Proximity to a good school can bump up a property’s price tag by $50,000
Media release - 21st January, 2015
- Leading property group Raine & Horne finds parents pay a premium to be near the school of their choice
- On Sydney’s North Shore, buyers shell out up to 5% more for properties located near well-regarded Roseville, Willoughby, Chatswood and Killara schools
- Properties close to academic powerhouse St George Girls High School may command up to $50,000 more than similar properties outside the college’s footprint.
- Parents pay up to 10% more to rent a property within the catchment of champion sporting pipeline Westfield Sports High
In the next two weeks, more than 1 million primary and secondary students across New South Wales will return to school.
For many parents, choosing the school that’s best for their youngster can be a difficult decision, and it can also impact where they buy a property, according to Angus Raine, Executive Chairman and CEO of Raine & Horne.
“With websites such as myschool.com.au keeping tabs on the academic results of schools, parents are paying premiums of up to 5% for a home located close to well-regarded schools.”
Evidence from the Raine & Horne property network shows many parents add ‘proximity to a good school’ to their wish list of home features.
Sydney’s North Shore, for example, boasts a glut of quality schools, and Mr Raine says, “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.”
Hugh Macfarlan, Principal of Raine & Horne Chatswood/Willoughby, says, “Many families want to buy in the North Shore – and the attraction isn’t just the well-known private schools, but also the exceptional public schools such as Roseville Public School, Willoughby Girls High School, Chatswood High School and Killara High School.”
Mr Macfarlan adds, “Parents with their mind focused on schooling will pay premiums of around 5% just to get a home in their school’s catchment area. And it’s not limited to owner occupiers – we get enquiries from tenants seeking a rental property within the catchment for particular schools.”
As competition for places in reputable schools intensifies, homeowners in catchment areas stand to reap the benefits of firmer property values.
In Sydney’s St George region, for example, Michael Pyliotis, Director of Raine & Horne Kogarah, cites St George Girls High School (SGGHS), a selective school which generates consistently high performances every year in the High School Certificate (HSC).
The leading student at SGGHS achieved a maximum Australian Tertiary Admission Rank (ATAR) of 99.95 in the 2014 HSC, closely followed by two students who achieved ATARs of 99.90.
“Places at St George Girls High are highly sought after, and we encounter many buyers who are looking to secure a home in its catchment,” says Mr Pyliotis, who has a Bachelor of Commerce degree from University of Wollongong.
“If a home is in the SGGHS catchment, it can add up to $50,000 to the market value of the property if the buyers have school-aged children.”
Along with academic reputation, many parents look for proximity to a school with a specialist focus. In Sydney’s south west, for instance, families with promising sporting champions set their sights on Westfield Sports High.
Tarek Madani, Co-Principal of Raine & Horne Fairfield, says, “Many families considering a purchase in nearby Canley Heights and Fairfield West regularly ask whether a home is in the Westfield Sports High catchment.”
With alumni including Australian cricket captain Michael Clarke, budding NFL star Jarryd Hayne, Wallaby Israel Folau and former soccer ace Harry Kewell, Westfield Sports High is popular with students chasing sporting fame.
Mr Madani says, “Owner-occupiers are often prepared to pay up to 5% more to secure a home in the Westfield High catchment, while tenants will pay a premium of up to 10% to lock in a rental.”
For further media information contact:
Angus Raine, Executive Chairman/CEO, Raine & Horne on 0409 920 697
Andrew Harrington, National Communications Manager on 02 9258 5400