Top Melbourne public school zones hit $1.7m barrier

2 weeks ago 17

Melbourne families chasing top public schools are facing a $1.7m barrier in sought-after catchments, with affordable houses now limited to just two secondary school-zone suburbs.

Melbourne families are being locked out of the city’s top public school zones, with affordable houses having vanished from every top-ranked primary catchment.

PRD Real Estate analysis has also found only Seabrook and Point Cook remained below the Greater Melbourne benchmark for families trying to buy a house in a top public secondary school zone.
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Meanwhile buyers in Glen Waverley and Mt Waverley generally need $1.5m to $1.7m to access the region’s highly regarded educators.

PRD Real Estate classed areas as affordable where their median house or unit price was below the Greater Melbourne median.

Parts of Seabrook and Point Cook were the only spots where median house prices of $776,500 and $823,500 respectively still provided affordable access to sought-after Alamanda K-9 College.

PRD Real Estate chief economist Dr Asti Mardiasmo said units had become the most realistic pathway for many Melbourne families trying to access top public school zones.

Glen Waverley Secondary College is among the top public school zones where PRD Real Estate found no affordable house or unit options under the Greater Melbourne benchmark. Picture: Facebook

Schools where PRD Real Estate found no affordable house or unit options included Glen Waverley Secondary College, Highvale Secondary College, Mt Waverley Secondary College, Balwyn Primary School and Serpell Primary School.

Even unit affordability is tightening, with only five primary school catchments and 11 secondary school areas offering median unit prices below the Melbourne benchmark while still providing access to top public schools.

PRD Real Estate chief economist Dr Asti Mardiasmo said the data showed the traditional family house had become increasingly detached from access to Melbourne’s most sought-after public schools.

Alamanda K-9 College is linked to Melbourne’s last affordable house options in top secondary school zones, with Seabrook and Point Cook still below the benchmark. Picture: Supplied

“If your goal is to secure a place for your child in a top 10 public school, the reality is increasingly clear: your best chance is likely through purchasing a unit within the catchment,” Dr Mardiasmo said.

The PRD chief economist said buyers still determined to purchase a house in a top school’s catchment would need to expand their budgets significantly.

“If your priority is a house, you are now forced to pay a premium, often above Melbourne’s median house price, to access these top-performing public schools,” Dr Mardiasmo said.

“Units remain an option, but if your preference is firmly a house, then something has to give.”

Ray White Mount Waverley agent Jacob Biviano said families targeting Glen Waverley, Mount Waverley and Highvale school zones generally needed $1.5m to $1.7m just to compete. Picture: Ray White Media

Units and townhouses are becoming the main way into Melbourne’s top public school zones as affordable houses disappear and families compromise on space. Picture: Jason Edwards

Ray White Mt Waverley’s Jacob Biviano said buyers targeting Highvale Secondary College, Glen Waverley and Mt Waverley Secondary Colleges generally needed about $1.5m to $1.7m to have a chance at buying.

“The more central areas, particularly those closer to train stations, can be much higher,” Mr Biviano said.

“In some cases, the land value alone can be around $2m or more.”

The agent said buyers could still technically enter some school-zone markets, but the goalposts had shifted as budgets tightened and supply thinned.

Melbourne auction buyers are still competing strongly for homes in prized school zones, where families are paying premiums for access to top public education. Picture: Instagram/ Jacob Biviano

“Someone who may have had a $1.7m budget before might now be working with $1.5m, so they are still in the conversation, but only for certain properties, in certain pockets,” he said.

Mr Biviano said families were still reluctant to compromise on the number of bedrooms they needed, but were giving ground on bathrooms, garage space and land size.

“The biggest compromise we are seeing is buyers accepting a townhouse instead of a freestanding house,” he said.

The agent added that Glen Waverley and Mt Waverley home values were still holding up despite broader market pressure because of their school zones, public transport, family-friendly streets and strong local amenity.

Jacob Caine from Caine Real Estate, REIV President - for herald sun real estate

REIA president Jacob Caine said homes in highly regarded school catchments could attract a $300,000 premium as families weigh property prices against private school fees. Picture: REIA

Real Estate Institute of Australia president Jacob Caine said suburbs with highly regarded government schools had become some of Victoria’s most tightly held markets.
“Families from Victoria, interstate and overseas are targeting these areas because they offer access to high-quality public education without the often prohibitive cost of private schooling,” Mr Caine said.

He added that REIA research had previously shown homes within highly regarded school catchments could attract a premium of about $300,000 compared with similar homes outside those zones.

Mr Caine said families were weighing that against private school fees, which could easily exceed $500,000 over the course of a child’s education.

“It’s no longer a simple property decision, it’s a trade-off between lifestyle, financial capacity and long-term opportunity for their children,” he said.

Mr Biviano said buyers could still technically enter some school-zone markets, but the goalposts had shifted as budgets tightened and supply thinned.

“Someone who may have had a $1.7m budget before might now be working with $1.5m, so they are still in the conversation, but only for certain properties, in certain pockets,” he said.