Enrolment Decline Forces Closure of Historic Sydney Childcare Centre in Millers Point
SYDNEY—The KU Lance childcare centre in Millers Point, a historic site with over 120 years of service, is set to close by the end of this year due to declining enrolments. This decision has left local families concerned about the future of childcare in the area.
Historic Childcare Site Faces Closure
The Millers Point centre, which has the capacity for 39 children, has experienced a significant drop in enrolments—down by 30 percent in the past year alone. Some days, only six children attended, highlighting a concerning trend.
Changing Demographics
The closure reflects broader demographic changes in Sydney. According to NSW Productivity Commissioner Peter Achterstraat, the city risks becoming “known as the city with no grandchildren.” He pointed out that many young families are leaving Sydney due to high housing costs.
- Many families unable to purchase homes in the city are moving to outer suburbs.
- Long commutes are becoming a norm for those who can only afford housing further away.
Legacy of the Millers Point Centre
The Millers Point site has a rich history. Initially opened as a public playground in 1901, it transitioned into a childcare facility in 1912. It was once a vibrant hub for working-class families.
Since the sale of public housing in 2018, the neighbourhood has undergone dramatic changes. Many homes are now short-term rentals, with recent census data revealing that one in three homes in the area remains unoccupied. Local residents report that more than half of the properties are listed on platforms like Airbnb.
Impact on Local Institutions
The declining enrolments have affected several local institutions, including Fort Street Public School, which enrolled only 292 students this year, far below its 550-student capacity. Remote work arrangements have also contributed to diminished demand for inner-city childcare services.
Paul Mondo, president of the Australian Childcare Alliance, noted the difficulties families face when services they rely on become unviable. “This can be difficult for families who are displaced from services where they have established strong relationships with educators,” he explained.
Oversupply of Childcare Centres
Christine Legg, chief executive of KU, commented that the area is oversupplied with childcare centres. Local statistics indicate there are seven centres within a kilometer, three of which are significantly underutilized.
The City of Sydney is currently reviewing the future of the site, marking what could be the end of a significant community hub that has served families for generations.
