Good school zones boost house value
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.’’