With many young families currently in the market for a larger home, a burning question is whether it’s worth paying a premium to be near good schools.
If you have a young family, how much extra would you pay to be in the catchment area of a good school?
The Real Estate Institute of Victoria found buyers paid an incredible $425,000 above the median average of surrounding areas to be near Beaumaris Secondary College. It’s only fair to share that the suburb is on the coast and near the Royal Melbourne Golf Course.
However, Beaumaris isn’t the only example. The REIV says buyers paid more than $300,000 above the median price of surrounding areas to be near Hampton Primary School.
In Sydney, premiums of up to 3.5% were paid to purchase a home in the catchment areas of highly regarded primary schools, according to a Monash University study in 2019.
Industry researcher CoreLogic has found that a 31% premium was paid to be in the catchment zone of Neutral Bay Public School. For high schools, a 20% premium was paid to be near Hunters Hill High School.
Property portal Domain looked at the Brisbane scene. It found properties near Logan Reserve State School commanded a 40% premium. Homes near Broadbeach State School commanded a 23.8% price premium.
Along with schools, there are a number of other drawcards that can have a powerful influence on price and value in certain locations.
Employment
Properties close to major employment centres, business districts, and job hubs tend to be highly valued. Short commutes attract many buyers and can lead to higher property prices.
Transport
Proximity to public transportation options like buses, trains or subway stations can increase property value. Easy access to transit makes commuting more convenient and reduces the need for a car.
Natural Beauty
Properties with scenic views, such as waterfront or mountain views, or those near parks, lakes or green spaces, often have higher values. The presence of natural beauty can enhance the quality of life.
Amenities
Nearby amenities like grocery stores, shopping centres, healthcare facilities, parks and recreational areas add to a location’s desirability. Walkability to these amenities is also a plus.
Noise
A quiet location away from noisy highways, airports or industrial areas is generally more appealing.
Low crime rate
Safety is a significant concern for homebuyers. Properties in neighbourhoods with low crime rates and a strong police presence are more desirable.
Future investment
Areas with planned infrastructure improvements, such as new transport links, schools or commercial developments, may increase property values.