Premium prices for homes closest to top schools
Category Buyer Advice
Around the world, homes in the suburbs that contain State and private schools with a reputation for excellence are always in demand and able to command better-than-average prices, and SA is no exception, says Berry Everitt, CEO of the Chas Everitt International property group.
“Examples of such areas are Kensington, Parktown and Houghton in Johannesburg; Rondebosch, Newlands and Claremont in Cape Town and Glenwood, Hillcrest and Westville in Durban, and the main reason for their unfailing popularity is the stiff competition for places in their highly-rated schools, most of which have been forced to impose strict rules about only accepting applications from learners who live in their immediate catchment areas.
“This means that if you don’t live in the right suburb, your children will most likely not be able to attend the school of your choice.”
Another reason for the high demand in these areas, he says, is the ever-rising petrol price, “which means that the cost of driving children to and from a distant school and to any extramural activities, added to the cost of commuting to work, could impact significantly on the household budget.
“This is why, if one examines the suburban buying patterns related to schools, properties within walking distance of the school are ‘ideal’ and generally attract a premium price. Thereafter, as the radius of travelling distance extends from the focal point of the school, home prices decline.
“Similarly, home prices in estates with their own schools or very close to a sought-after institution tend to be higher than those in developments where parents still have to transport their children to school.”
Meanwhile, says Everitt, certain areas have been added to the “most desirable” list and have experienced an influx of family buyers recently following the establishment of new private schools. A case in point is the Silver Lakes area to the east of Pretoria, where three new private schools have been established in the past few years. Others are the Blouberg area to the north of Cape Town and Ballito on the KZN North Coast.
“And at the top end of the market, it has become very clear that lifestyle estates that wish to attract family buyers now need to establish their own schools - perhaps in partnership with an academic brand such as Reddam or Curro - unless they are very close to an already-renowned institution.
“Thanks to technology, many people who would choose to live on an estate mostly for reasons of family security find they can now also work from home much of the time and avoid having to commute to their offices much. This makes it even more appealing to them to have good schooling as well as shops and entertainment on the doorstep.”
Author: Chas Everitt