This article was originally published by Samantha Landy on Feb 20th, 2018 via news.com.au
MELBOURNE’S top public schools are spurring A-grade results on the property market, with houses in their zones commanding as much as $410,000 more than those just outside.
Parents are coughing up the biggest property premium to put down roots in the South Yarra Primary School catchment, according to new Real Estate Institute of Victoria figures.
Camberwell High was top of the class when it came to secondary schools.
REIV president Richard Simpson said while Melbourne’s secondary zones had impacted property prices for years, primary schools were also becoming a force in the market as parents endeavoured to give their kids “the best possible start to their education”.
“These areas are well positioned for significant long-term price growth,” he said.
Houses within the South Yarra Primary region earned a $1.93 million median last year — $410,000 more than those within a 1km radius outside it, REIV data shows.
The medians for houses zoned for Altona Primary, Bentleigh East’s Valkstone Primary, Fitzroy Primary and Hampton Primary were $325,000, $245,000, $235,000 and $190,000 higher respectively than those just outside.
The Camberwell High catchment commanded an average premium of $289,000, McKinnon Secondary, $235,000, Frankston High, $128,400, Box Hill High, $90,000, and Mount Waverley High, $78,500.
The Property Bureau director Kristy Caskey said for parents with more than one child, buying in a public school zone to ensure their kids admission could be a financially savvy move, saving them from paying private school fees.
ASG’s Education Costs Estimates found the total cost of private education in metropolitan Victoria would be up to $15,918 at primary level and $29,098 at secondary level this year.
Ms Caskey said houses inside Melbourne’s top zones also typically enjoyed above-average price gains.
She warned parents shelling out extra for A+ locations may need to compromise on the standard of house they buy, opting for an “ugly ducking” they can renovate rather than a ready-to-move-in home.
LJ Hooker Frankston area specialist Nancy Nugent said parents from all over Melbourne were digging deep to buy into the Frankston High catchment.
“For anything that’s in the zone, you may as well put another $100,000-$150,000 on the price tag,” she said.
Jason Jun and Hannah Park were willing to pay more for their Frankston South house to get their three sons into the top school: “The teachers are great, it offers good sports and camps. It’s one of the best state schools,” Mr Jun said.
They’re now selling the five-bedroom house they built two years ago at 12 Neil St to upsize to a larger property nearby. It has a $1.35-$1.485 million price guide and March 10 auction date.
Jellis Craig agent Mark Pezzin said while Balwyn High used to be the focus of property-buying parents in the leafy inner-east, its increasing difficulty to crack had caused purchasers to switch their focus to the “highly regarded” Camberwell High.
“(Buying in the zone) is an attractive proposition — if parents spent $100,000 more, they’re going to be in front compared to if they’d paid private school fees.”
Mr Pezzin said the suburb’s popular Hartwell Primary was also impacting prices, with REIV figures showing houses in its zone were earning $51,000 premiums.
MELBOURNE SCHOOL ZONES BOOSTING PRICES
Camberwell High School: $2.399m median house price in zone vs. $2.11m in 1km border = $289,000 difference
McKinnon Secondary College: $1.69m vs. $1.455m = $235,000 difference
Frankston High School: $778,400 vs. $650,000 = $128,400 difference
Box Hill High School: $1.425m vs. $1.335m = $90,000 difference
Mount Waverley High School: $1.407m vs. $1,328,500 = $78,500 difference
South Yarra Primary School: $1.93m median house price in zone vs. $1.52m in 1km border = $410,000 difference
Altona Primary School: $1.225m vs. $900,000 = $325,000 difference
Valkstone Primary School (Bentleigh East): $1.63m vs. $1.385m = $245,000 difference
Fitzroy Primary School: $1.635m vs. $1.4m = $235,000 difference
Hampton Primary School: $2.05m vs. $1.86m = $190,000 difference
Lloyd Street Primary School (Malvern East): $2m vs. $1.87m = $130,000 difference
Source: REIV, data for 2017