As millions of Australian children head back to school, Raine & Horne property experts are reporting intense competition among families seeking to buy a home in the catchment zones of sought-after selective and non-selective public schools.

This is being driven in part by the rising private school fees.

Futurity Investment reports that 13 years of independent school education now costs an average of $369,594 nationally, a figure that rises to $435,902 in Melbourne, Australia’s most expensive location for independent schools[1].

Angus Raine, Executive Chairman of Raine & Horne, said, “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.

“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[2], 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, Tim Boyan, Director Raine & Horne Lindfield, said, “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.

“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,” added Tim.

While highly regarded public schools are a driving force behind the Upper North Shore’s $3-4 million median property prices, Mr Boyan notes that the area’s popular private schools including Knox, Barker, Abbotsleigh and Pymble Ladies’ College, also support high values across the upper segment of the market.

“Families who opt for a private school education often buy a home close to the school of their choice. 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,” said Mr Boyan.  

Price premiums don’t solely hinge on a school’s academic reputation.

Con Pappas, Principal Raine & Horne Unley, Adelaide, said, “Pricing of properties can also reflect the nature of local schools – and this can be driven by immigration patterns.

“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.”

In addition, James Trimble, Sales Agent at Raine & Horne Unley, Adelaide, notes that many families are being priced out of the private education sector.

“We are now seeing some of Adelaide’s elite private schools, such as Pembroke, charge annual fees as high as $35,000[3]. This is changing the dynamic of where families can afford to send their children to school,” said James.

“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 NSW Central Coast, Geoff Tilden, Principal of Raine & Horne Gosford | East Gosford, said his 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,” said Geoff.

Families are urged to start their property journey now

As competition for places at reputable schools intensifies, homeowners in catchment areas stand to benefit from strong property values.

Tim Boyan said, “The start of the academic year typically sees a lift in school-oriented buyers, and vendors in areas such as Killara and Pymble are well placed to capitalise on this demand.”

James Trimble notes that public schools often face capacity constraints, which place a firm limit on the number of students a school can enrol.

“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,” concluded James. 

Sellers and buyers are encouraged to speak with their local Raine & Horne sales agent for tailored advice about how school catchments are influencing demand, pricing and timing in their local real estate market.

[1] https://www.futurityinvest.com.au/financial-advisers/financial-adviser-news/financial-adviser-blog/2026/01/14/the-cost-of-education-in-australia-2026

[2] https://www.cotality.com/au/insights/articles/2025-delivers-strong-housing-gains-but-2026-set-for-a-softer-landing-as-rate-fears-and-affordability-bite

[3] https://www.adelaidenow.com.au/education/regions/south-australia/pulteney-grammar-hikes-year-12-school-fees-to-more-than-33000/news-story/9928d4d59846d348a9fe8140abc61ff9