No. 4/65 Hillcrest Rd, Frankston, sold for $740,000 and is close to Monash University and within the Frankston High enrolment area.
Melbourne homeowners stand to gain a huge cash bonanza worth tens — or even hundreds — of thousands of dollars when school zone changes kick in next year.
Agents are tipping an up to 15 per cent value-add for some properties, particularly households shifted within the catchment for some of the city’s most elite public schools.
Zones for more than 20 state primary and high schools will be altered as a result of school upgrades and changing demographics.
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No. 10 Emilia Chase, Mernda, sold for $893,000 and is in the Mernda Central College catchment.
Top state schools including Albert Park College, Frankston High School and McKinnon Secondary are captured in the change, which will take effect for the next school year.
Homes inside these zones attract premiums of between $100,000 to $412,500 compared to the median price of those just outside the border, according to Real Estate Institute of Victoria figures.
But the changes also mean some unlucky households currently within enrolment catchments for desirable schools will be excluded.
Experts say it’s unlikely property values would drop dramatically for these owners, but those who moved inside a zone could reap a massive reward when the time came to sell.
No. 57A Baden Powell Drive, Frankston South, is in the Frankston High zone and recently sold for $991,000.
REIV president Leah Calnan said public schools were an attractive option for parents and those suddenly rezoned into popular catchments could expect an overnight cash “windfall”.
Buyers often chose to offset the cost of taking out a bigger mortgage by saving on private school fees.
And Castran Real Estate director John Castran said the home had the added bonus of gaining further value over time, meaning the owner generally made a tidy profit when they sold.
“If you’re in the right zone, you can’t fail,” Mr Castran said.
“It’s quite simple, if you’re in one, (the home) is worth more, if you’re not, they’re worth less.”
No. 1/61 Churinga Ave, Mitcham, sold for $838,000 in August and is zoned for Vermont Secondary College.
Cayzer Real Estate director Geoff Cayzer said homes inside the Albert Park College zone drew prices up to 10 per cent higher than those outside the catchment — or about $412,500 compared to those within a 1km radius of the zone, according to the REIV data.
But while Port Melbourne and South Wharf would be excluded from the zone next year and rezoned for the new Fisherman’s Bend school, he said it was unlikely prices for homes in those suburbs would fall.
Strong demand, low interest rates and limited stock would continue to drive up prices in the area, he said.
No. 40B Windsor Ave, McKinnon, is in the McKinnon Secondary College catchment and transacted for $1.5m.
Ms Calnan said it was likely homes outside of desirable zones would continue to sell according to local market conditions.
“They don’t drop in value, they just remain at the market rate. A school zone adds a little bit more to the value depending on its location, but it doesn’t mean properties outside of that zoned area automatically decrease in value. They just meet market conditions,” she said.
Kristen Carlyle-Mackenzie of Eview Group said homes in the Frankston High zone typically drew prices 10 to 15 per cent higher, with some desperate parents searching for properties close to the school before their baby was even born.
One Agency Peninsula’s Richard Langford said it was a deal-breaker for many family buyers if a home was outside of a good primary or secondary school zone.
No. 62 Kawarren St, Balwyn North, is in the Balwyn High School zone and sold for $1.86m.
Gary Peer agent Aviv Samuel said properties in the McKinnon Secondary College catchment attracted a decent value boost, but it was difficult to predict how property values would be affected next year.
The school’s zone is set to almost double in size, meaning stock would be brought further in line with demand.
But he predicted values would take off once international borders reopened, as overseas buyers who traditionally flocked to the school due to its strong language, music and art programs, returned to the market.
REIV data that showed higher values for homes outside some public school catchments compared to those inside were likely affected by other price factors, Ms Calnan said.
This could include their position in relation to other amenities, such as major shops or transport, which may be located further away from the school.
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LIVING IN THE ZONE
Amanda Hookway is selling the family home she shares with her husband and their children Max, 14, and Grace, 10, which is in the Frankston Secondary zone. Picture: Josie Hayden
When Amanda and Simon Hookway first moved to Frankston more than a decade ago, they didn’t think about buying in the Frankston High School zone.
But when their children, Max, 14, and Grace, 10, arrived, Mrs Hookway said they suddenly made it a priority.
“We really wanted Max and Grace to go to Frankston and we were deciding whether to renovate or to move and we decided to move,” Mrs Hookway said.
“(Max) likes it there, he gets to study all the subjects he likes and his friends went there. “They take less and less kids from outside the zone every year, and we wanted to be 100 per cent certain he could get in.”
The couple have listed their four-bedroom home at 23 Pratt Ave, Frankston South, for $1.2m-$1.32m. They plan to downsize to a smaller home nearby.
Mrs Hookway said being inside the popular public school’s catchment was a great asset.
SCHOOL ZONE CHANGES 2022
PRICE DIFFERENCE FOR HOMES INSIDE THE ZONE COMPARED TO THOSE BORDERING THE ZONE (1KM)
(Data for 2+ bedroom houses, year to June 2021)
Median $ inside zone / Median $ outside zone / Difference
Gilgai Plains Primary School $580,000 no data no data
Brighton Secondary College $2.25m $1.83m $423,500
Albert Park College $2.05m $1.64m $412,500
Princes Hill Secondary College $1.61m $1.4m $215,000
Box Hill High School $1.52m $1.32m $206,000
McKinnon Secondary College $1.70m $1.5 $196,000
Prahran High School $1.9m $1.72m $172,500
Greenvale Secondary School $745,000 $605,000 $140,000
Frankston High School $850,000 $750,000 $100,000
Strathtulloh Primary School $545,000 $500,000 $45,000
(Formerly Bridge Road (Melton) Primary School)
Deanside Primary School $644,000 $616,000 $28,000
(Formerly Grasslands (Deanside) Primary School)
Mount Waverley Secondary College $1.33m $1.3m $25,000
Wollert Primary School $600,000 $580,520 $19,480
Port Melbourne Secondary College $1.66m $1.66m $5000
(Formerly Fishermans Bend Secondary School)
Clyde Creek Primary School $596,000 $595,000 $1000
Clyde Secondary College $609,900 $615,000 -$5100
Seabrook Primary School $680,000 $686,250 -$6250
Dohertys Creek P-9 College $615,000 $625,000 -$10,000
Camberwell Primary School $2.64m $2.65m -$10,544
Gladstone Park Secondary College $700,000 $745,000 -$45,000
Collingwood College $1.47m $1.57m -$100,000
Saltwater P-9 College $650,000 $803,000 -$153,000
Melbourne Girls College $1.89m $2.10m -$211,500
Source: REIV
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Public primary and secondary school zoning changes set to kick in next year will create an overnight cash “windfall” for some lucky households. See how prices differ in and outside the new zones.
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