A new report from Cotality has confirmed what many families in Sydney and Melbourne already know: buying into a top-performing public school catchment can come with a hefty price tag.

In some cases, households are paying up to $1.3 million more to secure a home within sought-after zones.

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The data shows that in Sydney, suburbs on the North Shore are leading the way.

Homes located within the catchments of Killara High, Willoughby Girls, and Lindfield Learning Village have median values that are nearly $1.3 million - or close to 40 percent - higher than comparable homes just outside those school boundaries.

Melbourne shows a similar pattern, though the price gap is slightly smaller.

Properties located within the school zones for Princes Hill Secondary College and University High School command a premium of up to $357,000 compared to homes beyond the catchment lines.

While that may seem like a steep upfront cost, for many families it makes long-term financial sense.

With private school fees running into the hundreds of thousands over the life of a student's education, purchasing a home in a leading public school zone is often seen as a smart alternative.

However, experts caution that a higher entry price doesn't always guarantee stronger capital growth down the line.

Still, properties in these catchments remain in high demand - as evidenced by a recent sale in North Melbourne.

A charming two-bedroom Victorian terrace at 71 Courtney Street, located within the University High School catchment, has just sold for $1,003,000.

Built in 1882, the home is part of the historic James Terrace and offers a blend of heritage character and inner-city convenience.

Zoned for both University High and North Melbourne Primary School, the cottage had been listed with a price guide of $800,000 to $850,000, but the strong interest from school-focused buyers helped drive the final sale price well above expectations.

It's a clear example of the value families place on education - and how that sentiment continues to shape buyer behaviour in tightly held suburbs.

To check which school catchment zone your property falls into, visit the School Catchment Tool at View.com.au.