In Hamilton, the right side of the street can mean the right school – and a higher house price. Savvy buyers are eyeing zones that may soon command premiums. Jon Rawlinson reports.
Vanessa Williams
Since the decile system was scrapped, it’s become trickier to know whether a suburb offers access to top-tier education.
However, recent data from Realestate.co.nz sheds light on a clear correlation between house prices and school zones – for the best marks, some appear prepared to pay big bucks.
It may be clichéd, but the old real estate adage that buyers aiming to bag a bargain should seek ‘the worst house on the best street’ still rings true. What’s more, the right side of that street may make a remarkable difference too.
“As Hamilton grows, more school zones could show the same price disparities seen in Auckland and Christchurch.”
“This data shows just how valuable a school zone address can be,” says Vanessa Williams from Realestate.co.nz.
“One side of the road may be in zone for a popular school but the other isn’t. Houses on the right side can command higher prices.”
Academics and mortarboards may matter more than many thought when we invest in bricks and mortar.
Being in the right zone has already helped raise the roof on prices for properties near at least one Hamilton school.
The average Hillcrest High School in-zone asking price was recorded as 55 per cent higher than for properties nearby, Williams says.
Rototuna junior and senior high schools also fared well – prices up by 19 and 15 per cent in zone.
In contrast, there was a minimal difference for zones of other well-respected schools – Hamilton Girls’ and Hamilton Boys’ high schools.
The average price of the 1057 listings in the Hillcrest zone between October 2023 and September this year was $1.177 million. Prices in the Rototuna zones were both over $1 million, Hamilton girls and boys at $776,000.
Auckland’s highly-priced ‘leafy green’ central and North Shore suburbs topped the table – Epsom Girls’ Grammar saw in-zone properties fetching almost 90 per cent more than others nearby.
“It’s more pronounced in Auckland and Christchurch, which are very well known for differences in school zones,” Williams says.
“But the landscape is changing across the board. It’s certainly a bigger part of the conversation these days than it was years ago.”
Because densely populated cities have more schools within any given area, people can move to ‘the right zone’ without moving too far away from family and workplaces for example.
As Hamilton is one of New Zealand’s fastest growing cities, more zones could show similar disparities to those in Auckland and Christchurch in the not-too-distant future.
Consequently, savvy buyers may be able to get in on the ground floor, choosing properties where the difference is negligible now but could change as population density increases.
However, as growing cities add new schools, zones may shift — reducing both land value and ceiling prices.
Whether we’re purchasing as an investment, or to ensure our children access ‘the right schools’, certain zones can help deliver top marks.
“If people are looking to buy in certain school zones, even if they’re not thinking about children, the data suggests that they could see a premium for their property further down the line,” Williams says.
School zones are worth factoring into any home purchase – even if children aren’t part of the plan.
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