Being located in a school catchment area can make a massive difference to a property’s value.
Clearly some people are prepared to pay a significant premium according to new REIV data which shows that homes located within the catchment area for some of Melbourne’s best public primary and secondary schools are fetching over $400,000 compared to those outside the zone.
Now there’s nothing new about this.
And it’s much the same in Sydney and Brisbane where education influences home buyers across a broad range of demographics who consider school catchment zones when determining suburbs of interest.
And it’s much the same for property investors who are looking to attract long term, quality tenants.
REIV President Robyn Waters said houses within some school catchment areas are hot property because access to sought-after public schools is one of the major factors that buyers with school-aged children consider when hunting for a new home.
“The median house price for a residence within the designated neighbourhood boundary for the newly opened Beaumaris Secondary College is $1.62 million while the median for a house within a one kilometre radius of the zone has a median of $1.21 million — $412,500 less,” Ms Waters said.
“Meanwhile homes bordering the school zone for South Yarra Primary School have a median of $1.37m which is $335,000 less than the $1.7 million median for a house within the school zone.“From the REIV’s latest data, it appears that addresses within coveted designated neighbourhood boundaries for public primary schools have become more desirable than high school zones. Location within a well-regarded public primary school zone is important for increasing numbers of parents who plan to send their children to a public primary school followed by a private secondary college.”
Ms Waters said homes within the catchment areas of popular schools are tightly held.
“Parents are weighing up the cost savings of sending their children to a good public school rather than spending thousands on fees at a private school,” Ms Waters said.
“Most of these schools require proof of residency such as a Council rates notice, utility bills and/or driver’s licence, a statutory declaration of residence, or a minimum leasing arrangement of 12-months from a Licensed Real Estate Agent and many only offer school tours for families who live within the designated zone.
“Median price differentials of more than $100,000 from within and outside school zones have been found around schools in Beaumaris, Glen Waverley, Kew, McKinnon, Mount Waverley, Camberwell, South Yarra, Malvern East, Malvern, Hampton, Preston, Fitzroy, Hawthorn East, Altona and East Bentleigh.”
Here's the data
Secondary schools – 2+bedroom houses
12 months to 31 December 2018
| In school zone | Bordering school zone 1km | ||||
| School | Dec-18 Median | Number of sales | Dec-18 Median | Number of Sales | Difference |
| BEAUMARIS SECONDARY COLLEGE | $1,622,500 | 222 | $1,210,000 | 143 | $412,500 |
| GLEN WAVERLEY SECONDARY COLLEGE | $1,621,000 | 116 | $1,300,000 | 241 | $321,000 |
| KEW HIGH SCHOOL | $2,001,000 | 344 | $1,715,000 | 344 | $286,000 |
| MCKINNON SECONDARY COLLEGE | $1,548,000 | 121 | $1,390,500 | 320 | $157,500 |
| MOUNT WAVERLEY HIGH SCHOOL | $1,310,000 | 361 | $1,173,000 | 286 | $137,000 |
| CAMBERWELL HIGH SCHOOL | $2,100,000 | 387 | $1,980,000 | 491 | $120,000 |
| BOX HILL HIGH SCHOOL | $1,285,750 | 214 | $1,200,000 | 332 | $85,750 |
| FRANKSTON HIGH SCHOOL | $770,550 | 290 | $690,000 | 214 | $80,550 |
| UNIVERSITY HIGH SCHOOL | $1,395,000 | 135 | $1,327,500 | 190 | $67,500 |
| BALWYN HIGH SCHOOL | $1,900,000 | 290 | $1,980,000 | 247 | -$80,000 |
Primary schools – 2+ bedroom houses
12 months to 31 December 2018
| In school zone | Bordering school zone 1km | ||||
| School | Dec-18 Median | Number of sales | Dec-18 Median | Number of Sales | Difference |
| SOUTH YARRA PRIMARY SCHOOL | $1,700,000 | 87 | $1,365,000 | 188 | $335,000 |
| LLOYD STREET PRIMARY SCHOOL | $1,980,000 | 113 | $1,757,500 | 196 | $222,500 |
| HAMPTON PRIMARY SCHOOL | $2,050,000 | 77 | $1,855,000 | 231 | $195,000 |
| MALVERN CENTRAL SCHOOL | $2,400,000 | 113 | $2,230,000 | 251 | $170,000 |
| MOUNT WAVERLEY PRIMARY SCHOOL | $1,407,950 | 72 | $1,266,000 | 171 | $141,950 |
| PRESTON WEST PRIMARY SCHOOL | $1,060,000 | 45 | $920,000 | 227 | $140,000 |
| FITZROY PRIMARY SCHOOL | $1,435,000 | 66 | $1,305,000 | 211 | $130,000 |
| AUBURN SOUTH PRIMARY SCHOOL | $2,230,000 | 59 | $2,100,000 | 201 | $130,000 |
| ALTONA PRIMARY SCHOOL | $952,500 | 38 | $830,000 | 75 | $122,500 |
| VALKSTONE PRIMARY SCHOOL | $1,468,000 | 59 | $1,355,000 | 251 | $113,000 |
NOW READ:
- How top school zones affect Melbourne property prices
- How top school zones affect Sydney property prices
- How top school zones affect Brisbane property prices
