As any parent will be well aware, the desire to give one’s children the best opportunities in life is a strong one. It should come as no surprise, therefore, that high-performing schools can push up property prices in their corresponding school zones.
What is a school zone?
School zones – also known as catchment areas – are distinct areas that families are required to live in for children to be eligible for automatic enrolment at a given local state school. Boundaries are set out by the school and can be altered over time depending on factors such over- or under-subscription, or changes to demographics in the area. Generally speaking, school zones do not exist to discriminate against parents and their children but to maintain healthy class sizes.
Parents and children that live outside of a given school zone can still apply to attend, but they are not guaranteed a place. As such, it is a fairly common practice for parents to move to zones set out by their favourite schools.
How strong is the correlation between property prices and school zones?
Areas that include sought-after state schools tend to have higher property prices. Indeed, all of the data collected on the subject so far indicates a strong correlation between in-demand school zones and higher housing costs. According to a recent Domain school zones report, properties in catchment areas set out by high-performing schools can sell for around 10-15% more than they would otherwise. However, it is also important to note that schools alter their zones at regular intervals, so properties on the fringes of a zone may be affected.
What’s more, it’s also vital to remember that a school’s academic results can change over time. If a once high-performing school starts to see results plummet, property prices are likely to fall in tandem. If they start to improve, property prices may rise.
So which are the most promising school zones…
Perth
Although Perth has been experiencing a slump in property prices recently, popular school zones helped to buck this trend. Properties around Girrawheen Senior School and West Leederville Primary School, for example, have actually helped to reverse the trend and seen recent price rises.