Why property prices surge in top school catchments
We all know that location really does play a large part in the potential capital growth of a property; however, buying property within top school catchment zones can significantly impact property prices.
According to Domain’s Annual School Zones Report for 2016, the capital growth of properties situated within school catchment zones of Australia’s top public schools is increasing at up to five times the city average.
Domain’s chief data scientist, Dr Nicola Powell, stated that property price growth in close proximity of top schools was far higher than the average growth rate of the city.
“Nationally, the top 10 growth rates around particular schools were up between 18-41 per cent in 2016," she said.
"To put this into perspective, in the same period, Sydney house price growth was around 1.5 per cent, and Melbourne, around 7.3 per cent."
Domain’s Annual School Zones Report for 2016 saw that Victorian schools dominated the national top 10 lists, with Glen Huntly Primary School taking number one spot with a catchment property sales price growth of 41.30% over the past 12 months, whilst Glenferrie Primary School and Kerrimuir Primary School ranked third and fourth with a 35.00% and 34.40% respectively.
Queensland’s Logan Reserve State School came in at position 2 with a 40.00% price growth and the median property price here has grown from $426,799 to $597,500.
Interestingly, school catchment zones have a greater impact on property prices than the actual suburb, even though house price growth is generally based on cities and suburbs. And if you buy a property within a desirable school zone, then property prices can even grow by approximately 10-15%.
Even in Brisbane, more families who have traditionally lived in the middle ring and outer ring suburbs of Brisbane are now moving to the Inner Brisbane area, where the top schools are situated. The Inner Brisbane area also offers greater lifestyle amenities which people today are seeking more of. There is an attraction to be closer to all the action, closer to work, transport hub and excellent education institutions.
Buyers moving for education purposes
Other reasons why people generally move is because they want to live in a newer property, they are downsizing and require something smaller, whilst living closer to work is also a major drawcard.
But, it’s not just school catchment areas that are important to consider when buying property. The lifestyle amenities as well as infrastructure and transport are key to choosing a good property. People today are looking for a higher quality overall; from a higher quality design, a high quality location as well as a high quality lifestyle.
Lifestyle amenities are also important
It is important that when you buy a property, whether as an owner occupier or investor that you keep the future buyer in mind, which is generally the owner occupier. Today, owner occupiers want a good quality property to live in, and with apartment living becoming the norm, this is becoming even more important. We want apartments that are spacious in size, high quality fittings and fixtures, internal amenities such as swimming pools and gyms, whilst have all the lifestyle amenities on your doorstep including access to high quality schools, excellent transport and retail and dining.
So even though buying a property in a top school catchment area can see property prices significantly increase in value, as a buyer you also need to consider all the facts and look at the larger picture to understand what else is close by to make this property attractive to owner occupiers and rental tenants.
To find out more about what properties are currently available to buy and what lifestyle amenities and schools are situated close by, why not speak to one of the iBuyNew Property Consultants. Our staff are polite and friendly and can pinpoint which suburbs make an attractive investment.
Give us a call today on 1300 123 463 to find out more.
Published on 9th of February 2017 by Marty Stanowich