School Zones Boost Prices

Market Insights
7 years ago
1 minutes

Homes located within the catchment area of some of Melbourne’s best public secondary schools are fetching a $600,000 premium compared to those outside the zone, according to new data from the Real Estate Institute of Victoria.

The findings looked at the median house price of properties with more then two bedrooms in highly sought-after public school zones, compared to similar homes bordering the catchment area.

The most drastic price difference was recorded for houses in the University High School zone, located in inner northern Parkville.

Homes within the school zone had a median price of $1,395,000 compared to homes within a one-kilometre radius, which had a median of $799,000; a difference of $596,000.

The REIV’s CEO Geoff White said access to high-quality amenities and services, in particular schooling and education, is a key driver of price growth.

“Rather than paying private school fees, parents of school-aged children are increasingly investing that money in the family home and buying into areas zoned for top performing public schools,” he said.

“These areas also experience a high number of sales indicating the level of buyer demand within these zones.”

The McKinnon Secondary College zone also achieved significantly higher sale prices than homes situated outside the catchment area, with the median house price $1,500,000 compared to $1,195,000 in the same suburb.

While a difference of $150,000 was recorded for homes located in the school zone for Cheltenham Secondary College.