The Impact of School Zoning on Real Estate Prices

By Ellen Blundy | October 2023

When it comes to purchasing a property, there are several factors that potential buyers consider, including location, amenities, and transportation accessibility. However, one often overlooked factor that significantly influences real estate prices is school zoning. In Melbourne, school zoning has become a crucial consideration for homebuyers due to the impact it can have on their children’s education and the potential long-term financial benefits. This blog will delve into the influence of school zoning on real estate prices in Melbourne and explore how this phenomenon shapes the local property market.

1. The Importance of School Zoning:
In Melbourne, the quality of education offered by schools significantly varies from one area to another. As a result, parents are keen on securing a property within the boundaries of top-performing public schools or highly sought-after private schools. The desire to provide their children with the best education possible drives homebuyers to prioritize school zoning, making it a crucial factor in their property search.

2. Increased Demand and Competitive Pricing:
Areas with highly regarded schools experience a surge in demand, leading to increased competition among potential buyers. This heightened demand drives up real estate prices, as buyers are willing to pay a premium to secure a property within the catchment area of their desired school. Consequently, houses within these zones tend to sell at higher prices compared to those outside the zones.

3. Property Value Stability:
One advantage of purchasing a property within a desirable school zone is the potential for long-term stability in property values. As educational institutions within popular zones consistently maintain their reputation, this positively impacts the desirability of the surrounding area. Consequently, homeowners in these zones are more likely to experience stable or even increasing property values over time.

4. Suburb Prestige and Reputation:
School zoning can significantly impact the overall reputation and prestige of a suburb. Top-performing schools often attract families seeking quality education, and as a result, neighborhoods within these zones gain a reputation for excellence in education. This increased prestige can further drive up real estate prices within the area, as buyers are willing to pay a premium to reside in a highly regarded suburb.

5. The Ripple Effect:
School zoning can also have an indirect effect on real estate prices in nearby suburbs. If a highly sought-after school zone extends beyond the boundaries of a particular suburb, the desirability and property values of neighboring suburbs may also be influenced. This phenomenon creates a ripple effect, with demand and prices rising in surrounding areas as a result.

Where can I get more information about school catchment areas?

If you’re thinking about getting your children into a particular school, our Peake team can also help you with your search.  We can inform you of what homes are suitable for families in the area, and help you find the right property in the local catchment area.

You can also access more information about school catchment areas and zones by visiting the education department website in your state or by contacting the school directly. You can also use the MySchool site to find out more about academic performance and compare the schools in the area you are interested in.