What does the new school zone shake-up mean for Adelaide house prices?
Stronger market competition and soaring house prices could be on the cards for parents seeking to buy into the revised enrolment zone for Adelaide's two public CBD high schools, experts warn.
The State government yesterday announced it would shrink the shared enrolment zone for Adelaide High School and Adelaide Botanic High School, with property owners and renters in
Hilton, Torrenville, Kuralta Park, Glandore, Richmond, Marleston, Black Forest, Clarence Park and parts of Mile End, no longer able to enrol their children in one of the two schools from next year.
It is a move which, Real Estate Institute of South Australia CEO Greg Troughton, said would have profound impacts on Adelaide's property market – especially the 28 remaining suburbs within the now more exclusive school zone.
According to CoreLogic, suburbs in the revised 2020 CBD zone currently has a collective median house price of approximately $824,780, while units transact for around $390,136.
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"Those that remain in a zone of a highly popular school may see an extra premium – but by how much is really difficult to pin point," Mr Throughton said.
"There is evidence that shows buyers scramble for properties that sit within a popular school zone.
"What I can say is – there is a cohort of buyers that regard houses in popular school zones very highly and often are keen to pay an extra premium to secure the house and the zoned school for their children.
"Similarly there are parents that rent in an area for the same reason and often that leads to investors commanding a higher rent."
Chief economist for realestate.com.au, Nerida Conisbee said the shake-up could bring about a much needed apartment boom within the CBD.
"When schooling is important you may be limited when it comes to buying a home," she said.
"So I think we'll likely see more people move into apartments or units in bid to get their kids into the desired school.
"It's not uncommon and is a scenario we've seen in other cities, like Brisbane where apartment sales increased for the exact same reason."
Harcourts VennMillar Principal Stephen Venn said while the market would undoubtedly see a shake-up in prices, it wasn't all doom and gloom.
"There will be an increase in demand in some areas and a decrease in others, as school zones do have an impact on the property market," he said.
"It's always been that way and I doubt it will ever change.
"That said, I can't see it preventing people buying outside of these school zones. Good suburbs will always be sought-after and tend to hold their value, irrespective of school zones."
Adelaide suburbs in the revised 2020 CBD zone
(source: CoreLogic)
Median house price: $560,000
Median unit price: $415,000
Median unit price: n.a.
Collinswood
No median available as less than 10 properties sold in a 12-month period.
Everard Park
Forrestville
Hindmarsh
Median house price: $2,052,450
Medindie Gardens
Ovingham
Median house price: $1.2405 million
Thebarton
Thorngate
Median house price: $1.125 million
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