The Australian real estate market is known for its diverse range of properties, from coastal homes to metropolitan apartments.
One key factor often emerges for prospective home buyers as a top priority: the quality of schools and education in the area.
In this article, we will delve into how the quality of schools affects real estate prices in Australia.
This information is not only valuable for home buyers but also for real estate professionals and investors looking to make informed decisions in a competitive market.
Evaluating Schools with Public Data
To assess school quality—and understand how it can influence real estate decisions—we first need a consistent, reliable way to measure educational performance.
In Australia, a range of publicly available education datasets and school-reported metrics provide useful signals, including academic outcomes, student demographics, and school resources. Together, these inputs help build a clearer picture of how schools are performing and what the learning environment looks like.
Rather than relying on any single metric, we combine multiple indicators into a composite score to create a more balanced view of school quality in a given area. By integrating factors such as academic achievement, cohort characteristics, and available resources, this approach provides a more holistic understanding than any one data point on its own.
You no longer need to scour countless websites to compare education options across suburbs, it’s all available in our new heatmap.
And the best part? You can edit and interact with it directly.
Have a particular school in mind? Simply find it on the heatmap to see how it ranks and compare it with other schools nearby.
School Quality & House Price Growth
Several studies have demonstrated a strong correlation between high-quality schools have on local property values.
Research has consistently shown that properties located within the catchment areas of high-performing schools tend to command higher prices compared to those in areas with lower-performing schools.
The reason behind this is that many home buyers prioritise quality education for their children and are willing to pay a premium for access to top schools.
This increased demand for homes in areas with high-quality schools often leads to higher property values and a more competitive real estate market.
In Australia, several examples demonstrate the link between school quality and real estate prices.
For instance, suburbs with top-performing schools in major cities such as Sydney, Melbourne, and Brisbane often experience higher property values than their counterparts with lower-ranked schools.
This trend is also evident in regional towns and smaller cities, where high-quality schools can act as a significant draw for families and contribute to increased demand for local properties.
Real estate agents often highlight the school catchment zones and the performance of local schools in their marketing materials, further emphasizing the importance of school quality in the decision-making process for home buyers.
| Council Area | Avg. School Ranking 🏆 | 10Y Capital Growth – Houses | 10Y Capital Growth – Units |
| North Sydney, NSW | 80 | 84.20% | 80.14% |
| Subiaco, WA | 80 | 60.60% | 3.86% |
| Woollahra, NSW | 77 | 72.00% | 62.72% |
| Willoughby, NSW | 76 | 136.31% | 72.30% |
| Boroondara, VIC | 75 | 76.86% | 16.35% |
| Burnside, SA | 75 | 87.51% | 50.85% |
| Claremont, WA | 75 | 44.00% | 11.37% |
| Ku-Ring-Gai, NSW | 75 | 122.42% | 66.23% |
| Mosman, NSW | 75 | 81.61% | 97.91% |
| Perth, WA | 75 | 38.17% | -18.58% |
Table: 10 LGAs with the highest HtAG School Ranking
The table above showcases property price growth for top ranking LGAs in terms of school score Australia-wide.
As you can see many highly ranked areas experience significant price growth over the last 10 years, however there is no one “hard and fast” rule that establishes a direct relationship between school quality and price growth.
For example Willoughby LGA has the highest growth, but is ranked 4th.
In addition it is also clear that the high rank of schools within LGA is more impactful on house prices and not so much on prices for units.
In fact, Perth LGA is in the top 10 of highest ranked schools country-wide, but shows negative capital growth for units on a 10 year time scale.
There is a clear connection between education quality and real estate prices, with high-performing schools serving as catalysts for increased property values in their surrounding suburbs, however it varies between houses and units.
SchoolRank Australia
Introducing our digital product: an Excel file that ranks Australian schools using comprehensive, publicly available data. The true value of this report lies in its ability to assist property investors. Government schools with higher rankings serve as key indicators of affluence within the suburb they are located. ⚠️ This report has been discontinued This report…
Out of stock
Challenges and Limitations of Public School Data
While publicly available school data can offer useful insights into education quality — and its potential relationship with property prices — it’s important to recognise the limitations of relying on published metrics alone.
First, standardised performance indicators capture only part of what makes a school “good.” Academic outcomes and resourcing matter, but they don’t fully reflect factors like teacher quality, student wellbeing, extracurricular opportunities, learning support, leadership, and overall school culture.
Second, interpreting education data can be time-consuming and confusing, particularly for homebuyers who don’t have deep familiarity with the school system. Data can also be incomplete, inconsistent across sources, or reported in ways that make direct comparisons difficult.
To address this, HtAG Analytics brings multiple public inputs together into a single, composite school ranking score. The score considers educational performance alongside the broader context of the school community—helping provide a more balanced and practical view for decision-making.
School quality (especially for local government schools) can materially influence buyer demand and, in turn, property prices. Families often prioritise access to strong local public options, which can make certain neighbourhoods more desirable. Reflecting this, our model places additional emphasis on government schools to better capture how school reputation and local market dynamics tend to interact, supporting more reliable property-market insights and projections.
Balance School Quality with Other Factors
While school quality is undeniably an important factor in real estate decision-making, it is crucial to consider it in conjunction with other aspects of the local property market.
Evaluating school rankings should not be done in isolation, as supply and demand dynamics in the local real estate market also play a significant role in determining property values and investment potential.
When assessing the impact of school quality on real estate prices, it’s essential to take into account neighbourhood demographics and other relevant factors, such as local amenities, transportation options, and employment opportunities.
These elements can also have a considerable influence on property values and the overall attractiveness of an area for potential buyers.
Image: House Price Growth vs School Rank
As we can see there is a positive linear relationship between school rank and long-term house price growth.
However it is not significant enough to be a sole decision making factor when deciding on areas to invest in.
In addition all areas with the school rank above 57 have experienced positive house price growth in the past 10 years.
Understanding the current state of supply and demand in the local real estate market is crucial for making informed decisions.
High-quality schools may drive demand for properties in certain areas, and if there is a limited supply of homes available, this could lead to rapid price increases and a highly competitive market.
On the other hand, areas with ample housing supply and lower demand may experience more modest price growth, even in the presence of top-performing schools.
Therefore, it is essential to balance school quality with an understanding of the local market conditions to make well-informed decisions.
Take a Holistic Approach to Suburb Research
Ultimately, the key to successful real estate decision-making lies in adopting a holistic approach that considers multiple factors, including school quality, neighbourhood characteristics, and market dynamics.
By utilizing the public school data to create composite scores, we can gain a more comprehensive understanding of a school’s overall performance and its influence on local property values.
While school rankings and quality play a significant role in influencing real estate prices, it is vital to consider them alongside other factors that contribute to the overall value and desirability of a property.
The Relative Composite Score is a metric that addresses this need, combining school rankings with over 80 other metrics to provide a comprehensive assessment of the local real estate market.
By leveraging the HtAG School Rank along with the Relative Composite Score, home buyers, investors, and real estate professionals can navigate the complexities of the market and make strategic choices that align with their goals and priorities.
HtAG Average School Rank (per LGA or Suburb) is available in downloadable Market Insights reports.
Check out this short video to learn how to change the heatmap to show the data in the way you like best. After you’ve done that, you can save it as a picture and share it with others.