Why School Zones Increase Property Values

So why are property values booming around Melbourne school zones? Families are the single biggest group of buyers in Melbourne.

Whether it’s young families leveling up their home, older families tweaking their living space to better fit their lifestyle, or couples gearing up for family life, plenty of folks are making their way into Melbourne suburbs.

Definition of a School Zone: A school catchment area or a school zone is the geographical location where a government school’s core intake of students must live.

Catchment areas ensure every student from Prep to Year 12 is able to enrol at their local government school.

Your local government school (primary or secondary) is the school which is closest to your home. You can review schools zone boundaries via this state government online tool.

How School Zones Impact Property Prices

A property located in a great school catchment area can add 10%-15% to its price.

In fact, homes inside the best school catchment zones in the city sometimes go for as much as $600,000 more than those just outside.

This trend holds true throughout Melbourne, and could make things difficult for young parents. On the other hand, it may be something for pragmatic Melbourne property investors to consider.

High-performing school Zones create strong competition for real estate as all parents want a great education for their child but don’t always have the means to send them to a private school.

High-performing government school zones are as valuable as garages, pools and bedrooms.

Tips on buying in a school zone

Many schools state that your home must have been your principal place of residence for a year or more to be eligible, while other schools simply state that you must be a rate payer within the council boundaries. So make sure you’re clear on the rules before you start to plan.

When looking at securing a home in a school catchment area, avoid the outskirts of the zone. The reason for this is that as the population increases, the boundary line for the catchment areas can change. You happen to be too close to the boundary, a few years down the track, you may not be in the zone anymore, which could cause your property’s value to drop.

When you’ve picked a school and it’s time to secure a property make sure you get the best local advice possible. With the right help and a little luck, purchasing property in a desirable school zone could reap great rewards for both you and your little ones.

The inner and middle suburbs of the east have some of the top public schools in the Melbourne.

New research shows Glen Huntly Primary School was the school catchment area with the fastest house price growth in the entire country, with 41.3% price growth in the past 12 months, according to Domain data.

The average house price within the catchment area of Glen Huntly Primary School is now bought up to $1.2 million.

Further down the list, in third place, Hawthorn’s Glenferrie Primary School showed 35% growth and a average house price of $1.5 million, and Kerrimuir Primary School, in Box Hill North also had a significant rise in house price with the average being $1,183,000.

Being in high performing school zone can be a great investment over the long-term. Both for your child’s education and their inheritance.

Owning a property located near a good school that ticks all the boxes will become an even more valuable commodity in the future, as the nation is only becoming more and more populated.

If you’re thinking about buying a place in a school zone, here’s what your property buyer’s homework should look like

– Understand property values in the desired school catchment zone.      

– Know the catchment zone boundaries, this can be obtained directly from the school. 

– Work out how much a good private school would cost VS the increase in property price and interest repayments for the life of the loan.

How about property investors?

At Wise Real Estate Advice, our Buyer Agents are experts in snagging investment properties for our clients. Checking out top-notch school catchment zones is one of the key things our agents always take into account.

If you’re aiming for a solid, long-term tenant, it’s smart to scoop up a property in a sought-after school catchment area. Renters in these zones get the green light for enrollment in the nearby public school.