For parents buying a home, school catchment zones are a major factor in their decision-making.

Yet even singles or those without kids can be impacted by the effect of school catchment zones on property prices so it literally pays to be aware of this factor.

Let's take a look.

School catchment zones: what are they?

These zones are the geographical area surrounding public, or government, schools, and from which the school will favour its core intake of students.

Often known as intake or priority enrolment areas, children living in these zones will be automatically entitled to enrol at schools there.

Families living across town from their preferred school can still enrol at this school - but it will be more difficult for these children to do so and competition from other “out-of-catchment” or “out-of-zone” parents can be extremely high.

Such enrolments are also generally not guaranteed and wait lists may operate particularly if the school already has a high number of in-zone students.

Catchment zone borders can change as well and although students already attending their current school are not impacted, these changes may see parents facing a longer commute or similar.

NB: Independent or private schools don't have school catchment zones; however, they may still take catchment zones into account and either way, may often have long wait lists.

School catchment zones: how do they affect property prices?

Short answer: top-notch state schools usually equal higher property prices when compared to properties outside these schools' catchment zones. 

Expect such properties to also be very tightly held resulting in less of them listed on the market or even available to rent.

And this isn't new news with Real Estate Institute of Victoria (REIV) data revealing in January 2019 that some of Melbourne’s popular state schools were selling for $400,000 more than those outside the catchment zone.

Primary schools in particular hold sway over high schools, then-REIV president Robyn Waters told Canstar in February 2020.

"Location within a well-regarded public primary school zone is important for increasing numbers of parents who plan to send their children to a public primary school followed by a private secondary college," Ms Waters said.

Units aren't immune from school catchment zone correlations either.

REMAX Success describes how unit prices in East Toowoomba soared by 79.1% in 2021 - based on a parent rush to enrol their kids in the sought-after local primary school.

The agency also warned families that such zones can "cross neighbourhoods and cut through suburbs", meaning even two nearby streets in the same suburb can see completely different prices.

As well, high-quality schools in smaller cities and regional areas also experience this trend of correlated higher prices, according to Higher than Average Growth (HtAG).

At the same time, HtAG notes there is no one “hard and fast” rule that establishes a direct relationship between school quality and price growth, according to data based on Australian Curriculum, Assessment and Reporting Authority (ACARA) and National Assessment Program – Literacy and Numeracy (NAPLAN) figures.

School catchment zones: controversial concept

These points are some of the major reasons why parents heartily dislike the concept of school catchment zones yet quality state schools are few and far between - and clearly, are still cheaper than private schools.

However, some of these same state schools are now becoming heavily overcrowded.

The highly popular Alamanda K–9 College in Point Cook in western Melbourne, is one such school.

The college attracts prices around 10% higher than those beyond its catchment zone despite having 10 to 12 classes per year level with its student figures numbering 3,360 in 2022 - a 3,000 increase since it opened in 2013. 

The facility is now about to undergo an upgrade to "expand the capacity of the school and reduce the need for temporary, relocatable buildings ... and ensure there will be more places for local students".

School catchment zones: buyer points to note

At a time of rising cost-of-living prices and interest rate spikes, none of this is good news for family buyers who understandably want their children to have the best education possible.

Indeed, plenty of people are now buying or renting a home in their preferred school zone, and then moving to a cheaper area after enrolling their children at the school - with schools having to allow kids to stay after this move.

An AusFinance article notes that if a new school is under construction close to a home that parents would like to buy, it's worth waiting for its school catchment area to be officially released.

At the same time, the initial hefty purchase entailed in buying higher-priced properties in preferred school zones may pay off in the end, especially when compared to ongoing private school fees.

Monash University senior lecturer, Daniel Melser, told Canstar in February 2020 that buying a home in a quality school zone could be a smart investment for parents looking to keep household costs down in the long run.

But parents should balance school quality with an understanding of the local market conditions, as well as considering factors such as neighbourhood demographics and factors such as employment and transport, HtAG said.

"Evaluating school rankings should not be done in isolation, as supply and demand dynamics in the local real estate market also play a significant role in determining property values and investment potential," HtAG advised.

"These elements can also have a considerable influence on property values and the overall attractiveness of an area for potential buyers."

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