August 31, 2017 | School Zones Pushing Up Property Prices
Houses within Melbourne’s public-school zones are now commanding serious premiums over their un-zoned counterparts. REIV data has just revealed that the median house price within the school zone versus the median house price located 1km outside of the school zone can cause a price discrepancy of over half a million dollars.
When faced with the option of paying for private school fees versus purchasing a house within an acclaimed school’s zoning, it may make more sense to purchase a home within an acclaimed school zone that is comparable or better than the nearby private schools. With capital growth rates being reflective of the school’s performance, there is the potential to educate your children whilst growing your asset. The alternative would be to send your children to a private school, with the money utilised on school fees not being returned in a direct sense.
The trend does not just extend to secondary schools with parents vying for the best VCE outcome for their children, it now encapsulates primary schools as well with South Yarra taking out the top spot with a $565,000 price differential. When it came to secondary schools, McKinnon Secondary College subjected the suburb to a $247,500 price differential with Camberwell High and Malvern Central second and third respectively.
Be warned however, school zones are not set in stone and as outlined earlier this year with Melbourne Girls College rezoning, carefully planned moves into the catchment areas can become nullified.