The Valuers' View - Child Care

July, 2020

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A survey of m3property Valuers

The Valuer’s View

In times of uncertainty where transactions are limited and new trends establishing, industry participants place even more reliance on Valuers to provide market guidance.

To assist lenders, investors and owners, the Valuers at m3property have contributed their opinions on the current state of the property markets and where they expect those markets to head over the next 12 months.

This is the seventh report in a series of papers on the major sectors of the Australian property market and focuses on Child Care Centre property.

Key Child Care Sector Insights

  • The Early Childhood Education and Care Relief Package assisted in creating some cash flow for child care centres and the transition arrangement will follow from July 12 to September 27, in place of JobKeeper.
  • Uncertainty continues in the sector and this is expected to have variable impacts on property value.

Value Comparison by Sector


Ross Perkins


View Profile > QLD
Michael Schwarz

Divisional Director

View Profile > SA
Casey Robinson

National Research Specialist

View Profile > QLD

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Stages of the COVID-19 recession

The COVID-19 crisis is likely to have three distinct stages:


Survey Results


“Recent market activity suggests investor interest remains relatively strong due to continuing Federal Government support.”

Michael Schwarz
Divisional Director


  • There has been limited evidence to quantify the impact of COIVD-19 on Child Care Centre yields to date. However, although COVID-19 has impacted the industry, recent market activity suggests investor interest remains relatively strong due to the continuing Federal Government support.


  • There is no consistent evidence of where rents are or where they are headed at current.
  • It is expected that rents in secondary property are likely to decrease further than prime stock.


  • The Child Care industry has gone through an upheaval since the start of COVID-19 and was on the verge of collapse.
  • New government funding announcements have improved the outlook for the sector.