〈Real Estate〉Kindergarten Closures Due to Declining Birthrate: Where Are They Going? Three Key Advantages Make Them Hot Targets for Developers

Declining birthrates are causing a reduction in the number of kindergartens across Taiwan. According to data from the Ministry of Education's Statistics Office, during the 114th academic year, there were 6,616 kindergartens in total—including both public and private institutions—down by 41 from the previous year. While public kindergartens increased by 17, private kindergartens declined by 58, continuing a decade-long downward trend.

Private kindergartens numbered 4,258 in the 105th academic year but have now dropped to 3,882 in the 114th academic year—a loss of 376 kindergartens over ten years, reaching a 10-year low. Among Taiwan’s six major cities, five saw overall kindergarten numbers decline, with Taipei City recording the largest drop at 12. Only Taoyuan City saw an increase, adding 8 kindergartens.

Chang Hsu-Yen, Executive Director of the Trend Center at Taiwan House Group, noted that while the government continues to expand public early childhood education services, private kindergartens face mounting challenges. These include declining enrollment due to low birthrates, staff burnout and turnover, and intense market competition—leading many to cease operations. The sharp decline in Taipei’s kindergarten count reflects the high operating costs in urban areas, where high living expenses coincide with visible trends of declining birthrates and shrinking family populations.

Chang explained that Taoyuan benefits from generous childbirth subsidies and more affordable housing compared to Taipei and New Taipei, making it a popular destination for first-time homebuyers and young families. Ongoing development in emerging districts like Qingpu, Taoyuan, and Guishan has driven growth in family populations and housing demand, increasing the need for early childhood education facilities. With an average of 103 children per kindergarten in Taoyuan, demand could soon outstrip supply, potentially leading to overcrowding.

As kindergartens close, their land and buildings are becoming prime targets for real estate developers. In recent years, several high-value transactions have occurred. For example, Xin Long Teng Development acquired the ‘Yuanshan Kindergarten’ in Kaohsiung—including surrounding parking lots—totaling 832.97 ping of residential land, for NT$701 million. The Cheng Yi Group purchased the 312.18 ping site of ‘Jia Bao Kindergarten’ in Chiayi for NT$155 million. In Taichung, a local developer bought the 587.23 ping site of ‘Dandelion Kindergarten’ for NT$399 million.

Li Chia-Ni, Manager at Taiwan House Group’s Trend Center, stated that developers primarily seek the land, not the buildings. Kindergartens are typically located in mature, densely populated neighborhoods, offering large plots, clear ownership, and easy consolidation. In central and southern Taiwan, many kindergartens resemble castles, occupying large, well-defined plots. If the land fronts a major road and the buildings qualify for urban renewal incentives for aging structures, their redevelopment value and efficiency increase significantly—making them ideal targets for developers.