Property prices up to 10% higher in popular school zones

Property prices in popular school zones across Australia have outperformed by as much as 10%.

Domain’s latest School Zones Report reveals that property prices in almost half of Australia’s primary and secondary school zones have outperformed the house price growth of the suburb they are located in.

The data shows that parents are willing to pay a premium for homes in locations that make their children eligible for enrolment in popular or high-performing government schools.

Domain’s chief of research Nicola Powell said that demand for lifestyle and education is a key driver for homebuyers, but affordability sits at the top of the list of priorities.

The data also shows that Australia’s housing market downturn has had a varied impact on school catchment zones’ house prices, with the smaller capitals showing more resilience than Sydney and Melbourne.

For Sydney, just 46% of primary school catchment zones and 44% of secondary school catchment zones outperformed their respective suburbs.

The data for Melbourne was a touch higher with 50% of primary school zones outperforming and 47% of secondary schools.

Meanwhile, at the other end of the scale, property prices in many of Hobart’s government school zones were higher than the suburbs they are located in – 57% of primary school catchment zones and a huge 82% of secondary school catchment zones outperformed.

“This weaker outcome relative to other cities is anticipated, given Sydney and Melbourne have been leading Australia’s housing downturn, having some of the deepest falls from their house price peaks,” Powell said.

“While the top school catchment zones in Sydney and Melbourne are spread across the cities, they largely favour growing areas that offer affordability, with the majority sitting below the overall median house price.”

Queensland dominates

Demand in school zone hotspots, particularly across Queensland, has skyrocketed as both property buyers and investors look to take advantage of affordable suburbs where house prices are below the capital city median. 

Queensland takes out 7 of the top 10 spots for primary school zones and 9 out of the top 10 spots for secondary school zones.

Each of the 10 primary and secondary school catchment zones has reported higher than 28% house price growth annually. 

Property prices in the Walloon State Primary School catchment area, in Walloon, QLD, jumped 43.9% over the past year.

Tambourine Mountain State High School, in Tambourine Mountain, also in QLD, saw property prices in its catchment area jump 37.9% over the year.

Interestingly, the remainder of each list comprises a mix of locations here too.

The featured suburbs are spread across inner, middle and outer suburban areas however, many topping the list were near capital cities on the outer fringes in more affordable areas.

“Queensland takes the lead with the majority of the highest-growth school catchment zones nationally. While these areas have all experienced growth, most are well under their capital cities’ median house prices bringing to light the impact of the past years’ cost of the living environment,” Powell said.

“At the start of 2022, families were searching for school catchment zones close to natural environments like beaches and parks, but now it seems affordability is highest on families’ property purchase wish lists.”

Australia’s top 10 primary school zones for house price growth

Australia’s top 10 secondary school zones for house price growth

School catchment areas influence property prices

While sea views, idyllic streets and open spaces are sought-after characteristics for home buyers and investors, school catchment areas are increasingly becoming an important factor when deciding where to purchase a new property.

The fact Domain’s report shows the top 10 areas with median house prices spanning a variety of values, and spread across all of Australia’s major cities, shows how important education is for buyers shopping at all price points.

The data suggests certain school zone boundaries can have a significantly positive effect on house prices.

Sydney school catchment zones that have had the greatest annual house price growth

Domain’s data shows that annual house price growth in 46% of Sydney primary and 44% of Sydney secondary school catchments analysed surpasses the respective suburb price growth, with 88% of primary school and 95% of secondary school catchments seeing up to 10% more growth compared to the suburb they are located in.

The top school catchments are spread across Sydney, buyers largely favour areas that are growing and offer affordability, with the majority sitting below the overall Sydney house price.

House price growth varies between neighbouring school catchments too. 

For example, the Artarmon Public School catchment has seen the largest annual increase at 44% while the nearby North Sydney Public School in Waverton dropped 13%.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Artarmon Public School	Artarmon	$3,545,000	43.50%
Primary	Darcy Road Public School	Wentworthville	$1,212,500	32.90%
Secondary	Oberon High School	Oberon	$550,000	31%
Primary	Marsden Park Public School	Marsden Park	$1,191,500	26.80%
Primary	Wentworth Falls Public School	Wentworth Falls	$1,132,500	24.50%

Melbourne school catchment zones have had the greatest annual house price growth

Bucking the national trend, Melbourne is the only city in which primary and secondary schools have an equal influence on growth. 

This trend has reversed compared to last year (when secondary school zones had a greater influence), suggesting that, at a time of escalating costs of living, household budgets have become stretched.

While the top school zones are spread across inner, middle and outer suburbs and across a variety of different price points, a number that topped the list are in suburbs further away from the city centre, emphasising lifestyle preferences, affordability and the changing demand for properties since the beginning of the pandemic.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Alphington Primary School	Alphington	$2,260,000	27.90%
Primary	Balnarring Primary School	Balnarring	$1,842,500	24.50%
Primary	Mount Dandenong Primary School	Mount Dandenong	$1,090,000	23.80%
Primary	Bunyip Primary School	Bunyip	$840,000	22.60%
Secondary	Drouin Secondary College	Drouin	$855,000	22.10%

Brisbane school catchment zones that have had the greatest annual house price growth

Queensland dominates the top 10 list for both primary and secondary school catchment areas for 2023.

This is an impressive feat considering the recent decline in the property market but emphasises the strong surge in house prices during the upswing.

A larger proportion of Brisbane’s primary school catchments have outpaced their respective suburbs’ performance, at 54% compared to 47% of secondary schools, with around 90% of primary school and 86% of secondary school catchments recorded up to 10% additional annual growth above their respective suburbs.

The top Brisbane school catchments are located across the inner, middle and outer suburbs with a variety of price points but more affordable outer locations dominate the list.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Walloon State School	Walloon	$626,000	43.90%
Primary	Canungra State School	Canungra	$950,000	42.90%
Secondary	Tamborine Mountain State High School	Tamborine Mountain	$910,000	37.90%
Primary	Carole Park State School	Wacol	$507,000	35.20%
Primary	Blair State School	Sadliers Crossing	$535,000	35.00%

Adelaide school catchment zones have had the greatest annual house price growth

Aligning with the broader national trend, Adelaide’s secondary schools have a greater impact on price growth, with all school catchment areas in Adelaide seeing positive house price growth. 

It is only marginally lower for primary schools in 99% of the school catchment areas analysed.

The top school catchment areas for house price growth are across a variety of different price points, suggesting that no matter the budget we all place equal importance on education.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Coorara Primary School	Morphett Vale	$517,500	35.80%
Primary	Marryatville Primary School	Kensington	$1,370,000	33.50%
Primary	Mount Barker Primary School	Mount Barker	$706,250	33.30%
Primary	Westbourne Park Primary School	Westbourne Park	$1,355,500	32.90%
Primary	Nairne Primary School	Nairne	$651,184	32.00%

Perth school intake areas that have had the greatest annual house price growth

Price growth varies enormously across Perth with neighbouring local intake areas providing very different outcomes for homeowners, the report reveals.

Some school local intake areas in the same postcode or suburb vary in the pace or direction of price movement.

House prices have risen across most school local intake areas analysed, up in 93% of primary and 94% of secondary schools, aligning with the rising property market.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Davallia Primary School	Duncraig	$1,068,000	28.70%
Primary	Sorrento Primary School	Sorrento	$1,300,000	28.70%
Primary	Beaconsfield Primary School	Beaconsfield	$1,160,000	28.10%
Primary	East Hamersley Primary School	Hamersley	$713,000	27.30%
Primary	Wembley Downs Primary School	Wembley Downs	$1,155,000	26.20%

Hobart school intake areas that have had the greatest annual house price growth

According to Domain’s report, price growth varies enormously across Hobart, with neighbouring school local intake areas providing very different outcomes for homeowners.

Positive growth was recorded across all secondary school local intake areas and 85% of primary schools.

The percentage point difference between the proportion of secondary school local intake areas outperforming their respective suburbs compared to primary schools is the highest of the capital cities, highlighting the significance of secondary schooling in the state.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Cambridge Primary School	Cambridge	$1,122,500	37.30%
Primary	JRLF – East Derwent Primary School	Bridgewater,	$482,500	34.00%
Primary	Huonville Primary School	Huonville	$692,500	27.80%
Primary	Lauderdale Primary School	Lauderdale	$892,000	27.10%
Primary	Taroona Primary School	Taroona	$1,183,500	25.80%

Canberra school priority enrolment areas that have had the greatest annual house price growth

Potential buyers looking to enter a particular priority enrolment area in Canberra will find prices have risen at much faster than in their respective suburbs. 

Canberra is the only city to see primary schools outperform secondary schools, with a higher proportion of priority enrolment areas with positive annual growth.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Neville Bonner Primary School	Bonner	$980,000	22.50%
Primary	Margaret Hendry School	Taylor	$970,000	21%
Primary	Theodore Primary School	Theodore	$880,500	19%
Primary	Miles Franklin Primary School	Evatt	$964,500	18.30%
Primary	Garran Primary School	Garran	$1,500,000	17.20%

Darwin school priority enrolment areas that have had the greatest annual house price growth

In Darwin, 79% of primary and all secondary schools analysed recorded positive house price growth, although prices vary widely.

Some school priority enrolment areas in the same postcode or suburb vary in the pace of price movement, showing the impact of enrolment areas on prices. 

For example, Nightcliff Primary School and Millner Primary School show a 14% increase and a 6% decrease, respectively.

School level	School name	School suburb	Median property price to July 2022	YOY increase
Primary	Nightcliff Primary School	Nightcliff,	$800,000	14.30%
Primary	Humpty Doo Primary School	Humpty Doo	$710,000	14.10%
Primary	Gray Primary School	Gray	$432,500	13.10%
Secondary	Taminmin College	Humpty Doo	$680,000	11.10%
Primary	Leanyer Primary School	Leanyer	$685,000	10.00%

How is the data calculated?

Domain sorted the school catchment zones based on the annual house price growth in each school catchment.

It then calculates annual house price growth by comparing the median sale price of all houses sold in a school catchment zone from August 2020 through to July 2021 to the median sale price from August 2019 to July 2020 using APM data.

A full list of Domain Group’s 2020 School Zones Report for each capital city across Australia can be accessed here.

A final word

As always, while these school zone hotspots make for interesting reading, these aren’t necessarily the areas I would necessarily recommend investing in.

While school zones have become an important factor to consider when buying an investment property, there are many other things to also take into account.

At Metropole, we always advise on the importance of investment-grade properties and locations, rather than chasing a hotspot or high-population growth area.

In other words, areas and properties which hold their value over the long term, rather than benefit from an uptick in demand.

But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.

Because aside from remembering that you should focus your efforts on investment-grade properties and locations, you also need to remember that property investing is a process, not an event.

That means that things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.

And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.