Childcare centre valuations for Melbourne operators, built on places and occupancy.
For selling or buying a centre, partner exits, family transfers and restructures, from established inner suburbs to new centres in Melbourne's growth areas.
A Melbourne childcare centre is valued on the profit it earns from its approved places at the occupancy it can keep, after paying market rent. The number of places sets the ceiling; occupancy, the room mix, fees, the quality rating and the lease decide how close the centre gets to it. Our valuers check the per-place figure that buyers talk about against capitalised earnings, so the conclusion holds up on both measures.
Places and occupancy drive the value
Two centres with the same number of approved places can be worth very different amounts. One that is full most days with a waitlist earns far more than one running well below capacity, even though both hold the same approval. The valuation looks at occupancy by room and by day, because a nursery room carries different staffing costs from a kindergarten room, and at daily fees against nearby centres. A new centre in Melbourne's west or north that is still filling up is valued on a realistic path to mature occupancy, with that path stated in the report, rather than on last year's figures or a developer's forecast.
The regulator and the service approval
Since 1 January 2026, early childhood services in Victoria have been overseen by the Victorian Early Childhood Regulatory Authority (VECRA), an independent statutory authority that took over the regulatory role from the Department of Education. A centre needs a service approval to operate, and that approval sits with an approved provider under the Education and Care Services National Law. It does not pass to a buyer just because a sale contract is signed: the transfer goes through the regulatory authority, and the buyer must be an approved provider. The valuation treats the approval transfer as a condition of the sale. The timing and steps are for the parties, their lawyers and VECRA to confirm.
Quality rating, staffing and the lease
Every approved service has a public rating against the National Quality Standard, and families check it. A strong rating supports occupancy and fees; a weaker rating or recent compliance action means the buyer inherits work to fix. Staffing matters as much: educator ratios and qualifications set the cost base, and a centre relying on agency staff to stay in ratio has thinner margins. The lease is the other big test. Many Melbourne centres sit under long leases with fixed yearly rent increases, and rent that rises faster than fees takes value out of the business each year.
When Melbourne centres are valued
- ·Sale or purchase of a centre, including testing a sale price
- ·A partner, shareholder or unitholder leaving
- ·Moving the operating business or the freehold between family entities
- ·Separating the property from the business before a sale
- ·Bank finance or refinancing
- ·Market value evidence for small business CGT concessions on exit (your accountant applies them)
Common questions.
Is a childcare centre valued per place?+
Buyers and agents often talk in dollars per approved place, and the valuation reports that figure. But a per-place number hides occupancy, fees and rent, so the conclusion is based on earnings and the per-place figure is used as a cross-check. Where the two disagree, the report explains why.
Does the quality rating affect value?+
Yes. The rating is public and families use it, so it supports or weighs on occupancy and fees. A good rating does not fix weak earnings, but a weak rating usually discounts good ones because the buyer takes on the work to improve it.
Is a leasehold centre worth less than a freehold one?+
They are different things. A leasehold sale is the business only. A freehold sale includes the property, and much of the price is real estate. The valuation separates the two. Property is valued by a property valuer in Victoria; we value the business.
What does it cost?+
The fee is fixed before work starts and set by annual turnover: $1,495 + GST under $2 million, $2,495 + GST for $2 million to $3 million, $3,495 + GST for $3 million to $10 million, and a written quote above $10 million. Small reports take 2 business days and medium and large reports 3 business days, counted from when payment and all the information we need are in.
- ·A new regulatory authority for early childhood education, vic.gov.au
- ·Early childhood service approval, Victorian Early Childhood Regulatory Authority
- ·Education and Care Services National Law Act 2010, legislation.vic.gov.au
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Last reviewed 10 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne.