Dr Nicola Powell, Chief of Research and Economics at Domain, has offers her insights into how NAPLAN results and school catchment zones shape the housing market.
She notes that the escalating costs of living and private school fees have intensified the demand for quality public education, thereby impacting property markets.
“Parents place enormous importance on their children’s schooling journey,” Dr Powell said.
“With rising living costs and escalating private school fees, there’s increased pressure on the public school system. It’s no surprise we see heightened interest in certain school zones.”
Last years’ Domain School Catchment report reported: “Sydney school catchments can play a major part in house price movement, with many buyers willing to pay a premium to ensure their children attend highly sought-after schools.
“This is evident in secondary schools, with a higher proportion of school catchments seeing positive annual growth. This trend could indicate that private school fees in a time of escalating living costs and economic uncertainty have weighed on some household budgets.”
In Sydney, annual house price growth in 46% of primary and 44% of secondary school catchments analysed surpasses the respective suburb price growth, with 88% of primary school and 95% of secondary school catchments seeing up to 10% more growth compared to the suburb they are located in.
In Brisbane, a larger proportion of primary school catchments outpaced their respective suburbs’ performance, at 54% compared to 47% of secondary schools, with around 90% of primary school and 86% of secondary school catchments have recorded up to 10% additional annual growth above their respective suburbs.
It was a similar story around the country.
“When someone starts their property journey searching by school zone, it tells us they’re serious about securing access to a particular school,” said Dr Powell.
The data backs it up and search volumes vary significantly between school zones, reflecting how keenly buyers are focused on access to top-ranked schools.
“Some catchment zones show much higher levels of search activity,” Dr Powell said.
“And we’ve observed price growth discrepancies between neighbouring school zones … sometimes quite significant.”
Why school catchments drive decisions
The obsession with school zones isn’t just about academics. Families also factor in schools’ reputations for extracurricular activities, such as music and sports. Dr Powell acknowledges that secondary school years, in particular, carry weight.
“These are formative years that shape a child’s pathway into university and beyond.”
Interestingly, Dr Powell said anecdotal evidence suggests some families go to extraordinary lengths, including renting in desirable areas, to secure a spot within certain catchments.
“It’s a highly competitive landscape, and school zones can dictate not just where people buy but also the kinds of sacrifices they’re willing to make.”
Decoding the Data
While NAPLAN rankings play a significant role in shaping perceptions of schools, Dr Powell points out that catchment zones are not straightforward.
“They can slice through streets and suburbs, making it confusing for buyers.”
For buyers navigating this intricate system, school zones serve as both a beacon and a boundary, defining the parameters of where they’re willing to live.
“It’s a pin-drop approach,” Dr Powell says. “Families often know exactly where they want to be.”
As families continue to prioritise education in their property choices, Dr Powell anticipates that the focus on school catchment zones will only grow.
“Location and budget have always been the primary drivers of property decisions, but school zones add another critical layer,” she said.
Top-Performing Government Schools
The 2024 NAPLAN results have highlighted several government primary schools that have delivered exceptional performances:
- New South Wales: Oakhill Drive Public School in Castle Hill ranked 16th among Year 5 students, outperforming many selective and elite private schools.
- Victoria: Oakleigh South Primary and Serpell Primary School outperformed many high-fee grammar schools, delivering high-quality education at a lower cost.
- Queensland: Sunnybank Hills State School secured the top primary spot, reflecting strong academic performance.
- South Australia: Richmond Public School one of the highest performing government schools in the state.
The correlation between high-performing school zones and property demand underscores the importance of educational quality in real estate decisions. Families are increasingly prioritising access to esteemed public schools, influencing property values and market dynamics.
