Good School Zones and Melbourne Property Prices

It is probably pretty obvious home buyers prefer properties in good school catchments. Good school zones are almost always one of the criteria our home buyer clients are looking for. This is usually reflected in the property prices and properties in good school zones typically command a premium. But how much premium are we looking at? Would a $500,000 premium surprise you?

In this article, our Glen Waverley based buyers advocates will expose the numbers and dissect the results to uncover how much more are properties in good school zones worth compared to properties outside of the zone, and identify the reasons for the premium.

Education and Properties in Melbourne

Parents in Melbourne recognise that the children's education is one of the key factors to the child's success in life. And to provide the best education to their children, parents usually do not mind paying a premium, to get the child into good schools and into good school zones if that is a non-negotiable prerequisite.

Just how much premium parents are prepared to pay, can come as a shock to home buyers though. Our Glen Waverley based buyers advocated routinely see prices of houses in Glen Waverley Secondary School Zone asking a significant premium of half a million. And this is confirmed by a recent 2025 REIV research.

This research revealed that properties in good school zones, can command up to half a million in premium. Yes, buyers are willing to pay $500,000 (or more) to get into good school zones. This pattern is not limited to only certain good schools. Properties in good school zones tend to change hands at a higher premium.

How Much More Are Parents Paying For Properties in Good School Zones?

So, let's look at this report in more detail. According to the REIV report, parents are prepared to pay as much as a 35% premium to get their children into good school zones.

School	Premium %	Premium Difference ($)	In‑zone Median ($)	Outside Median ($)
Williamstown High School	35.1	$495,000.00	$1,905,000.00	$1,410,000.00
Glen Waverley Secondary College	29.7	$481,000.00	$2,100,000.00	$1,619,000.00
Frankston High School	19.9	$160,000.00	$965,000.00	$805,000.00
Auburn High School	18.8	$450,000.00	$2,850,000.00	$2,400,000.00
Albert Park College	18.7	$287,000.00	$1,825,000.00	$1,538,000.00
Mount Waverley Secondary College	15	$209,999.00	$1,609,999.00	$1,400,000.00
Princes Hill Secondary College	14.9	$220,000.00	$1,700,000.00	$1,480,000.00
Balwyn High School	14.7	$327,000.00	$2,550,000.00	$2,223,000.00
McKinnon Secondary College	14.5	$225,000.00	$1,775,000.00	$1,550,000.00
East Doncaster Secondary College	13.4	$196,500.00	$1,667,500.00	$1,471,000.00

Table 1 - The Expensive School Zones

This translates to a $500,000 premium for popular school zones such as Williamstown High School, Glen Waverley Secondary College and Auburn High School.

Good schools is not the only characteristics of the locations. The locations of these good schools tend to offer better lifestyle, quality of the property, scarcity, location, amenities, transport, population growth, socio-economic status, etc. Using Glen Waverley as the example, in addition to regularly producing students with top VCE results, the school is ultra-strict with its zoning policy. Glen Waverley is is also considered a hub in the eastern suburbs of Melbourne with a major shopping centre, seriously good food options, and is well served by buses, trains, highways.

If you were to drive around Glen Waverley, it is not difficult to note the quality of houses. Large double storey, French provincial-style houses or designer homes are common in Glen Waverley, and especially in the school zone. It reflects the wealth and statuses of the residents. In the Chinese and Singaporean or Malaysian community, living in Glen Waverley and Balwyn is akin to living in Toorak and Bentleigh. It is a status symbol, and a proud "I've arrived" statement.

Are Academic Results the Only Factor Determining the Property Prices in Good School Zones?

While it may seem obvious that properties in good school zones are more expensive because of good academic results, the properties demanding the highest premiums are not always the best school in the list. Williamstown High School is ranked similarly to Frankston High School. While properties in Williamstown High school zone demanded a 35% premium over non-school zone properties, properties in Frankston High (similarly ranked) only has a premium of 20%. While the Secondary School that consistently is one of the better ones, Glen Waverley Secondary College commanded a lower 30% premium.

So, it begs the next question...

Are there Locations where Property Prices are actually LOWER in Good School Zones?

There definitely are... and this list from REIV shows you where property prices are actually lower in popular school zones:

School	Premium %	Premium Difference ($)	In‑zone Median ($)	Outside Median ($)
Melba Secondary College	-0.9	-$10,000.00	$1,050,000.00	$1,060,000.00
Brunswick Secondary College	-1.7	-$27,500.00	$1,600,000.00	$1,627,500.00
Doncaster Secondary College	-2.5	-$37,056.00	$1,462,944.00	$1,500,000.00
Ashwood High School	-2.9	-$49,500.00	$1,650,500.00	$1,700,000.00
Northcote High School	-3.4	-$55,000.00	$1,565,000.00	$1,620,000.00
Elwood College	-3.8	-$79,500.00	$2,020,500.00	$2,100,000.00
Blackburn High School	-4	-$56,940.00	$1,350,000.00	$1,406,940.00
St Albans Secondary College	-4.9	-$35,000.00	$680,000.00	$715,000.00
Montmorency Secondary College	-7.7	-$87,500.00	$1,050,000.00	$1,137,500.00
Braybrook College	-10.2	-$90,000.00	$790,000.00	$880,000.00
Koonung Secondary College	-10.8	-$200,000.00	$1,650,000.00	$1,850,000.00
Dromana Secondary College	-23.1	-$390,000.00	$1,300,000.00	$1,690,000.00

Table 2 - The Surprise Discounts

Why some zones underperformed

A look at properties in these school within these popular school zones suggests that some of these zones have a higher proportion of older properties, social housing, smaller in size, etc, compared to properties outside of the school zones. It is also not difficult to note some of the locations have rather colourful reputations.

Are good school zones or higher wealth / socio-economic factor a bigger influence of property values?

It is a slightly more complex question to answer. We had done a more comprehensive analysis on this, and it will take a few chapters to discuss this. Have a chat with us, if you're keen to understand.

Long story short, there is unfortunately no fool-proof answer to this. You have seen properties in good school zones being more expensive, and we had also seen properties in good school zones, being CHEAPER than properties outside of the zone. But one thing is certain. The wealthier the residents are, the more expensive the properties are, and the better the school tends to be.

So, which comes first? Good Schools? Or Wealthier residents?

Are Good School Zones Better for Investment?

Now, if parents are willing to pay a premium to live in good school zones, do properties in good school zones make better investment properties? Usually not.

Prices of properties in the school zones tend to grow at around the same rate as houses outside of the zone, provided no other factors have changed.

Using Glen Waverley as a case study, our local buyers advocates in the Glen Waverley Secondary School (GWSC) Zone, have been monitoring the property prices for the past 20 years. Properties in the Glen Waverley Secondary School zone have consistently been about 30% more expensive than properties outside the zone.

20 years ago, prices of properties in the GWSC had a median price of around $600k-700k in the school zone, while prices outside of the school zone were between $400k-600k, a similar 30% premium. Good school zones alone, does not guarantee the property will outperform other properties not in the zone.

This is probably explain why, while the seafront suburb of Frankston. While Frankston High is popular, the median house price at $965,000 is well below the Melbourne's average. The socio-economic status and median income of population around Frankston High is lower than the Melbourne average.

Are There Any Unvalued Good School Zones?

Savvy property investors will be asking if there are any undervalued properties in good school zones? Short answer is: Yes, there definitely are.

However, finding them aren't very straight forward. There are some technics you use. You'll also be paying varying degree of premiums, compared to properties not in any good school zones.

Would the Properties in the Discounted Good School Zones Outperform the rest of Melbourne?

It depends. It is possible in some locations, but quite unlikely in most other locations, if there are no significant changes to the zones.

Property prices is all about demand and supply. Rising demand in a area of shrinking supply causes prices to rise, and increasing supply in an area of weakening demand causes prices to fall. This is the basis of price rise.

Once you understand this basic principle, you'll be able to pick areas where prices are likely to grow faster. As always, it is always the early adopters who tend to benefit more from any potential growth.

Takeaways for Home Buyers and Investors

Whether you’re a home buyer, or property investor, school zoning should not be the only factor you consider. Always look at the basics. Quality of the houses, the location, and the demand and supply. can be on your radar, and possibly even part of your due diligence checklist. Only certain good school zones has a significant influence on the property value.

Final thoughts

When you buy properties, we should always look at the fundamentals: location, infrastructure, supply vs demand. While good schools can be one of those “invisible fundamentals”, it is not the only factor, and should NOT be analysed in isolation.

Buying into the GWSC, MWSC, BWSC school zones? Our flat-fee local advocates have negotiated over 50 successful in-zone deals since 2020.

Buying in a Good School Zone? - Call Us Now

If you're buying or investing in the Eastern Melbourne suburbs or one of our local areas, have a chat with us, our flat fee services can help you understand the location and buy fast, and with certainty.