Do you consider school catchments when buying a home?
Why school catchments matter when buying a home
... (even if you don't have kids)
For family buyers, school catchment zones are among the most important criteria. Photo: iStock
Why school catchments matter when buying a home (even if you don't have kids)
Obviously, you’ll pay a premium for a water view, a beachfront cottage or a home within a short commute of a major city centre.
But did you know that school catchments can also significantly influence property prices?
Domain’s annual School Zones Report confirms that across the nation’s combined capital cities, a high percentage of primary and secondary government school catchment zones not only show strong price growth, they outperform the growth of the suburb they are located in.
Dr Nicola Powell, Domain’s chief of research and economics, says growth rates can be as much as 10 per cent higher and cross multiple price points, revealing the importance Australian families place on a good education.
“We know that as part of the property decision-making process, parents and investors consider the geographical location of a potential property in relation to a school catchment zone,” she says.
“When people are looking for a home, they’re looking for a lifestyle, and education is a big part of that picture, be it in the inner-city suburbs or the coastal regions of Australia.”
How can I find out about school catchment zones?
Defined as the geographical location where a state school’s core intake of students must live, a school catchment zone can cross multiple suburbs but may not include a suburb in its entirety.
Domain makes it easy to work out which zone any given property falls under by displaying the school catchment zones and nearby independent schools on property listings.
Property seekers can also search by school catchment zone on Domain – simply type the name of a school into the property search field, and all the properties currently for sale or rent in that school’s catchment area will be displayed.
How do school catchment zones affect property prices?
As demand for entry into a particular school rises, so do property prices.
“The cost of living is rising, and I think what that means is it places pressure on those parents who were trying to send their children to private school,” says Powell. “For some people, wage growth is not keeping pace with the cost of living, so they’ve opted to take their kids out of private school and move to a good catchment zone for a public school.”
The Agency Boroondara’s Luke Saville says school catchments are often the first thing buyers will look at before starting their property search.
“I’ve been in real estate for 12 years now, and it’s always been a factor,” he says. “It’s a real investment that buyers will get back when they go to sell down the track. If you pay a five to 10 per cent premium now, you will get that or more back down the track.”
Can school catchment zones change?
Both Powell and Saville warn buyers that school catchment zones can and do change, such as when a school increases its student capacity, if an area is densifying or if a new school opens.
Buying away from the catchment borders can be a good strategy for those who want their home to remain within their desired school catchment zone.
Saville says he’s known clients that have been outside the catchment for a popular school, and when the school extended its catchment to include their property, the home had a subsequent increase in value.
“It’s a demand and supply situation,” he says. “If you’ve got to lift your budget to buy into a particular catchment, borrowing more is probably worth it in the long run.”
Are school zones important if I don’t have kids?
Even for those buyers who don’t need access to schools, it still pays to be aware of the catchment zone you are buying into.
“If you don’t have kids and you’re not planning to have kids, it can be as important [to consider school catchments] when you’re purchasing,” Powell says. “Because they can influence price growth, you need to think about your long-term investment. By purchasing in the right zone, you could impact your eventual sale price.”
On the flip-side, if you place no importance on school zones, but you’re prepared to pay a premium for a view or a larger house, you may want to direct your money towards these attributes in a suburb without significant catchment premiums.
It's a good idea for buyers to take note of the school catchments that properties fall into, as homes in popular catchments are often in high demand.
Do private schools have catchment zones?
While they don’t typically have a catchment zone, the location of private schools is still worth considering before you buy.
“People love convenience,” says Saville. “A lot of houses that adjoin colleges sell for big prices. Also, a lot of those schools will bid at auction to buy adjoining properties because they want to extend their grounds. If you start to find yourself competing with those big schools, you could pay too much, so it’s important to understand who you’re bidding against at auction.”
Why school catchment zones matter when buying a home
A school catchment zone is the geographical location in which a state school’s core intake of students must live.
School catchments can influence property prices — homes in catchments of popular, well-regarded schools may be in high demand.
School catchment zone boundaries can change, meaning the catchment that a home falls into can change over time.
Buyers without children should still consider school catchment zones, as homes in sought-after catchments can command premium prices.