School zones and their impact on property prices and rents are two of the most crucial things property investors and would-be buyers should know about before breaking into a particular housing market, says an expert.
Emma Slape, CEO of Turner Real Estate, said school zones affect how markets will perform under certain market conditions.
"For owners of properties in these zones, it offers a real point of difference if the property falls in a hot spot and we immediately notice that the interest in the property spikes when they hit the market," she said.
In South Australia, for instance, the most popular schools also sit within the higher-priced suburbs. Some of these schools include Glenunga International High School, Marryatville High School, Adelaide High School, Norwood Morialta High School, and Unley High School. Slape said most buyers and renters typically consider these schools when looking for a home in South Australia.
"For instance, if you have a family with three children about to enter schooling, the parents will no doubt be weighing up where they want to live and the cost of a private or public education," she said.
A report from the Real Estate Institute of Victoria further solidifies this claim. In fact, Melbourne homes in coveted school catchments can sell up for up to $600,000 more, the report shows.
This makes school zones a vital consideration, particularly for investors. Slape believes that school zones affect the demand for a particular suburb.
"The bottom line is property prices, for both sales and rentals, are always set by supply and demand. So quality applications, coupled with a strong rental rate per week, are always favoured," she said.
Slape said it is essential for some families to weigh the costs of private or public education when looking for their new home.
"Some will make a choice to invest more in the property and secure a desirable school zone, rather than pay private school fee," she said. "Certainly, there are some excellent schools, both public and private, in Adelaide, so if the public school looks to suit the student, this will be a factor in the buyer's final offer to purchase."
