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Homes located within sought-after school catchments are commanding substantial premiums in Victoria, as buyers prioritise educational access in their purchasing decisions.
Findings from the Real Estate Institute of Victoria (REIV) have revealed that proximity to nearby schools has been a significant consideration for buyers, with properties in school catchment zones selling for premium prices.
An analysis of median property prices from the last 12 months to March 2025 found that properties in desirable school catchment zones can sell for hundreds of thousands of dollars more than those outside an intake area.
REIV interim CEO, Jacob Caine, said the findings are evidence that Melbourne families are prioritising education when searching for a home.
“The figures highlight the substantial impact that access to quality public education has on house values, making school zones a critical consideration for both home buyers and investors,” Caine said.
Properties around Williamstown High School in Melbourne are the most representative of the trend, with houses within the school’s catchment area recording a median sale price of $1,905,000, about $495,000 more than comparable properties located just 1 kilometre outside the enrollment zone.
Similarly, properties in the Auburn High School catchment area have seen median prices peak as high as $2,400,000, climbing $450,000 higher than those outside the school’s catchment area.
Data showed that the trend also impacted more affordable areas, with houses in the catchment area of Frankston High School reaching a median house price of $965,000, recording $160,000 higher than those outside the school zone.
Caine said that while the price difference for apartments is not as dramatic as for houses, buyers are still willing to pay more for properties near desirable schools, particularly in Melbourne’s eastern suburbs.
Units in the catchment area for East Doncaster Secondary College recorded the greatest price difference, selling for a median price of $1,032,500, which is $277,500 higher than units outside the school zone.
Caine said that units in East Doncaster have become popular, leading to heightened competition for more affordable markets near school zones in Melbourne.
“This suggests that more modest home buyers are competing fiercely for units in the area, particularly downsizers and first home buyers who prioritise school access,” he said.
However, Caine said that not all properties around schools benefit from a bidding war.
He said that houses around Dromana Secondary College are cheaper than their out-of-area counterparts just 1 kilometre away.
“The catchment area for Dromana Secondary College indicates a significant undervaluation, with the median house price within the zone being $390,000 lower (23.1 per cent) than those just 1 kilometre away, suggesting a strong opportunity for capital growth as demand catches up,” Caine said.
Caine said that all around Melbourne, investors and families can find developing school catchment areas where properties present strong opportunities for capital gain.
“Similarly, the areas around Koonung Secondary College (10.8 per cent), Braybrook College (10.2 per cent), and Montmorency Secondary College (7.7 per cent) are likely to show strong growth over the years as the schools establish their reputations and attract greater demand from families,” Caine said.
“These gaps present a compelling narrative to attract buyers and investors seeking long-term returns,” he concluded.
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