- A child care development property in Sydney’s northwest has sold at auction for $5.061 million, setting a new record for the sale price per childcare place
- Healing the World Pty, a local child care operator, paid $101,220 per place for the 1,349sqm land at 25 Ray Road in Epping
- The rate was 35 per cent more than the previous record established at the end of 2019 for a site at 6-8 Waterloo Street in Rozelle
A child care development property in Sydney’s northwest has sold at auction for $5.061 million, setting a record for the sale price per childcare place in Australia.
Healing the World Pty, a local child care operator, paid $101,220 per place for the 1,349sqm land at 25 Ray Road in Epping. It is authorised for a 50-place child care centre.
The rate was 35 per cent more than the previous record established at the end of 2019 for a site at 6-8 Waterloo Street in Rozelle, which was sold by Knight Frank.
Demi Carigliano, Anthony Pirrottina and Grant Bulpett of Knight Frank managed the auction campaign for the Epping property on behalf of a local investor.
It drew 47 offers from six registered bidders and resulted in the property selling for $861,000 more than the reserve price.
The site is currently occupied by a four-bedroom single-storey private home with 36 metres of street frontage. This will be demolished to make way for the child care centre.
Mr Pirrottina stated that it was uncommon for DA-approved childcare development plots to enter the market, but when they did, they were in great demand.
“We are seeing growing confidence from investors in Sydney’s commercial property market as the state nears its re-opening, and quality investments like these are always hotly contested,” he said.
“Child care centres are a solid investment, with almost every child care asset that comes to the market setting a new record lately.
“These investments are attracting a high number of buyers and selling for strong rates due to the asset class being ‘COVID-proof’, with government rebates on childcare facilities.”
Mr Carigliano stated that purchasers were drawn to the site because of its current development approval, strategic location, and possibility for growth.
“While the site is currently approved for a 50-place child care centre, there is further potential for 60 places, subject to council approval, with the R4 zoning also permitting a range of uses including apartments.”