Goodstart Oxenford Studio Village daycare on Gold Coast forced to close

Dozens of families will be on the hunt for new childcare options as a busy Goodstart daycare centre prepares to close its doors.

A local daycare centre has been forced to shut down after being hit by yet another unmanageable rent increase in the area.

After more than 15 years in business, Goodstart Oxenford Studio Village will close its doors when its lease ends in early July.

Kelly Jones with her kids Aya, 4 and Aura, 3 outside the daycare centre, which will close after more than 15 years in business due to a rent hike. Picture: Richard Gosling

Not-for-profit and Australian-owned, surplus revenue goes back into the care of children in the Goodstart network. Kelly Jones, whose two daughters attend the centre, is devastated by the closure, which she says “happened quite suddenly”.

“It’s just so sad,” Ms Jones said.

“Talking to other people at the centre, you hear stories about people who’ve sent generations of family there.”

Children of the 65 families impacted by the closure will be relocated to other daycares in the area, splitting the tight-knit community.

“Many are relocating to nearby Goodstart centres and we are currently working through early learning and care options with the remainder,” a Goodstart spokesperson said.

“Goodstart is part of the close-knit local community and while we are sad to see the centre close, our team is committed to ensuring all families are supported through this transition with minimal disruption to children’s early learning journeys.

“Goodstart was left with no option but to close the centre after unsuccessful negotiations with the landlord which resulted in our request for a lease renewal being denied,” they added.

Online data shows 12 remaining daycare centres in the area, two of which are already full. Other centres, such as Goodstart’s Gaven centre where Ms Jones’ daughters will relocate, are expected to reach capacity as they shoulder the extra demand.

The closure also impacts a number of staff, some of whom have been with the centre since it opened more than a decade ago.

It’s not just the kindergarten that has been forced to close, with a bicycle store in Tugun also forced to shut due to rental costs.

The daycare is the latest in a string of local businesses forced to close up shop due to unmanageable rent increases.

Jared Johnson, agent at Harcourts Coastal, says the issue may lie in record low vacancy rates in the area, which allow commercial landlords to hike up rents for existing tenants.

“There’s a shortage of commercial property for lease across all sectors, especially in the central Gold Coast,” Mr Johnson said.

“I’ve never seen stocks so tight in my career.”

Unlike in the capital cities, the vacancy rate on the Gold Coast fell dramatically during the pandemic, dropping by 4.2 per cent in the year to February 2022. It was its lowest level since before the Global Financial Crisis.

In the commercial market, it means businesses have to compete for limited floor space, primarily by agreeing to pay more.

“It’s a supply-and-demand thing,” Mr Johnson added.

“Landlords do have the opportunity to raise rents right now because there’s so little stock.

“I expect that will come down a little in the next 12 to 18 months or so, with all the interest rate rises.”