Homes near good schools come with a premium

11 Sep 2012

Figures from the property analyst, Lightstone, have shown that suburbs in all the major cities in South Africa which have established good schools, producing satisfactory academic results, are rated very highly by potential homebuyers, says Tony Clarke, managing director of the Rawson Property Group. Those looking to invest in property should always consider how well supplied an area is with good schooling.

"In general buyers will pay a premium of 40% or more for the sort of standard three bedroom, two bathroom home that most families these days occupy if it is in an area which is designated as part of a school feeder district and if it gives their children easy walking or cycling access to good schools.

For example, in Cape Town, a home of this type in Rondebosch, which has easy access to at least eight or nine good schools, will have an average price of R2,6 million. The same home in, say, Muizenberg or Hout Bay would probably cost well under R2 million."

Extramural activities

Clarke says that middle class South Africans often also look for schools with a strong sporting tradition. "They like to feel that if their children have a sporting talent it will be nurtured and fostered." Similarly, many parents are adamant that their children must attend schools in which there is good music coaching and some will also look for supplementary cultural activities such as drama and art."

Areas in which there are several schools do tend to become less congenial to residents on account of traffic congestion and noise, with the result that they are not favoured by young couples without children or with children too young to attend school. They are also not favoured by retirees.

"Where an area has just one good school this tends to be the ideal arrangement - it will not be overcrowded and will have a pleasant, congenial atmosphere, because the numbers visiting the school each day are fairly limited," Clarke says.