Demand for top public schools fuels price premiums in select suburbs
As the new school year begins, agents at Raine & Horne report strong demand from families seeking homes in the catchment areas of high-performing public schools, both selective and non-selective, across Australia.
The trend is being linked in part to escalating private school charges. Futurity Investment estimates that 13 years of independent schooling now costs an average of $369,594 nationwide, increasing to $435,902 in Melbourne, the country’s most expensive city for independent schools.
“Faced with surging education costs, particularly across the independent sector, many parents are using websites such as myschool.com.au to identify public schools with a strong academic track record,” said Angus Raine, executive chairman at Raine & Horne. “Evidence across the Raine & Horne network shows these families are often prepared to pay a price premium of 5% or more, to secure a property in the catchment zone of their preferred public school.
“Based on today’s national median property price of $901,257, that 5% premium can add $45,000 to the cost of a property, relative to those that may be only a street away but outside the school’s catchment zone.”
In Sydney’s upper north shore, demand is focused on suburbs feeding into high-ranking schools. “Highly regarded public schools such as Killara High School and Pymble Public School continue to influence buyer demand, largely due to their strong academic rankings,” said Tim Boyan, director at Raine & Horne Lindfield.
“Exactly how much of a premium families will pay to buy in the catchment zones of these schools depends on the property, street and broader market conditions. However, the price premium can be many tens of thousands of dollars.”
Private schools are also shaping residential patterns. “Families who opt for a private school education often buy a home close to the school of their choice,” Boyan said. “This adds to buyer demand and higher prices. So, the preparedness of parents to pay more to be near a particular school is not limited to those who select the public school system.”
In Adelaide, demand reflects both education quality and migration trends. “As a guide, in Adelaide, Morialta Secondary College in Rostrevor, Glenunga International High School and Unley High are all popular with families who are recent arrivals to Australia because they have learning programs that cater specifically to the needs of their children,” said Con Pappas, principal at Raine & Horne Unley.
Affordability pressures in the private sector are also affecting decisions. “We are now seeing some of Adelaide’s elite private schools, such as Pembroke, charge annual fees as high as $35,000l,” said James Trimble, sales agent at Raine & Horne Unley. “This is changing the dynamic of where families can afford to send their children to school.
“Many South Australian families are weighing up whether to spend half a million dollars educating their children in the private system versus paying more for a home near a sought-after public school. The latter strategy can mean paying next to nothing in school fees while enjoying a strong return on their home’s value if they choose to sell in the future.”
On the New South Wales Central Coast, education infrastructure is supporting local values. Geoff Tilden, principal of Raine & Horne Gosford and East Gosford, said the region is fast becoming an education hub following completion of the new University of Newcastle campus, which will open for students in 2026. “While some buyers mention the selective Gosford High School, most are increasingly looking at the bigger picture, and Gosford’s expanding education infrastructure is seen as a long-term value driver.”
Raine & Horne agents also noted that competition is likely to intensify as the academic year commences, with vendors in sought-after catchments positioned to benefit from elevated demand.
Families are urged to start their property journey now as public schools often face capacity constraints. “School offers come out in August each year, so families need to start their buying journey today to be sure they are on the enrolment list for their preferred school in 2027,” Trimble said.
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