How Much Does It Cost to Build a Childcare Centre in Sydney?

Why the Cost Range Is Wide

Childcare centre construction costs vary significantly depending on four factors: the number of approved places (which drives sqm requirements under ACECQA), the specification level of the fit-out, the site conditions, and whether you’re doing a new build, a conversion of an existing building, or a tenancy fitout within a mixed-use development.

A ground-floor tenancy fitout in an existing commercial building will cost less than a purpose-built standalone centre. But the standalone build gives you more control over ACECQA compliance from the start — you’re not retrofitting a building that wasn’t designed for childcare.

Cost Breakdown by Centre Size

Centre Size	Approved Places	Construction Range
~300sqm	30–40 places	$750K – $1.35M
~500sqm	60 places	$1.25M – $2.25M
~700sqm	80–90 places	$1.75M – $3.15M
~900sqm	120 places	$2.25M – $4.05M

Note: These figures cover construction only. Add 15–25% to your total project budget for professional fees (architect, hydraulic, structural, building certifier), DA costs, playground equipment, and ACECQA-required loose furniture and educational resources.

What ACECQA Requires — and What It Costs You

The National Quality Framework sets mandatory minimum space requirements per child in NSW: 3.25sqm of usable indoor space and 7sqm of outdoor space per child. These minimums set the floor for your centre’s size. A 60-place approval means a minimum of 195sqm of indoor space plus 420sqm of outdoor space — before any bathrooms, kitchen, laundry, sleep rooms, storage, or staff areas.

ACECQA requirements that directly add to construction cost:

• Defined sleep rooms with appropriate floor area, ventilation, and lighting controls
• Separate bathrooms scaled to the number of approved children
• Commercial kitchen or approved food preparation area
• Natural light and ventilation to all indoor play areas
• Outdoor shade structures covering the required 7sqm per child
• Storage compliant with the NQF’s equipment and educational resource requirements
• Accessible design under AS 1428.1 for children and adults with disability

A builder who hasn’t done childcare work before will either underquote these requirements or discover them during construction and issue variations. Neither outcome is good when you’re trying to hit your DA conditions and your ACECQA approval date.

What Else Goes in the Budget

Construction cost is one line in a larger project budget. For a 60-place centre, expect to add:

• Architect and design fees: $60,000–$140,000 depending on scope
• DA fees and contributions: varies by council, often $20,000–$80,000
• Playground equipment and surfacing: $40,000–$100,000
• Loose furniture and educational resources: $30,000–$60,000 for a 60-place centre
• Hydraulic, structural, and acoustic engineering: $20,000–$45,000
• Building certification and inspections: $10,000–$25,000

Design and Construct vs. Separate Architect and Builder

Design and construct (D&C) contracts give you one point of accountability — one entity responsible from design through to practical completion. This typically reduces the variation risk from design-to-construction handoffs. Separate architect/builder arrangements give you more design control but require more active management of the interface between the two parties.

For childcare operators who are building their first centre, D&C or a builder with documented childcare experience is lower risk. The compliance requirements are specific enough that a builder who knows them from prior projects is worth more than a cheaper rate from someone who doesn’t.

State Property Development is an ACECQA-aware commercial builder operating across Greater Sydney. We take on childcare centre construction from design and construct through to tenancy fitouts within existing buildings. Learn more about our childcare construction service or call Jay directly on 0451 151 336 for a project discussion.