Homes in the catchment zones of Melbourne’s best public schools are attracting six-figure premiums, compared with nearby properties just outside the zone, according to new data from the REIV.

REIV president Richard Simpson says, "Parents of school-aged children are investing in the family home by buying into areas zoned for some of the city’s best public schools, rather than paying the equivalent in private school fees."

The REIV data shows the median price of houses in highly sought after public school catchments is up to $400,000 more than homes one kilometre outside the zone.   

The median price of a home in South Yarra Primary catchment is $410,00 more than a home just outside the zone

In the year to 31 December, South Yarra Primary School added the greatest premium. Homes within the South Yarra Primary School zone had a median price of $1,930,000, while properties bordering the zone had a median price of $1,520,000 – a difference of $410,000.

Altona Primary School delivered the second greatest boost. The median price for houses in Altona Primary's zone was $1,225,000, while houses just outside the zone fetched $325,000 less.

Source: REIV.

Significant capital gains are being made

Simpson said access to good public schools is a key factor when home owners are considering where to buy, and homes in the catchments for the best schools are delivering significant capital gains for owners. 

“Parents of school-aged children are investing in the family home by buying into areas zoned for some of the city’s best public schools, rather than paying the equivalent in private school fees," he said.

“Many of these catchment areas experience a high turnover of stock, indicating ongoing buyer demand for homes in these suburbs," said Simpson. 

"Given this demand, these areas are also well-positioned for significant long-term price growth."

Camberwell High School is delivering the greatest boost to house prices for high schools

There was a $289,000 difference between the median price of homes in the catchment for Camberwell High School and homes only bordering the zone. 

Source: REIV.

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