector’s essential service nature and its proven stability,” said Stonebridge Partner, Rorey James. 

Stonebridge expects this momentum to continue in the second half of 2025, supported by a combination of macroeconomic tailwinds and sector-specific fundamentals. 

“Activity from all buyer types has picked up meaningfully in recent months,” said James. “Forecast interest rate cuts are already placing downward pressure on yields, while the slowing development pipeline is expected to support further yield compression and increased competition for existing stock.” 

The Stonebridge National Portfolio Team has over 30 years of combined experienced dedicated to blue chip retail, fast food, childcare, medical, fuel and convenience investments. With offices in Melbourne, Sydney, and Brisbane, the team has access to premium assets and a deep network of investors across Australia, having transacted 96 properties for a combined value of ~$650 million in FY2025.