From Morningstar this morningCushman & Wakefield's Queensland...

From Morningstar this morning


Cushman & Wakefield's Queensland research manager Jake McKinnon says there is growing demand with high-net-worth individuals, institutions and foreign investors identifying the portfolio diversification potential of investing in childcare centres. "Investors see favourable fundamentals and can benefit from new subsidies and $4.7 billion in government funding to boost access as demand rises," he says."Further funding increases, population growth and increased female labour force participation are expected to continue to drive growth across the sector throughout the coming years."His research shows strong demand for childcare services and competition for quality locations has led to rents rising 47% on average nationally over the last decade. Rader notes there has been an uptick in development assets coming to market this year as higher financing costs and elevated building rates put pressure on some developers and vendors, but adds there is ongoing demand to occupy the new centres.