In Singapore, homes located near popular schools usually fetch higher prices.
As such, it’s not surprising that the relocation of Anglo-Chinese School (Primary) (ACS) from Barker Road to Tengah is projected to have a significant effect on property prices there.
Source: Property Fishing
According to property analysts, homes in Tengah within 1km of the new school may experience a 10% to 15% rise in prices.
The Straits Times (ST) notes that properties near popular primary schools are usually in high demand. This is because the school gives priority admission to prospective students living nearby.
Christine Sun, senior vice president of research and analytics at real estate agency OrangeTee & Tie, mentioned that properties near popular schools tend to fetch prices that are up to 15% higher.
Furthermore, the prices of these homes often increase faster than others in the same area.
According to Channel NewsAsia (CNA), Ms Sun also noted that parents in Singapore usually “go to great lengths to secure a place in good schools by renting or paying top dollar for a nearby property”.
Thus, the prices of homes near ACS (Primary) in Tengah are very likely to go up.
Source: Housing & Development Board
For instance, Ms Sun shared that resale prices for condos within 1km of the school’s Barker Road site are S$2,116 per square foot (psf).
This is around 18% higher than the median resale price in District 11, which was S$1,791 psf in 2022.
Wong Siew Ying, head of research and content at PropNex Realty, added that since ACS (Primary) is a popular school, there is a “good chance” that it will help push up property prices.
However, as Tengah is still under development, it is unlikely that there will be an immediate impact on its property prices.
Senior director of Huttons, Lee Sze Teck, shared that despite this, the application rate of Tengah HDB flats during the February BTO exercise is bound to rise.
He noted that “in the long run, it may increase the attractiveness of Tengah and attract more young families”.
Source: Housing & Development Board
Mr Sun shares the same sentiments, highlighting that families may consider staying longer in Tengah due to the school.
Ms Wong also notes that shifting to the heartlands is “a move in the right direction” for ACS (Primary), a popular and ‘elite’ school, since this will offer “more equal access” to it.
On the other hand, analysts do not believe that the relocation will affect Barker Road properties greatly.
They may experience a slight decrease after ACS (Primary) relocates in 2030. However, there are still many other schools within the area that make it attractive.
Furthermore, Ms Wong mentions that the Barker Road properties are still in close to the Newton MRT station as well as Orchard Road.
Because of this, the properties are still in a prime location and their prices are not likely to drop greatly.
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Featured image adapted from Housing & Development Board & Property Fishing.
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