How much do schools boost your home’s value?

Jodie Humphries 6 February 2017 NEWS

schoolPublic schools that report good results can cause an increase in the value of surrounding properties.

A new working paper from the University of Melbourne has found that property prices in areas of high-performing schools increased on average by 3.6%, the AFR has reported. When looking at house price data from before the My School website launched in 2010, there was increase of about $19,000 in Melbourne suburbs with high-performing schools, compared to a $64,000 increase since the launch.

“Sellers - in particular real estate agents - who are more likely to be aware of the school quality in the neighbourhood than buyers, have an incentive to pass on good news to their clients to increase sales price,” the University of Melbourne’s Institute of Applied Economic and Social Research noted in the paper.

The paper also looked at how having a lower-performing school in a particular area affected property prices, and found there was no equivalent effect, the AFR reported.

“It appears likely that real estate agents have no incentive to pass on bad news to the clients because it would reduce the sales price and therefore their private return through the reduced commission.”

Latest home loans headlines

Image: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site