What a Brisbane Childcare or Early Learning Centre Is Worth

Whether it is a new 120-place centre in North Lakes or an older house conversion in Ashgrove, the starting point is what comparable Queensland centres have sold for, checked against the earnings the rooms can keep producing.

A Brisbane childcare centre is usually valued against recent sales of comparable centres, since the sector trades often enough to supply real evidence. We express those sales per licensed place and as an earnings multiple, adjust for the occupancy the centre holds through the year, its quality rating, its lease and any kindergarten program income, and cross-check the result by capitalising earnings after costing a paid centre director in place of a working owner.

Why Brisbane centre owners commission a valuation

A deal or a dispute is behind most of the instructions we receive. A national operator has made an unsolicited offer for a centre in Springfield Lakes. A couple who opened a centre in Logan together are separating, and the Brisbane registry of the Federal Circuit and Family Court needs the business valued at a set date. One of two co-owners in a Redlands centre wants to sell their half to the other. A lender asks for a figure before funding a second site in Moreton Bay. Or the accountant is moving several centres into a new structure and the ATO will expect market value.

Owners also come to us well ahead of a sale. The likely buyers are corporate groups and syndicates who have run the numbers on hundreds of centres, so a seller without an evidence-based figure starts at a disadvantage. An early valuation also points to what is suppressing the price while there is still time to fix it: places that sit empty in certain rooms, a lease running short, a rating stuck at Working Towards, or educator costs inflated by agency shifts.

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Managing Partner · 15+ years
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How the evidence is weighed

The Market Approach leads. Corporate operators, private owners and property investors buy Brisbane long day care centres regularly, so the sales record is a better guide to value than a forecast built from first principles.

The method is guideline transactions. Each sale is screened for its number of licensed places, occupancy, rating, remaining lease, catchment and whether the property sold with it, then expressed per licensed place and as a multiple of maintainable earnings.

Five close comparisons beat twenty rough ones. A purpose-built centre on a new fifteen-year lease in an Ipswich growth estate tells you little about a small centre in an old Queenslander in Paddington with two years left to run, even if both sold in the same quarter.

Earnings check

Maintainable earnings are capitalised after the owner's time in the rooms or the office is costed at the salary of a qualified centre director. Centres that look profitable only because the owner draws no wage are exposed by this step.

Asset check

Play equipment, outdoor areas, furniture and fit-out are valued at what they would realise today, and the building is added only if the owner holds it. A freehold is a separate property interest, priced by investors on rental yield and by operators on trading.

The adjustments that move a childcare figure

Normalisation is where valuations of the same centre usually diverge, which is why our reports list every adjustment beside its reason. For Brisbane childcare centres the common ones are:

The Brisbane childcare market

Where a centre sits in Greater Brisbane shapes how buyers read it. The outer growth areas, North Lakes and the rest of Moreton Bay, Springfield and Ripley in Ipswich, and the Logan corridor, are where large purpose-built centres open beside new housing estates, usually on long leases to investors, and where a new centre down the road can take enrolments before the estate fills. The established inner and middle suburbs, from Ashgrove and Paddington to Bulimba, Indooroopilly and Carindale, have smaller centres on tight sites with long waiting lists. The inner-city ring of Newstead, Fortitude Valley, Milton and Herston serves working parents near the CBD and the hospital precincts, at higher rents.

Queensland adds its own layer to the numbers. Centres are approved and assessed against the National Quality Standard by the Department of Education, the regulatory authority for early childhood services in Queensland. Many long day care centres here also deliver an approved kindergarten program, so part of their income comes through Queensland Government kindergarten funding rather than parent fees supported by the Commonwealth Child Care Subsidy. A buyer will want to know that the program is approved for the service, that the centre can staff it with a qualified early childhood teacher, and how the funding arrangements are likely to change. Council planning approval can also cap how many children a site may take, whatever the building could hold.

Licensed places are a maximum, not a trading result. A centre approved for 90 places that fills 64 is valued on the 64 it can hold, with credit for the gap only where catchment growth and nearby supply make it likely to fill. Demand behind the sector keeps growing: health care and social assistance, the ABS industry division that includes child care services, increased its business count by 6.7 per cent nationally in 2025 to 2026 (Source: ABS, Counts of Australian Businesses, July 2022 to June 2026, released 18 August 2026). For a seller that means more comparable sales to draw on; for a centre in a growth estate it can also mean a new competitor nearby.

6.7%
national rise in health care and social assistance businesses over 2025 to 2026; child care services sit in this ABS division
Source: ABS, Counts of Australian Businesses, July 2022 to June 2026, released 18 August 2026
2 regulators
shape a Queensland centre's income: the Commonwealth through the Child Care Subsidy, and the state through its Department of Education and kindergarten funding
Places held
not places licensed, are what a buyer pays for; the service approval only sets the upper limit

What the report contains, and why it holds

The report begins with the purpose of the valuation, the standard of value, the valuation date and the records we relied on, noting any gaps in them. It then sets out each approach considered and the method applied, every normalisation adjustment with the reason for it, and the reconciliation of the results into a range, with the weighting explained in plain English.

When a figure is tested, that reasoning is what survives. A second expert will look first for an unexplained choice: why sales were preferred to capitalised earnings, or why the centre sits at a particular point among those sales. That scrutiny comes in a property settlement in the Brisbane registry of the Federal Circuit and Family Court, or in a dispute between co-owners in the Supreme Court of Queensland, where expert reports are governed by the Uniform Civil Procedure Rules 1999 (Qld). Our reports follow APESB, APES 225 Valuation Services and are signed by a certified valuer prepared to defend them.

Ask this of anyone valuing your centre

Which of your assumptions would an opposing expert challenge first, and what is your answer? If the valuer can reply straight away, the work has been done properly.

Which report depth suits the purpose

An Indicative valuation is the right first step when a corporate operator has approached you and you want a figure of your own before responding. It is for internal decision-making and is not written for third party reliance. A Summary report suits a sale to an independent buyer, a co-owner buying in, or a bank financing an additional centre. A Detailed report is needed for a property settlement, a dispute between owners, or any matter where an opposing expert will examine the work.

Choose the depth by who will read the report. If a court, a bank, the ATO or another valuer could test the figure, the full reasoning needs to be on the page.

Indicative

For internal decision-making. Useful for testing an offer, setting an expectation before a negotiation, or deciding whether to go to market. It is not written for third party reliance.

Summary

Sets out the approaches applied, the normalisation adjustments made and the reasoning behind the conclusion. The usual choice for a sale, an ownership change or a finance application.

Detailed

Applies and reconciles all relevant approaches in full. The level required where a court, the ATO, a lender or another expert will review the opinion.

Compare the three report types

Childcare valuation questions from Brisbane owners

Mainly against what comparable Queensland centres have sold for. We shortlist sales of centres with a similar number of licensed places, occupancy, rating, lease and catchment, express them per place and as an earnings multiple, and then check the answer by capitalising earnings once a working owner has been replaced by a salaried centre director.
No single per-place figure holds across the city. A place in a full centre in Bulimba on a long lease is a different asset from a place in a half-empty centre in a new Logan estate. The figure depends on how many places are filled through the year, the daily fee families in that catchment pay, the quality rating, the remaining lease term and whether the property is included. The report lists the sales relied on and explains where the centre falls among them.
Noticeably, through two channels. Parents check the rating when they choose a centre, so it flows through to occupancy, and a buyer prices the cost of keeping or improving it. With a Working Towards rating, a buyer will usually allow for spending on improvements and a slower climb in enrolments, and will pay less until the Department of Education reassesses the service.
Only if the engagement includes it, and then as a separate valuation. Property investors buy childcare freeholds for the rental income and the strength of the tenant, while operators buy the business for its trading. When the owner, a family trust or an SMSF owns the building, the rent in the accounts is replaced with a market rent before the business is valued, so a related-party arrangement does not distort the result in either direction.
Certified reports are delivered from seven business days after we have the information. The timing usually depends on how fast the centre can provide three years of financial statements, occupancy by room and week, its service approval and quality rating, the lease, educator rosters and the paperwork for any kindergarten program.
Only where it converts into enrolments. In an established Brisbane suburb with few new centres, a list that has reliably filled vacancies supports the occupancy figure the multiple is applied to. A list inflated by families registered at several centres, or by names that never take up an offer, adds nothing, and a careful buyer will ask for the conversion history.
Many Brisbane long day care centres deliver an approved kindergarten program, so part of their income comes as Queensland Government kindergarten funding rather than parent fees and the Child Care Subsidy. We confirm the program is approved for the service, whether it depends on a single qualified teacher, and how expected changes to the funding arrangements could affect rooms, staffing and fees. That income is counted as maintainable only if the centre can keep meeting the program's conditions.
They can. In fast-growing parts of Moreton Bay, Ipswich and Logan, new purpose-built centres often open ahead of the families who will fill them, and a nearby opening can slow enrolments at an existing centre for a year or two. We look at approved and planned centres in the catchment, the centre's occupancy trend since the last opening nearby, and its fee position against the newer competition before settling on the occupancy to value.

Book a Free Consultation

Talk your situation through with a certified valuer before you commit to anything, at no cost.

Andrew Mackson
Andrew Mackson, CFA, ABV, CBV
Managing Partner · 15+ years
Book a Free Consultation →

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