The surprising thing boosting property prices by nearly half a million

Data from the Real Estate Institute of Victoria (REIV) reveals the catchment zones for some of Melbourne’s higher performing public schools are growing prices considerably when compared with property located within 1-kilometre radius.

Richard Simpson, president of the REIV, said that access to public schools was a key factor for buyers in Melbourne.

“Parents of school-aged children are investing in the family home by buying into areas zoned for some of the city’s best public schools, rather than paying the equivalent in private school fees,” Mr Simpson said.

“Many of these catchment areas experience a high turnover of stock, indicating ongoing buyer demand for homes in these suburbs. Given this demand, these areas are also well-positioned for significant long-term price growth.

“In order to give their child the best possible start to their education, we’re also seeing buyers willing to pay a premium to be located within the zone of some of Melbourne’s best public primary schools.”

Looking at data from the last year up to the end of December, South Yarra Primary School recorded the largest price difference for houses at $410,000, with the median house price of $1,930,000, while those 1 kilometre away were $1,520,000.

The second-largest difference was property around Altona Primary School, with median house prices of $1,225,000 in the zone and $900,000 outside, a difference of $325,000.

Next was Valkstone Primary School in the East Bentleigh area, with zones schools priced at $1,630,000, while those outside the zone went for $1,385,000, a difference of $245,000.

Secondary schools had less of an impact, with the largest price difference being houses around Camberwell High School, with zoned schools priced at $2,399,000 and schools 1 kilometre away priced at $2,110,000, a difference of $289,000.

Following this was McKinnon Secondary College, recording $1,690,000 for houses inside the zone and $1,455,000 at the border of the zone, a difference of $235,000.

The list of schools that have the biggest impact of property prices for the last 12 months to the end of December, according to the REIV, are: