Balwyn’s school zone continues to draw Asian buyers
Asian buyers continue to buy into Melbourne’s eastern suburbs – in particular the suburb of Balwyn – for the sake of their children’s education.
It is that fundamental desire that makes a suburb like Balwyn so attractive to this core buying constituency.
Balwyn – a picturesque suburb located 10 kilometres east of the CBD – is home to 2,861 residents of Chinese descent, out of a population of 12,944, according to the 2011 census.
The median house price is $1,280,000, and there is ample public transport infrastructure, particularly trams.
Jellis Craig Balwyn director Richard James says the majority of Chinese buyers purchase in high school zones and close to public transport routes that will take their children safely to school.
Balwyn is located in the Whitehorse school zone.
Living within a particular school zone means a place is reserved for you at schools within that zone.
Children may attend schools outside of the school zone they live in, but it depends on the number of vacancies available.
James says Chinese buyers generally buy new properties or properties that have been significantly renovated.
The suburb offers Balwyn High School, but close by are a dozen other secondary schools, including Box Hill High and Canterbury Girls School.
James says Balwyn has developed a large Chinese community and is viewed as a safe place to live.
"People coming from another country feel very safe," he says.
"Balwyn is a very family-orientated location and gets a lot of recommendation from friends and family."
James mostly sells to those with permanent residency, but occasionally sells to people with temporary status or offshore buyers, who are subject to approval by the Foreign Investment Review Board (FIRB).
Balwyn agents say school zoning influences are as important as ever, with Tom Ryan from Jellis Craig Balwyn saying the agency always has buyers wanting to buy in the zone due to the quality of education offered to their children, and the associated price is extremely reasonable.
That’s despite the price rise, especially around 2007, when property commentator Mark Armstrong noted that the price point was pushing some buyers towards Mount Waverley and Glen Waverley.
“You will always get some people who simply cannot afford the Balwyn High zone," says Ryan.
"That situation has not changed over the last 10 years but the amount of people wanting the Balwyn area is always very solid.”
"As long as the school maintains its reputation the sales will continue to flourish, regardless of the prices," says Ryan.
A three-bedroom, one-bathroom home on Tonkin Avenue (pictured below) sold on March 2 for $1,252,000.
Located within the Balwyn High School zone, it was the first time the home was offered in over 30 years.
Situated on 694 square metres, the sale was closed by Steve Chharia from Allens Real Estate DONCASTER EAST.
On the higher end of the spectrum, a four-bedroom, three-bathroom home (pictured below) sold in the suburb last week for $1,825,000.
Located only seconds from the Whitehorse Road tram and situated on 752 square metres, the sale was closed by Noel Jones Balwyn.
A two-bedroom, one-bathroom unit on Henry Street sold on March 2 for $912,000.
The unit boasts a secure gated entry, two alfresco courtyards and is located within the Balwyn High School zone.
Marshall White Armadale closed the sale.
Balwyn has had a steady start to the year with a clearance rate of 69% from 29 auctions and Balwyn North has a clearance rate of 73% from 22 auctions.
REIV's policy and public affairs manager Robert Larocca says these rates are spot-on the Melbourne average at the moment of 70%, but it is too soon to draw comparisons.
The average household size in Balwyn is three persons, and family households account for about 70% of the population, according to RP Data.
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