Australia’s economy is undergoing structural change. Sticky inflation, rising living costs, and shifting employment patterns have dominated headlines; but beneath these challenges lies an opportunity to unlock productivity and growth. One of the most powerful levers? Affordable, accessible childcare. For property investors and developers, this isn’t just a social service, it’s a strategic asset that underpins workforce participation and economic resilience.
Workforce participation is a cornerstone of economic growth, and childcare plays a critical role in enabling parents particularly women to enter and remain in the workforce. Today, female participation sits at around 63%, but economists agree that improving childcare access could push this figure higher, boosting GDP and easing labour shortages across industries.
The Federal Government has recognised this link. In its 2025–26 Budget, Canberra committed over $5 billion to early childhood education reforms, including the “Three-Day Guarantee” for universal access, retention payments for educators, and funding for new centres in high-demand areas. These measures aim to reduce cost barriers for families and ensure supply keeps pace with demand.
As childcare becomes a national priority, the property market is responding. Demand for childcare centres is strongest in growth corridors areas where population expansion and housing development are accelerating. Melbourne’s north and west, for example, are experiencing rapid demographic shifts, creating a pressing need for early learning facilities alongside residential projects.
GrayJohnson’s 2025 Economic and Property Market Update highlights these trends. Affordable industrial land in these regions averaging $850–$1,000 per sqm for sites between 1ha and 5ha presents an opportunity for developers to repurpose or integrate childcare facilities into mixed-use developments. This approach not only meets community needs but also enhances the value and appeal of residential projects.
Childcare centres offer compelling fundamentals:
Long-term leases (often 10–15 years) with fixed annual rental reviews
Government-backed revenue streams, reducing risk for landlords
Essential service status, ensuring consistent demand regardless of economic cycles
These attributes make childcare assets highly resilient particularly in a market where office and retail sectors face elevated vacancy rates and subdued rental growth.
With over a century of experience in Melbourne’s property market, GrayJohnson is uniquely positioned to guide investors and developers through this evolving landscape. Our team provides strategic advice on site selection, zoning compliance, and operator partnerships, ensuring childcare projects deliver both financial returns and community impact.
Childcare isn’t just about caring for children it’s about powering Australia’s economy. For investors and developers, this sector represents a rare intersection of social good and commercial opportunity. If you’re ready to explore how childcare assets can strengthen your portfolio and align with national productivity goals, contact GrayJohnson today.
