Annual house price growth figures in key government school catchment zones are outpacing capital city growth by more than five times in some key areas, according to Domain’s Annual School Zones Report.
With the new school year just underway, Domain last week released its Annual School Zones Report, uncovering the primary and secondary government school catchment zones that have experienced the highest house price growth rates in 2016.
Victorian school zones featured heavily in the national top 10 this year, in line with the price growth trend for the state in comparison to Sydney, which tapered in 2016.
How does it work?
The boundaries of school catchment zones are very often a critical factor in the property decision-making process for parents, as it influences where a child can be enrolled. Usually, house price growth is reported based on capital cities and suburbs. Domain’s property app is able to classify property listings into one of the 4000 school catchment zones they may fall in all over Australia. When school catchment zones are overlaid with Domain’s property market data, it paints a more detailed picture of price trends that may be useful for parents or investors on the property journey.
“A school can be considered desirable for many reasons, often which are personal and unique to the family, but Domain’s School Zone Report paints a whole new picture around supply and demand,” said Dr Nicola Powell, Domain’s Chief Data Scientist.
“Nationally, the top 10 growth rates around particular schools were up between 18 – 41 percent in 2016. To put this into perspective, in the same period, Sydney house price growth was around 1.5 percent, and Melbourne, around 7.3 per cent.
“While large variations across suburbs in capital cities is normal, and many factors influence price growth in a given area, this data does suggest a relationship between high price growth and school catchment zones.
“We know from anecdotal feedback from both agents and parents that a desirable school zone can influence prices by up to 10-15%.
“Securing a spot in a top school is often the number one priority for many parents — it can play a huge role in determining the kind of lifestyle a family leads for many years. Having the right information about school catchment zones at your fingertips is as important as suburb price trends for parents and Domain’s School Zone Report certainly sheds light on some interesting trends.”