The alternate property sectors such as healthcare, data centres, student accommodation and self-storage have attracted considerable attention from institutional investors. Specifically, recent years have seen increased interest in investing in childcare centres as an alternate property sector. Major property players in Australia such as Arena and Folkestone have been active in the childcare centres property sector via A-REITs. This paper reviews the stature of the childcare centres property sector in Australia, as well as assessing the risk-adjusted performance and diversification benefits of childcare centres against the other main property sectors and asset classes. The strategic property investment implications are also highlighted.