Colliers completes three strategic sales as owner-occupiers pay premiums to secure DA-approved sites amid accelerating demand for early learning assets
Colliers has completed the sale of three DA-approved childcare development sites in Western Sydney, highlighting strong demand for early learning assets and a growing trend of owner-occupiers paying premiums to secure sites for their own operations.
“Each of these sites is positioned in highly demanded residential locations with limited competition and strong demographic fundamentals. DA approval provides operators with certainty and speed to market which is why we’re seeing premiums being paid for quality sites in growth corridors such as Western Sydney,” said Jordan McConnell, National Director, Head of Premium Investments & Joint Head of Sydney West | Investment Services.
Leading the most recent transaction, 111-113 Victoria Street, Cambridge Park sold for $3,150,000 following a highly competitive on-market campaign that generated more than 95 enquiries and six formal offers. The 1,945m² site is approved for a single-storey, 98 place childcare centre with basement parking, 24 car spaces and a 691m² outdoor play area.
Colliers also completed the off-market sale of 1 Peter Street, Blacktown for $2,900,000 in just one week. The site is DA-approved for a 90 place childcare centre, highlighting the depth of demand for well-located assets and the strong appetite for quality development opportunities in this rapidly growing region.
Earlier this year, Colliers sold 31–33 Oxford Street, Cambridge Park, a prominently located site of 1,458m² benefiting from a DA Approved for a two-storey, 89 place childcare centre with underground parking. Located adjacent to Cambridge Park Public School and within close proximity to seven other schools, the property is strategically positioned to capture strong demand. Like the other transactions, this sale was to an owner-occupier, reinforcing the trend of operators driving competition and paying premiums for quality sites.
“Western Sydney continues to experience rapid population growth with young families driving demand for quality childcare facilities. Even with 205 known childcare developments in the pipeline across Western Sydney, ongoing population growth and strong demand for early learning facilities will leave a significant number of children without access to care. Hourly childcare fees in the Penrith SA3 region have grown by 7.78% over the past 12 months and with limited supply, the sector offers compelling long-term returns for investors,” added James Quick, Senior Executive | Investment Services.
Western Sydney currently has only 20,184 licensed childcare places for a market of 51,311 children under five, representing a supply-demand ratio of 2.5 children per licensed place. Blacktown City Council alone is forecast to grow from 430,460 residents in 2025 to 572,860 by 2046, with a median age of 34 years, underscoring the concentration of young families and the escalating demand for early learning facilities.
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