School Zones Impact Property Prices in Victoria
Sought-after government school zones can increase property prices by over $150,000 in Victoria, with some families opting for the higher property cost over private school fees. Data from property analytics group Cotality indicates that Melbourne's inner north, including the Princes Hill Secondary and University High School catchment, commands a 23 percent premium, an additional $356,700, compared to properties outside the zone.
Several schools recognized for strong VCE results, such as Glen Waverley Secondary College and McKinnon Secondary College, are also associated with higher housing prices, showing premiums of 13 percent and 10 percent respectively within their zones. Cotality's head of research, Eliza Owen, noted that while schools are a significant factor, they are not the sole contributor to these increased prices. Owen also observed that properties in many desirable school zones have recently shown slightly less long-term capital growth, suggesting potential affordability challenges.
Regional Impact and Family Decisions
Higher property prices linked to school catchments are not exclusive to Melbourne's inner suburbs. In Frankston, properties within the Frankston High School zone incur an additional 20 percent, or $160,000, according to a report by the Real Estate Institute of Victoria. Katie Gates purchased a home in the Frankston High School zone in 2019, accepting a $50,000 premium, to ensure her sons could attend the high-performing public school, viewing it as a more economical choice than private education for two children.
Some families reportedly employ various methods to gain access to these zones, including purchasing land or renting properties temporarily to establish residency for enrollment purposes. Frankston High School principal Andrew Batchelor acknowledged the increased demand driven by the school's reputation and its competitive positioning against private institutions. The Elisabeth Murdoch College zone in Langwarrin also shows a premium, with homes averaging $54,300 more than those outside the zone.
Policy and Market Dynamics
Eliza Owen suggested that investing in schools located in less exclusive areas could alleviate housing price pressure and assist parents. A Department of Education spokesperson stated that school zones are determined by need and forecast enrollment, not by housing prices or suburban boundaries, confirming that every child is entitled to enroll at their local school based on their residence.