Childcare approved on 974sqm.What next in 2026 ?

The childcare facility for 76 places was set in a sloping site which backed on to a public reserve all three sides.

Childcare Development in Victoria: Choosing the Right Site

The 2026–27 Federal Budget and ongoing investment in early learning are expected to keep demand for childcare strong across Victoria. For operators and developers, the key question is no longer just where to open a centre, but whether the site can support long-term value, approvals and future growth.

Why childcare property matters

Many operators have traditionally leased premises and focused on the business side of childcare. But with continued demand, ownership can create stronger long-term outcomes through capital growth, better site control and more strategic development decisions.

A well-selected site can support both day-to-day operations and long-term wealth creation.

What makes a good site

Not every parcel of land is suitable for a childcare centre. In Victoria, the best sites usually combine strong local demand with practical approval potential.

Look for:

• A growing family catchment.

• Limited nearby childcare competition.

• Good access for parents and staff.

• Safe drop-off and pick-up arrangements.

• Enough land for indoor space, outdoor play, parking and setbacks.

• A planning path that is realistic under the local scheme.

A site may look attractive on price alone, but if it cannot accommodate parking, outdoor space or access requirements, it may become expensive or unworkable.

Planning and compliance

Before buying or leasing a site, check whether childcare is supported by the zone and whether any overlays may affect approval. In Victoria, childcare projects typically need both planning approval and premises approval before they can operate.

Parking, access and outdoor play space are often the issues that determine whether a proposal is viable. The site must work on paper, in planning terms and in practice.

A simple site checklist

Use this quick test before progressing a site:

• Is there proven demand in the catchment?

• Does the zoning support childcare?

• Are there any difficult overlays?

• Can you provide safe access and parking?

• Is there enough space for indoor and outdoor use?

• Does the site have long-term development value?

If the answer to several of these questions is no, the site may not be the right fit.

Final thought

The strongest childcare developments in Victoria are usually not the cheapest sites. They are the ones with the best mix of demand, compliance and long-term value.

If you are assessing a childcare site, the smartest move is to test its highest and best use before committing capital. That early analysis can save time, reduce risk and improve feasibility.

Thinking of a childcare centre? Contact Swarup.