The low interest-rate environment has seen investors heading swiftly towards the higher-yielding bricks-and-mortar sector, with demand rising for an array of property types.
These range from petrol stations and convenience stores to bank chambers and childcare centres.
Most investors want to own the land and install an operator, which generates rental income as well as capital growth.
US convenience store chain 7-Eleven has already raised more than $200 million in the past year selling stores and service stations across Australia.
According to sales agents from Jones Lang LaSalle, these sales have been on yields of about 6 per cent to 7 per cent, with the buyers including private investors and self-managed super funds. The same types of investors are now lining up for childcare centres.
Dean Venturato, director of Burgess Rawson, said the level of interest in childcare centres had resulted in sales returns to rival those of bank-leased investments.
Mr Venturato, who has been involved in marketing several centres in recent times, said they were favoured by investors who saw comfort and security in the business of child minding.
''It is not a function that can be undertaken by a computer, online or off shore, which is a phenomenon affecting many Australian businesses at the moment,'' he said.
Recent sales have included childcare centres in Morisset, Macquarie Fields, West Hoxton, Hornsby, Warriewood and Coffs Harbour. Those with leases of a reasonable length and to good operators generally sell at prices between $1.5 million to $3 million and at yields of between 7 per cent and 8 per cent, but they have been as low as 6.3 per cent.
''The fear factor surrounding the collapse of Eddy Groves' ABC childcare empire seems to have dissipated, with buyers recognising that the industry is now more sound and a necessary service for many families,'' Mr Venturato said.
With increasing financial pressure on families and often both parents working, the demand for childcare services is increasing, he said.
Government subsidies for childcare services are also a positive factor underpinning the performance of centres.
''The buyers will be attracted to childcare centres as awareness increases, and especially among SMSF buyers, who have accounted for more than half of the acquisitions of late,'' he said.
''Bank-leased investments have traditionally been hotly contested but now childcare centres are rivalling the bank investments. It is not uncommon for us to receive more than 100 inquiries and issue more than 20 sale contracts to interested buyers during an auction campaign.''
The latest sale was a centre at 167-169 Stephen Street in Blacktown, which sold at auction last week for a little more than $2.76 million at a yield of 6.8 per cent.
Mr Venturato said the campaign generated more than 100 inquiries, with 37 sale contracts issued.
''With more vendors recognising the trend, more centres are also scheduled for future auctions,'' he said.
Another site at 45 Riddell Street in West Hoxton was sold in May for $1.63 million, showing a 6.3 per cent net return, he said.
