Melbourne school zones: boom to boost house prices in new zones

Date: 30 Jun 19

A school boom could boost property prices inside new zones that are soon to be drawn across Melbourne.

Houses around the 17 schools to be opened between now and 2022 could reap in top dollar from a surge in family demand.

Properties in popular primary and secondary school catchments can secure sale prices up to $446,000 more than those just outside the zone, figures from the Real Estate Institute of Victoria show.

REIV president Robyn Waters said it was smart for buyers to break in before public schools even opened.

“Real estate within school catchment areas with particularly strong reputations is typically more expensive than real estate just outside the zone,” Ms Waters said.

“It would be a canny move for investors to look at the areas where new schools are coming, as demand for houses in the zone will increase once the schools open their doors”

Beaumaris house prices have jumped 12.6 per cent to $1.605 million in three years since Beaumaris Secondary College was announced.

The median-priced house in the catchment sells for $446,000 more than the median-priced house in the 1km radius around it.

There’s also a $136,000 gulf between houses in and out of McKinnon Secondary College zone, where a new high-rise campus has been announced.

South Melbourne Primary School, the city’s first high-rise school, also brought an influx of families to the inner-city. The suburb’s median house price defied the downturn to increase 4.4 per cent to $1,467,500 since building began in 2016.

Buxton Port Phillip agent James Nicolaou said the sales and rental market had been boosted by families moving into the area for the first time.

Inner-city enrolments have almost doubled in the past decade to more than 10,000 and three more high-rise schools in Fitzroy North, Port Melbourne and Docklands are on the way.

A new primary school will be built at the Woodlea Estate in Aintree.

Residents Jono and Katie Ingram, whose daughters attend Rockbank Primary, said the suburb’s population had tripled since they moved in 18 months ago.

“Rockbank Primary is a great little school that has a country feel but population growth in the developments around here means there needs to be more schools, including secondary,” Mr Ingram said.

Bacchus Marsh Grammar principal Andrew Neal said his school was already looking to buy more land at its Woodlea Estate campus after opening this year.

In the past year, Aintree’s median house price has jumped 4.4 per cent to $610,000, according to CoreLogic.

Schools are set to open in other growth corridors including Truganina, Mickleham, Greenvale, Clyde North and Pakenham.

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