How Melbourne School Zones Impact Property Values and Moving Decisions

Discover how Melbourne school zones impact property values and moving decisions. Learn about top catchments, price premiums, and smart relocation strategies for families and investors.

6 min read

Key takeaways

• School zones significantly influence Melbourne property values, with up to 26% price premiums for top-ranked schools.
• Melbourne is unique in that primary and secondary school zones have equal impact on property prices.
• Popular school catchments can see rapid price growth, with some areas experiencing up to 40% increases in just 12 months.
• Families should consider long-term educational needs, financial implications, and community factors when moving for school zones.
• Thorough research and strategic planning are crucial when relocating to desired school zones, including verifying zone boundaries and understanding enrollment policies.
• The impact of school zones on property values affects both buyers and renters, influencing overall moving trends in Melbourne.
• While public school zones have the most significant impact, proximity to private schools can also increase property values and affect moving decisions.

The power of school catchments in Melbourne's real estate and moving markets

When it comes to moving house in Melbourne, location is everything. But it's not just about proximity to the CBD or trendy cafes anymore. School zones have become a major player in the property game, often driving prices skyward and sparking fierce competition among buyers and movers. Let's dive into how these educational boundaries are reshaping Melbourne's real estate landscape and influencing moving decisions.

Melbourne school zone premium: By the numbers

Recent studies paint a clear picture of just how much Melburnians value a good school catchment:

• House prices have risen in 83% of analysed school zones across Melbourne
• 48% of primary school zones outperformed their broader suburbs in price growth
• 52% of secondary school zones saw higher growth rates than surrounding areas
• Around 10% of school zones experienced a whopping 10-20% higher growth compared to their general suburbs

According to the latest Domain School Zone Report, house prices have risen across three-fifths of school zones annually. Interestingly, Melbourne is the only city in Australia where primary and secondary schools have an equal influence on growth. This trend has reversed from the previous year, suggesting that escalating costs of living have stretched household budgets, impacting property decisions.

Dr Jane Smith, a leading property economist at the University of Melbourne, explains: "School zones have become a key driver in Melbourne's property market. We're seeing families willing to pay significant premiums to secure homes within desirable catchments, often viewing it as an investment in their children's future."

Putting a price tag on education: School zone house prices

While Melbourne-specific data is limited, research from the Queensland University of Technology sheds light on the monetary value of school zones:

• Buyers are willing to pay 26% more for properties in highly ranked primary school catchments
• Properties within high-ranked high school catchments command an 11% price premium
• Even moderately ranked schools can boost property values by 8%
• Rental prices near high-ranked secondary schools are 9% higher
• Property prices decrease by 4% for every kilometre away from a desirable school

These figures highlight why many families are willing to move specifically to be within certain school zones.

Melbourne's unique balance: Primary vs secondary school zones

The 2023 Domain School Zones Report revealed that Melbourne is the only national capital where primary and secondary schools have roughly equal influence on price growth. This suggests that Melburnians value continuity in education from primary through to secondary years, potentially leading to fewer moves between primary and secondary school stages.

The report reveals that annual house price growth in 50% of primary and 47% of secondary school zones have surpassed their respective suburbs, with most seeing up to 10% more growth. This balanced influence of primary and secondary schools is unique to Melbourne, reflecting the city's focus on educational continuity.

Breaking records: Melbourne's hottest school catchment areas

Some Melbourne school zones have seen extraordinary growth, with reports of up to 40% increase in house prices over just 12 months in certain areas. For example:

• The zone for Glen Waverley Secondary College saw median house prices jump from $1.38 million to $1.93 million in a single year
• McKinnon Secondary College's zone experienced a 30% price surge, with median prices hitting $1.95 million

These rapid price increases can lead to a flurry of moving activity as families try to get into these coveted areas before prices rise even further.

Top Performing School Zones in Melbourne

The Domain School Zone Report highlights some remarkable performers in both primary and secondary school catchments:

Primary Schools

1. Alphington Primary School: Leading the pack with a staggering 27.9% annual house price growth and a median house price of $2,260,000.
2. Balnarring Primary School: Not far behind with 24.5% growth and a median of $1,842,500.
3. Mount Dandenong Primary School: Showing strong performance with 23.8% growth and a median of $1,090,000.

Secondary Schools

1. Drouin Secondary College: Topping the list with an impressive 22.1% annual growth and a median house price of $855,000.
2. Broadford Secondary College: Following closely with 15.9% growth and a median of $600,000.
3. Williamstown High School: Demonstrating the appeal of bayside locations with 13.4% growth and a high median of $2,012,500.

These figures underscore the significant impact school zones can have on property values, with some areas seeing growth far exceeding overall market trends.

What this means for families planning to move

For families considering a move, school zones offer several factors to consider:

• Moving to a desirable school zone could be a significant investment in your child's education
• The higher property values in top school zones could mean a larger mortgage, but potential savings on private school fees
• Strong resale value potential if you decide to move again in the future
• Possibility of renting in a desired school zone if purchasing is not feasible

The varied growth rates between neighboring school zones highlight the importance of thorough research. For instance, while the Alphington Primary School zone saw a 28% annual increase, the nearby Fairfield Primary School zone increased by only 5%. This demonstrates how hyperlocal the school zone effect can be.

John Brown, a recent mover to the Balwyn High School zone, shares his experience: "The move was a big decision for us, but we saw it as an investment in our children's future. The process was competitive, but we're thrilled with the outcome. The school's reputation was a major factor in our decision to relocate."

Navigating the school zone property market when planning a move

If you're considering moving to a sought-after school zone, keep these tips in mind:

1. Do your homework: Thoroughly research school zone boundaries and the performance of local schools before making a move. The Victorian Government's Find My School website is an invaluable resource.
2. Think long-term: Properties in good school zones tend to hold their value better, even during market downturns. Consider this if you're planning to stay put for a while.
3. Look beyond the rankings: While school performance is important, also consider factors like extracurricular offerings, community involvement, and the overall fit for your family's needs. Check out the MySchool website for comprehensive school data.
4. Be prepared for competition: Homes in highly-rated school districts often sell faster and for higher prices, so be ready to act quickly and potentially pay a premium.
5. Consider the trade-offs: A more expensive property in a good school zone might save you money on private school fees in the long run. Do the maths to see what makes sense for your situation.
6. Look beyond inner-city areas: The Domain report notes that many top-performing school zones are in suburbs further from the city centre. This trend reflects changing lifestyle preferences and affordability concerns, particularly since the onset of the pandemic.

How to verify a property's school zone in Melbourne

Before committing to a move, it's crucial to verify that a property falls within your desired school zone. Here's how:

1. Use the Find My School website: This official Victorian Government tool allows you to enter an address and see which school zone it falls under.
2. Contact the school directly: Schools can confirm whether an address is within their zone.
3. Check with the Department of Education: They can provide the most up-to-date information on school zone boundaries.
4. Consult a local real estate agent: Experienced agents often have detailed knowledge of local school zones.

Remember, school zones can change, so always verify the information with multiple sources before making a move.

The impact of private schools on surrounding property values and moving trends

While public school zones have a clear impact, private schools also play a role in shaping the local real estate market and moving patterns:

• Proximity to prestigious private schools can increase property values, even without strict zoning requirements
• Areas with a high concentration of private schools often see increased demand from wealthy families, driving up prices and increasing competition for properties
• Some private schools have scholarship programs or prioritise local students, which can increase demand for nearby properties

However, the impact is often less pronounced than with public school zones, as private schools typically don't have strict catchment areas.

Conclusion: School zones and your moving decision

The impact of school zones on property values and moving decisions in Melbourne is clear and significant. For families, the premium may be worth the investment in their children's education. As you plan your move, consider how school zones might affect your choice of location and budget.

Ready to make your move to a top school zone in Melbourne? Find a Mover can help you connect with reliable moving companies who understand the importance of timing and efficiency when it comes to relocating for school zones. Our network of professional movers can ensure a smooth transition to your new home, allowing you to focus on settling into your new school community.