Parents are saving on private school fees and buying homes near top public schools, says the REIV.
New data from the Real Estate Institute of Victoria shows that homes in the catchment areas of some of Melbourne’s best public secondary schools are attracting an almost $600,000 premium compared to homes outside the zones.
In 2016, the median house price of properties with more than two-bedrooms in the catchment areas of desirable public school is significantly higher than the median price of similar homes that border the zone.
The analysis was undertaken in the 12 months to 31 March, and shows that the largest price difference was achieved for homes in the zone for University High in inner-northern Parkville.
Homes within the school zone had a median house price of $1,395,000, while homes within a one kilometre radius of the school zone had a median of $799,000 – a difference of $596,000.
Homes zoned for McKinnon Secondary College also achieved sale prices significantly higher than those located outside the catchment area. The median house price for homes within the zone was $1,500,000 compared to a median of $1,195,000 for homes in the same suburb but outside the school zone.
Homes sold in the Cheltenham Secondary College school zone achieved $150,000 more than those outside the zone.
REIV CEO Geoff White said access to high-quality amenities and services – particularly schooling and education – is a key driver of price growth across Melbourne.
“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.
Property prices in school zones
Data source: REIV.
Investing in locations with strong fundamentals adds value to your Investment. Fundamentals includes Schools, Universities, Employment Nodes, public transport, hospitals and lifestyle amenities. This is why people pay more for property in these locations, or pay more rent in these locations than in locations without these fundamentals.