Good Schools Affect Property Market

November 20 - Top educational facilities (or lack of them) affect the prices of property in many areas of South Africa.

As the industry makes a phenomenal comeback, potential homeowners are seeking areas where they can purchase properties that are close to 'blue chip' schools.

A good school with a long waiting list can affect the demand for property in the surrounding areas.

If a child has a confirmed place in the school, the parents are more likely to buy a home in the area, however a waiting list placement means that parents will require rented accommodation until things become more permanent.

Pam Golding told the media this week that there had emerged "the trend of a shortage of schooling preventing people buying in some areas."

Golding said that potential homeowners make an offer on a property subject to the child being accepted into a particular school.

"It's usually the better high schools, both government and private, which have waiting lists," she said. "This is happening on an increasing basis and it means that parents rather rent in an area closer to their child's school until they are able to change schools and move."

Areas in demand include the southern suburbs in Cape Town, as well as Parkview, Parkhurst, Hyde Park, Parwood and Saxonwold in Johannesburg.

The trend of good schools affecting demand is being felt on a much wider scale now than in recent years, according to Andy Todd, speaking for Seeff properties in the Cape's southern suburbs.

"It has been an issue for a number of years now," he said, "but there is usually only a bottleneck at the start of the school year."

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11/20/2009 10:07:10 AM