Melbourne’s population is expanding at a pace that continues to reshape the city’s property market. As families move into new housing estates and residential developments in the north and west, demand for essential services like childcare is surging. For investors and developers, this trend represents a significant opportunity to deliver community infrastructure while securing long-term, stable returns.
Victoria’s population growth remains among the strongest in Australia. Despite recent economic headwinds, the state added more than 130,000 people in 2024, and projections suggest the population will reach 8.7 million by 2035. Much of this growth is concentrated in Melbourne’s outer suburbs, where new housing estates and transport upgrades are attracting young families.
This demographic shift is driving demand for childcare services. Families in these growth corridors need access to early learning facilities close to home, and existing supply often falls short. As a result, childcare centres have become a priority for both government planners and private investors.
GrayJohnson’s 2025 Economic & Property Market Update highlights the affordability of industrial land in Melbourne’s north and west. Sites between one and five hectares average $850 to $1,000 per square metre significantly lower than inner-city prices. These regions offer large parcels suitable for childcare developments, either as standalone facilities or integrated into mixed-use projects.
For developers, this affordability creates a compelling case for investment. Childcare centres can be positioned alongside residential developments, retail hubs, and community amenities, enhancing the overall appeal of these precincts and supporting sustainable growth.
Childcare centres offer strong fundamentals that appeal to investors:
Long-term leases, often 10 to 15 years, with fixed rent reviews
Government-backed funding for operators, reducing revenue risk
Essential service status, ensuring consistent demand regardless of economic cycles
These characteristics make childcare assets resilient, particularly in a market where other commercial sectors face uncertainty. Investors seeking diversification and stability are increasingly turning to childcare as a core component of their portfolios.
With more than a century of experience in Melbourne’s property market, GrayJohnson understands the dynamics of growth corridors and the factors that drive demand for childcare. Our team provides strategic advice on site selection, zoning compliance, and operator partnerships, ensuring projects meet both community needs and investor objectives.
We also help developers navigate planning reforms that encourage higher-density housing and integrated community services. By aligning childcare development with these policies, investors can maximise returns while contributing to liveable, well-serviced communities.
Melbourne’s population growth is creating unprecedented demand for childcare facilities, particularly in the north and west. For investors and developers, this is an opportunity to deliver essential infrastructure and secure stable, long-term income. If you’re ready to explore childcare development opportunities in Melbourne’s growth corridors, contact GrayJohnson today.
