School catchment premiums quantified

School catchment premiums quantified

Posted on Wednesday, January 21 2015 at 3:08 PM

Demand for homes in close proximity to highly regarded schools is generating a five per cent value premium, according to one real estate group.

Horne have released opinion that parents are paying handsomely to secure a
good education for their children.

websites such as keep tabs on the academic results of schools.
Parents are paying premiums of up to five per cent for a home located close to
school grounds,” Angus Raine, executive chairman of Raine Horne says.

says Sydney’s North Shore is a good example of the way education helps
recession-proof a suburb.

“This area is an evergreen for sales –
almost irrespective of market conditions.

“The abundance of sought-after schools
in the area including Knox, Barker, Riverview and Pymble Ladies College,
underpins much of the strength of the North Shore market.”

The effect travels across borders to
include schools that offer not just high academic results, but specialist
curriculum, too.

Wellers Hill State School in the
Brisbane suburb of Tarragindi has introduced a bi-lingual education program
that has garnered a lot of interest from family buyers, according to Russell
Matthews of Matthews Real Estate.

“They’re asking specifically for houses
in the catchment.

“One buyer just the other day said she’d
been looking for about five months specifically in the catchment for Wellers Hill.”

Matthews says the premium will rely on
each property’s characteristics, but certainly there’s a school ‘bonus’ for

“It’d really go on a case by case basis,
but that buyer would’ve paid an extra $20,000 to $30,000, which is close to the
five per cent mark.”

Property academic Peter Koulizos says
that the premium has a ceiling.

“It’s really only families with
school-age children that would be willing to pay you extra.

“If it’s a $500,000 house normally would
they be prepared to pay $550,000? I don’t think so. Would they be prepared to
pay $520,000 to $525,000? Probably.”



Article source: