Good school zones boost house value

Auckland City Harbour News - - SITUATIONS VACANT - SUSAN EDMUNDS

Buy­ers must pay price pre­mi­ums of up to 90 per cent to get into the best school zones, new data shows.

Homes.co.nz has re­vealed that good school zones add sig­nif­i­cantly to the price that houses com­mand, in many ci­ties around the coun­try.

The big­gest dif­fer­ence is for Ep­som Girls’ Gram­mar’s zone in Auckland, which adds a pre­mium of 90.5 per cent to lo­cal house prices.

This pre­mium is cal­cu­lated by com­par­ing the me­dian HomesEs­ti­mate within a school zone to the me­dian HomesEs­ti­mate of the re­gion as a whole.

Glen­dowie Col­lege was also an as­set to lo­cal prices, the real es­tate data web­site said, adding 64.43 per cent.

By com­par­i­son, sought-af­ter Auckland Gram­mar only adds 41 per cent.

Homes.co.nz data an­a­lyst Tom Lin­tern said that was due to the make-up of prop­er­ties in its catch­ment area.

‘‘The me­dian HomesEs­ti­mate used in this anal­y­sis takes into ac­counts all prop­erty types, so the cheaper apart­ments in down­town Auckland drag down the pre­mium for Auckland Gram­mar,’’ he said.

‘‘The Auckland Gram­mar zone extends into the CBD in­clud­ing parts of Queen St where there are a large num­ber of small, and rel­a­tively af­ford­able, apart­ments, while the Ep­som Girls Gram­mar zone only extends to Par­nell. The real value is in prop­er­ties that fall in both Gram­mar and EGGs zones.’’

Real Es­tate In­sti­tute chief ex­ec­u­tive Bindi Nor­well said in Auckland prices in soughtafter school zones had in­creased more quickly than the city’s prices a whole.

While Auckland’s me­dian price lifted 40 per cent over the past three years, Auckland Gram­mar zone prices were up 48 per cent, Mount Al­bert Gram­mar’s were up 59 per cent, and Ran­gi­toto Col­lege’s 42 per cent.

‘‘While it is hard to draw a par­al­lel be­tween the two, anec­do­tally our agents tell us that good school zones re­sult in higher sell­ing prices for prop­er­ties ‘in zone’. It is clear that the Gram­mar zone has out­per­formed that of the re­gion over the past few years.

‘‘Auckland’s traf­fic has be­come so bad that buy­ers would rather pay a pre­mium for lo­ca­tion and send their chil­dren to pri­vate schools.’’

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