School Zones Drive Housing Premiums in Sydney and Melbourne, Sparking Inequality Concerns
August 21, 2026
Across several Sydney and Melbourne catchments, median home values inside high‑school zones exceed those just outside, showing buyers pay a premium for access to specific schools.
Cotality researchers say the premium reflects broader livability factors beyond the school itself, including transit access, proximity to the CBD, and nearby parks.
A Cotality analysis up to mid‑2026 shows families paying a premium to live within state high school catchment zones in Sydney.
Tim Lawless cautions that catchment boundaries can change, so zones are not a guaranteed long‑term driver of price growth.
Not all top‑performing zones yield large premiums; for example, Balwyn High School’s catchment shows a relatively modest 4.2% premium, indicating other factors at play.
Even where private schooling is common, families value convenient transport and school access, including bus routes for high‑school students.
High‑ranking non‑selective NSW state schools like Rose Bay Secondary College, Epping Boys High School, and Killara High School are driving demand.
Melbourne families’ moves back to the city underscore the weight of school zones, particularly Princes Hill Secondary College, in housing decisions.
Primary‑school catchment proximity also matters, with examples like paying a substantial premium to live near Boronia Park Public School.
Rising premiums tied to school zones risk entrenching inequality, prompting calls for more equitable access to high‑performing schools.
Many families base decisions on school communities, often pairing school access with lifestyle factors like waterfront living.
Real estate agents report growing emphasis on school zones in negotiations and marketing, correlating with higher turnover and demand.
Summary based on 2 sources
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Sources

The Sydney Morning Herald • Aug 21, 2026
The property premium Sydney families are paying for the right state school
The Age • Aug 21, 2026
How much it costs to live in Melbourne’s most desired school zones