Buying a home near a school could increase your price by up to 35%

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on November 27, 2020
Buying a home near a school could increase your price by up to 35%

School catchment zones can have a big impact on property values, increasing values by up to 35%.

That's according to Domain's 2020 School Zones Report, which reveals the 10 primary and secondary school catchment zones across Australia that have seen the highest price growth year-on-year. 

According to the research, which is based on data from Domain's app, the top 10 school zones in terms of price (not school rankings) all recorded at least a 25% growth over 12-months. 

That's a median price growth of at least a quarter. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 18, 2022. View disclaimer.

Domain reports school catchment boundaries can be a critical factor in the property decision-making process, for both investors and owner-occupiers. 

The property platform's Senior Research Analyst Dr Nicola Powell said certain catchment zones can have a positive effect on house prices. 

“Across Australia’s capital cities the catchments with the biggest increase in house prices were spread across inner, middle and outer suburban locations. School zone price growth performance varied enormously, with neighbouring catchments providing very different outcomes for homeowners," Dr Powell said. 

"Some school zones in the same postcode, suburb or with overlapping catchment zones varied in the pace or even direction of house price movement.”

Dr Powell said while school zones have always been crucial for some when deciding to purchase a home, the ability to work from home could place an even greater emphasis on it.

"Those on higher wages are more likely to be able to adopt flexible working arrangements, this could place additional pressure on home values, particularly in desirable regional or outer suburban locations," she said. 

"The highest growth rates were across a variety of price-points illustrating the importance of education at all budgets."

See also: House prices to rise 9% in 2021 - ANZ

Which school catchments had the biggest growth?

Perth took the top spot for the primary and secondary school catchment zones that reported the greatest house price growth YoY. 

The Como Primary School catchment ($901,750 median price) and Armadale Senior High School ($325,000 median price) recorded growth of 35.6% and 32.7% respectively. 

Otherwise, the rest of the top 10 was dominated by school zones in New South Wales, Victoria and Queensland, with one from Canberra and another from Western Australian featuring as well. 

See also: The most affordable and liveable suburbs in Australia revealed

Primary school growth 

SCHOOL NAMESTATEMEDIANYOY
1.Como Primary School
WA $901,750 +35.6%
2.Dudley Park Primary School
WA $276,000 +30.8%
3.Bald Hills State School
QLD $675,000 +29.2%
4.Newport Public School
NSW $2,000,000 +29%
5.Wynnum West State School
QLD $547,500 +28.8%
6.Rainworth State School
QLD $1,150,000 +27.8%
7.Elwood Primary School
VIC $1,730,000 +27.2%
8.Ipswich Central State School
QLD $365,000 +27%
9.Avalon Public School
NSW $2,562,500 +26.5%
10.Cannon Hill State School
QLD $755,000 +25.8%

Secondary school growth 

SCHOOL NAMESTATEMEDIANYOY
1.Armadale Senior High School
WA $325,000 +32.7%
2.Epping Boys High School
NSW $1,565,000 +32.3%
3.Colo High School
NSW $600,000 +31.9%
4.Applecross Senior High School
WA $1,030,000 +28.9%
5.Willoughby Girls High School
NSW $3,115,000 +28.6%
6.Staughton College
VIC $480,000 +28%
7.Ryde Secondary College
NSW $1,530,000 +27.5%
8.Rosebud Secondary College
VIC $796,000 +27.4%
9.Belconnen High School
ACT $707,600 +26.4%
10.Albert Park College
VIC $1,695,000 +25.6%

Source: Domain’s house price property data, powered by APM. School catchment data provided from a number of sources. School catchment zones are sorted by the annual house price growth of each school catchment.

NSW school catchment growth 

In Sydney, house prices rose across most school catchment zones, with 77% of primary schools and 84% of secondary schools increasing annually.

The highest-growing suburbs were spread out across inner, middle and outer suburban areas: Newport Public School and Epping Boys High School were the best performing catchment zones at 29% and 32.3% on average. 

Victoria school catchment growth 

Melbourne's best performing primary school catchment was Elwood Primary, helping surrounding houses grow 27.2% in value annually. 

Staughton College was the best performing secondary catchment at 28%. 

In Melbourne, three-quarters of primary school zones and 85% of secondary school zones posted positive annual house price growth, with the ten highest massively outperforming the wider city's annual growth. 

Queensland school catchment growth

According to Domain's report, Greater Brisbane secondary school catchments appear to have a more positive impact on house price growth compared to primary school catchments. 

Annually, 72% of secondary school catchments recorded price increases compared to 61% of primary schools. 

Bald Hills State School saw surrounding houses grow by 29.2% yearly, and Flagstone State Community College saw 23.9% growth. 


Photo by Element5 Digital on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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