What do School Zones Australian House Prices have in Common?
So, you are browsing recent property sales in one of Australia’s capital cities. And you notice something strange. In some areas, just cross the road and prices can jump by 30% or more. How can this be?
Chances are, you have stumbled on the precious topic of public school zones. In many cases, the location of your house decides what school your children can go to. And not all schools are the same. Some are highly sought after. If your house is in the zone for one of these highly sought after schools, that is going to add enormously to the value of your house.
The school zone story in Australia is almost always about high schools – for children aged 12-18. There are two broad categories of high schools – private, fee paying schools, or public (Government) schools, with very low fees. Most private schools offer very good quality education, but can be very expensive, more than $20,000 fees per student per year. So if you want top quality education for your child, and can’t afford private school fees, the next best thing is to target the best of the public schools.
Public school quality can vary enormously. There are a few select schools that are seen to offer the best, and these are very very popular. You can only get into the school if you live near the school, in the “zone” for that school. That’s why we see articles in the media in Australia like the following …
Prices in popular Sydney’s school zones surged by as much as a third last year, report shows
The Canberra school catchment zones where house prices have skyrocketed House prices in some Queensland state school zones rise by up to 40 per cent Melbourne property prices: The top school zones for house price growth
So, if you plan to invest in the Australian market, here is just another of those little pieces of local knowledge that you will need in order to make good decisions about where to invest. Make sure you get the base advice from someone you can trust!
Prof Brett, (Academic Economist)