When deciding on a property to invest in, there are many aspects to both the property itself and the surrounding area that are taken into consideration. One that is talked about but is far too often given nowhere near enough importance is the property’s proximity to schools, and in particular, good schools. This is the case the world over, but is especially so in Singapore.
Studies show that the value of a property can increase by more than 12% when it is near a highly ranked school. That is on a par if not more of a difference than is seen with the proximity to an MRT, but it rarely receives as much consideration.
In most cities and countries there are regulations in place regarding the allocation of school places to children living within a specified distance, when availability is exceeded by demand. In Singapore for example primary school places are decided on a ballot where priority is given to those living within a 1km radius, then a 2km radius. Other measures are also taken into consideration, for example Singaporeans have priority followed by PR’s, and those with siblings in the school also have an advantage. More often than not though, it is the distance the child lives from the school gates that is the overriding factor. New regulations introduced in May 2015 stated that the child must live in that address for at least 30 months from the date of the registration process, closing a potential loophole where families could rent a room nearby before moving away once the place is secured.
Though this only applies to primary schools, there is still very much an advantage for a child to be living near the secondary school they attend. Not only is the journey to and from school easier and quicker, it means that there is a greater chance that they will be living near – and hence the greater chance of bonding that that offers – to their fellow pupils.
Another aspect to take into consideration is international schools. Expats with families will be looking to live near an international school, mainly for the reasons mentioned above – the ease of getting to and from school and the likelihood that the child will be living near their schoolmates. International schools are often located in different areas than local ones.
When buying a property for investment you need to look at what type of person is most likely to be buying/renting it. Are they likely to have a family, will they be local or expats? Once you have this information, you can then start to look at places through the eyes of the perspective tenants or owners as opposed to those of a landlord. The education of their children, is the singularly most important consideration for families, so to ignore that when choosing a property is naïve and will mean you lose out on opportunities and revenue.
If the answer to the question above is that the people likely to be interested in your property will not have children then it is probably not worth the extra money – for you or for them – to go for a property near to a school and you can concentrate instead on factors that they would value.
New Launch Condos that are within 1km from the top primary schools in Singapore