“It will certainly impact property prices” says agent of Adelaide school zone shake-up
Agents say property prices are likely to fall in suburbs moved out of the zones for two of Adelaide’s most sought-after schools.
It follows the South Australian Government’s announcement that students from suburbs including Marleston, Glandore, Black Forest, and Kurralta Park would no longer be able to enrol at Adelaide High School or Adelaide Botanic High School starting next year.
The schools no longer have enough capacity for increased enrolments.
Education Minister John Gardner claims the former government got its student sums wrong.
“For whatever purpose, the former government identified a zone that was larger than the school was able to take.”
Real Estate Institute of South Australia (REISA) CEO Greg Troughton said the changes will have an impact on the market.
“There is a strong and growing cohort of buyers that look at a range of buying factors including the school catchment zone. With average hold times of housing exceeding 12 years, it is not surprising that good quality public schools are a factor in the decision to buy.
“Removal of a popular sought-after school zone from a district will likely cause a decline to that cohort of buyers,” Mr Troughton told WILLIAMS MEDIA.
He said there is plenty of anecdotal evidence that many people look for the school zone first and then the house second when it came to buying a property.
“There’s ample evidence and anecdotal stories that show certain people pay a premium for certain catchment zones to ensure their children can access a particular school.”
“It will almost certainly impact property prices in the now excluded suburbs”
Agents say property prices in the affected areas will be impacted.
“The restriction on enrolment to either Adelaide High School or Adelaide Botanic High for students located outside the newly demarcated zone will certainly impact property prices in the now excluded suburbs,” agent Grant Giordano of South Australia Sotheby’s International Realty told WILLIAMS MEDIA.
“The location of a home is almost always predicated on the family’s choice of an education provider.”
“Removing the option for families to attend the schools they wish to attend will lead to negative migration in now excluded suburbs and net migration, as well as larger demand, for housing in the still incorporated suburbs,” Mr Giordano said.
Sales director of Ouwens Casserly Real Estate, Alex Ouwens, said there will be a recalibration of interest of families with children about to attend school into the relevant suburbs.
“Family homes in the areas added to school zones may see a slight uplift and equally those schools removed may see a slight decrease in value for family homes.”
He told WILLIAMS MEDIA one of their agents who specialises in one of the affected suburbs have buyers who bought into the suburb to be in the Adelaide High School zone.
“They will be considering all options, including selling the property and losing the hefty stamp duty. They are very aggrieved.”
“Government isn’t responsible for property price windfalls”
Agent Michael Stentiford of Ouwens Casserly Real Estate says that while families who already own property in the affected areas will forgo the increased property values as a result of the rezoning, the government isn’t responsible for it.
“The Government is responsible for sustainable education numbers, not property price windfalls. Those who benefit will think it is great governance and those who don’t will be the most vocal. Self-interest, unfortunately, rules supreme,” Mr Stentiford told WILLIAMS MEDIA.
“I suspect the actual number of families who moved into the zone for schooling reasons would be small and they will be given access apparently to Unley High School which is certainly one of Adelaide’s finest public schools.”
Source: The Real Estate Conversation 22nd February 2019 https://www.therealestateconversation.com.au/news/2019/02/22/it-will-certainly-impact-property-prices-says-agent-adelaide-school-zone-shake