Whether you’re a property investor or are looking to buy your next (or first) home, there are so many things to take into account before making a purchase.
Sure, the location, amenities, and transport are all important factors that affect a property’s value.
But, did you know that a well-rated school can also do wonders for property value?
In fact, new data from Domain shows that school catchment zones can actually have a significant influence over how quickly property prices grow.
That’s because some people are willing to pay a significant premium to be located within some primary and secondary school zones.
In Sydney, competition for places in preferred school zones has pushed property prices in some areas far above the city’s median.
And with Sydney’s elite private schools costing parents up to an enormous $41,090 per year, per child, it’s understandable that the city’s top-performing public schools are in high demand.
Domain Group’s latest 2023 School Zones Report shows that while house prices have increased annually across 66% of primary and 69% of secondary school catchments, this is a weaker outcome relative to other major cities across the country.
But the data was anticipated given Sydney is leading Australia’s housing downturn, having fallen the furthest from its respective house price peak.
While the top school catchments are spread across Sydney, they largely favour areas that are growing and offer affordability, with the majority sitting below the overall Sydney house price.
Interestingly, house price growth varies between neighbouring school catchments.
Artarmon Public School catchment has seen the largest annual increase at 44%, while prices in the nearby North Sydney Public School in Waverton dropped 13%.
The report also reveals that annual house price growth in 46% of primary and 44% of 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.
Here are the high school and primary school catchment areas which have come out on top for Sydney.
Best suburbs in Sydney for high schools
The most significant increase in house prices was seen in the Oberon High School catchment area in the Central Tablelands region of NSW.
Median property prices in the catchment area have shot up a huge 31% year-on-year to a new median of $550,000.
In second place, and some distance behind is Riverstone High School on the northwest fringes of Sydney with houses in the catchment area rising 18.4% over the year to a new median of $1.16 million.
In third place, with a 17.2% increase in house prices, was the Elderslie High School zone in southwestern Sydney with a new median of $1.02 million.
|№||Suburb||School Name||Median Property Price||YoY|
|1||Oberon||Oberon High School||$550k||31.00% ↑|
|2||Riverstone||Riverstone High School||$1.16M||18.40% ↑|
|3||Elderslie||Elderslie High School||$1.02M||17.20% ↑|
|4||Mount Annan||Mount Annan High School||$1.005M||16.60% ↑|
|5||Bossley Park||Bossley Park High School||$1.18M||15.40% ↑|
|6||Narellan Vale||Elizabeth Macarthur High School||$1.05M||14.40% ↑|
|7||Glenmore Park||Glenmore Park High School||$1.905M||14.20% ↑|
|8||Nirimba Fields||Wyndham College||$1.1M||14.10% ↑|
|9||Hinchinbrook||Hoxton Park High School||$1.025M||13.80% ↑|
|10||Picton||Picton High School||$905k||13.20% ↑|
Best suburbs in Sydney for primary schools
For Sydney’s primary schools, the data reveals that houses located in the catchment area for Artarmon Public School on Sydney’s lower north shore experienced the biggest price increase, of a huge 43.5% over the 12 months to July 2022.
The new median price for the suburb is $3.345 million.
In second place, with a median house price of $1.212 million, is the catchment area surrounding Darcy Road Public School in Wentworthville in Sydney’s west.
This school zone saw house prices jump 32.9% over the period.
With a house price hike of 26.8% to $1.191 million, the catchment area for Marsden Park Public School to the north-west of Sydney’s CBD came in third place.
|№||Suburb||School Name||Median Property Price||YoY|
|1||Artarmon||Artarmon Public School||$3.545M||43.50% ↑|
|2||Wentworthville||Darcy Road Public School||$1.213M||32.90% ↑|
|3||Marsden Park||Marsden Park Public School||$1.1915M||26.80% ↑|
|4||Wentworth Falls||Wentworth Falls Public School||$1.1325M||24.50% ↑|
|5||Glenmore Park||Surveyors Creek Public School||$1.226M||22.60% ↑|
|6||Mount Lewis||Mount Lewis Infants School||$1.258M||22.60% ↑|
|7||Bonnyrigg Heights||Bonnyrigg Heights Public School||$1.11M||22.00% ↑|
|8||Erina||Woodport Public School||$1.17M||21.90% ↑|
|9||Balmain East||Nicholson Street Public School||$3.345M||21.50% ↑|
|10||Cobbitty||Cobbitty Public School||$1.0825M||21.30% ↑|
The bottom line
When it comes to your property value, there are many factors that weigh into the final number.
Understanding what affects the value of your investment property means you’re better placed to make the best financial decisions when it comes to renovation, improvements, or even selling.
Equally, the information also helps you to buy the best investment-grade property available to suit your needs.
After all, you want an investment property to tick most, if not all, of these boxes.