Buying in a “good school zone” has always been a property feature that some potential buyers consider when purchasing their first home, usually their family home, especially when living in the city. A recent report by the New Zealand Herald has suggested that a change to schooling zones is expected to drive house prices up even further than their current record-setting points. But what is there any real value to purchasing a house in a popular school zone, and what exactly makes them have such a significant effect on house prices?
School enrolment zones are put in place to prevent overcrowding, so when purchasing homes, many people with children, or plans to have children usually buy within a zone, and near the school. Properties in school zones tend to have higher prices, especially if they are near sought-after schools, or in more than one school zone. Homes.co.nz reported that Auckland premiums can reach up to ninety percent when in certain school zones, the report revealed that Epsom Girls’ Grammar’s zone in Auckland, adds the greatest premium at 90.5 per cent to local house prices.
With an increase in population in Auckland causing a greater influx of students into schools, it was announced that further school zone restrictions are coming into place this year and Real Estate Institute of New Zealand has predicted that the restrictions will increase house prices further. Data showed that other popular zones include Rangitoto College with an increase of 35.2 per cent to $1,320,000 in three years, and Western Springs College zone had increased by 30.2 per cent. These zones are close to the central business district and the inner suburbs that surround the city have higher premiums, the more “sought after” schools have a greater influence on the overall price as well.
So when purchasing property, it is crucial to consider if school zones are important to you, whether you have kids, or are planning to have kids, researching which zones are in your potential suburbs will pay off in the long run. For investment property buyers It can be a useful draw to buy property in sought after zones, which can factor into growing the overall price as the population and restrictions grow.
It can be worth doing your research as well as talking to property experts about school zones early on when purchasing potential property, as it is one of the factors that cant be changed once purchased.