The Correlation of Property Value to its Proximity to Schools in a Digital Age

When it comes to choosing a property, the number of bedrooms and whether it has a pool might be high up on your wish-list. However, there are other factors which could be more influential than you expect.

If you find a property that you love but it’s more expensive than some of the nearby suburbs, you might want to take a look at the schools. Proximity to good-quality schools adds a premium to the value of houses, and the extent of this is continuing to rise.

Universal Price Increases
Parents want their children to go to the very best school possible, and it’s this demand which is driving up the prices of property in catchment zones. The top schools will only take pupils from a very select area, making certain streets extremely valuable.

This isn’t a passing trend; the price of property near schools has been steadily climbing for years, outperforming the rest of the market. In the last 12 months, homes in some catchment zones have rocketed by almost a third.

This phenomenon has been seen universally across all types of suburbs. Whether you’re searching in an affluent or a more affordable area, if the property is close to a good school, you’ll have to pay significantly more.

The rate of the increase varied, but in some areas the climb in property value was three times faster than the surrounding areas.

A Change in Attitudes
Some experts have noticed a change in attitudes from parents searching for the best education for their offspring. Rather than piling money into private school fees, they’re opting to invest in property instead.

By taking the money that would have been spent on school fees and buying a home in the catchment area of the very best schools, it’s a win-win scenario. The children have access to top-quality education and the property increases in value further, providing a return on the investment.

Of course, this is only good news for those who already own a property in the desired areas, or who can afford to buy. If you’re keen on purchasing you will have to swallow an inflated price – or else look elsewhere.

The good news is that this trend shows no sign of slowing down or reversing. Therefore, if you buy a new home which is close to a good school, you can expect the value to rise more than the rest of the market.

Supermarket Contribution
Although the distance to the best school is a factor which is having the biggest effect, the distance to supermarkets plays a part too.

Convenience is a factor, but it’s also about access to affordable items. Supermarkets offer the widest variety of goods at the lowest prices. And it’s not just about food; click here to see some of the cut-price school supplies on offer by Big W, as one of the many examples available. From stationery and crayons to more expensive items such as a Canon printer, it’s possible to save as much as $20 on the ticket price by being savvy with where you shop in Australia.

Little wonder perhaps that being close to a supermarket could add 9-12% onto the price of your home. It’s not as significant as being within the catchment zone of a school, but it’s another factor to consider.

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