While Bukit Timah is popular with many good schools. We should talk about how the good schools co-relate to the properties value especially when new condos like Mayfair Gardens and Mayfair Modern reside in the Bukit Timah Area.
According to the rules used in assigning places to schools, children who reside in a 1km radius from the school get the priority followed by those who live between 1km and 2km from the school. Where the children staying between the 1km and 2 km boundary exceed the available spaces, balloting is done to assign places.
A research study that tested how that distance-based school allocation rules influence home buying decisions. In the study, the researchers used 16 primary schools and the past relocation events that occurred between 1999 and 2009 in Singapore to find out the impacts of school relocation on housing prices.
The findings indicated that school relocation triggered substantial price declines of 2.9% for private non-landed houses situated within 1 km radius of the old school as compared to homes situated outside the 2 km radius, in the 6 months before the real move.
More significant price reduction of 5.5% and 6.9% for loss of a school was observed in houses situated 1km and 1 – 2 km away from the school location in 12 months before the relocation commenced.
The results from the public housing market also indicate that school relocations triggered significant although smaller losses ranging between 0.7% and 1.4% for house prices found within the 1km radius.
Additionally, the impacts were more substantial in areas affected by the relocation of prestigious primary schools appearing in the top 50 ranking, with respect to academic performance and the excess subscription rate in the prioritization based on the proximity of the primary school from a child’s home.
The private housing market registered house prices reduction by 8.5% and 12.2 % from 1km and 1 – 2 km school zones respectively following the loss of a top-ranked school.
On the other hands, public housing priced showed a price decline of 5.1% and 2.4% for the 1km and 1 – 2 km radius from the old school respectively.
The findings indicate that the prioritization rule in the 1km radius from the school is more pertinent in the private housing market as compared to the public housing market.
A test on the effect of a school relocation on house price in the new school location shows that the re-sittings amplified the private housing and HDB prices in the new school zone6 months after the relocation.
The results from the study attest that homes situated within the 2km radius from top-ranking primary schools attract larger price premiums.
So the conclusion is that buying a home where good schools are located will breed a good and healthy value appreciation in the long run as there are demand for such criteria!