Childcare Investment Trends 2024-2025
Australia’s early childhood education and care (ECEC) sector is experiencing a resurgence in investment, driven by increasing demand and favourable market conditions. For those considering entering the early learning business, the current landscape presents numerous opportunities.
Recent data indicates a significant uptick in childcare property transactions. In 2024, the sector saw over $1 billion in transactions, marking a 44.4% increase from the previous year. This momentum has continued into 2025, with $242.1 million in individual property transactions recorded by May. This growth reflects a renewed confidence in the sector, with investors recognising the long-term value of early learning centres in Sydney, Melbourne, and Brisbane.
Population Growth Driving ECEC Demand
Australia’s population continues to grow, with projections estimating a population of approximately 27.7 million by 2025. This growth is particularly pronounced in regions like South East Queensland, which is expected to be home to 4.4 million people by 2031. Such demographic trends underscore the increasing need for accessible and quality early childhood education services, particularly in Brisbane ECEC services and outer suburban areas.
Quality Standards in Australian Childcare
The sector’s commitment to quality is evident in the latest data from the Australian Children’s Education & Care Quality Authority (ACECQA). As of the first quarter of 2025, a significant proportion of services have been rated as Meeting or Exceeding the National Quality Standard, reflecting the sector’s dedication to providing high-quality education and care across Sydney childcare centres and Melbourne early learning facilities.
Government Funding and Support Programs
The 2025-26 Federal Budget underscores the government’s dedication to early childhood education, allocating $5 billion to establish a universal ECEC system. Key initiatives include:
- Worker Retention Payment: $3.6 billion to increase wages for early childhood educators, aiming to boost retention and attract new professionals to the sector.
- Building Early Education Fund: $1 billion dedicated to expanding and establishing 160 early childhood education and care services, particularly in underserved areas such as outer suburbs and regional Australia.
- 3 Day Guarantee: $426.6 million to ensure all families are eligible for at least three days per week of subsidised early childhood education and care, replacing the previous activity test requirement.
These measures are designed to enhance accessibility, affordability, and quality within the ECEC sector, ensuring that every child has the opportunity to benefit from early education.
Investment Outlook for Early Learning Centres
The convergence of increased investment, population growth, and substantial government support positions Australia’s early learning sector as a promising avenue for business ventures. For those looking to establish or expand in this field, the current environment offers a conducive setting for sustainable growth and positive community impact.
References
- Commo: Childcare investment rebounds along greater investor sophistication: https://www.commo.com.au/news/2025/05/21/childcare-investment-rebounds-along-greater-investor-sophistication-rwc/1747782857
- ACECQA: NQF Snapshot Q1 2025: https://www.acecqa.gov.au/sites/default/files/2025-05/NQF%20Snapshot%20Q1%202025%20FINAL.PDF
- Budget 2025-26: Education: https://budget.gov.au/content/04-education.htm
- Early Childhood Australia: Federal Budget Summary 2025-26: https://www.earlychildhoodaustralia.org.au/wp-content/uploads/2025/03/Federal_Budget-Summary_ECA_2025-2026-v1.pdf
- Daily Telegraph: Families to save thousands of dollars on childcare fees under new plan: https://www.dailytelegraph.com.au/lifestyle/parenting/families-to-save-thousands-of-dollars-on-childcare-fees-under-new-plan/news-story/c6e3bd38bdba0e802b69cd7eaa9b746f
