The better the local schools, the higher the house prices
Studies show people pay much more for homes near top schools, and KZN's North Coast has taken note
While perfectly paved pathways, tree-lined roads and manicured lawns are the hallmarks of posh suburbs, it is top-notch schools that are commanding high house prices.
With KwaZulu-Natal’s North Coast developing at lightning speed, property experts say sufficient plans are in place to deliver good schools to meet the educational demands of those accustomed to luxury living.
This is in keeping with a trend that has emerged in the UK, Paris, France and the US in recent years.
A London School of Economics study showed that people were prepared to pay substantially more for properties close to good schools.
The Wall Street Journal also reported on the correlation between good-performing schools and home values, which could vary by between $50,000 to $300,000 a home, based on the current rating of a school in a particular suburb.
With Cape Town in the grips of a severe drought, KwaZulu-Natal has taken centre stage as a more appealing and affordable alternative.Gareth Bailey, of Pam Golding Properties, said since quality educational institutions had a significant impact on the strength of property markets, it was important that newly established suburbs along the North Coast property belt reflect sufficient plans to incorporate them.
“Despite significant residential growth, no new schools have been established in our greater Umhlanga area in the last 15 years and our coastline is in desperate need of additional quality school and tertiary education options,” Bailey added.
Property developer Tongaat Hulett Developments (THD) has taken note of the trend and identified two sites along the North Coast for the development of new schools, one being from the ADvTECH stable.
“ADvTECH will be opening a new facility of the Sibaya Coastal Precinct ... which could serve some 10,000 residential units,” said Sithembiso Mthembu, THD’s head of development.
“The number of residential units occupied within the Sibaya coastal precinct will be growing significantly in the next five to 10 years, and so will the opportunities for more educational facilities to meet demand.”A similar facility operated by the Curro brand will be opening in Cornubia in Umhlanga. Both facilities will cater for primary and high school pupils.
“Sibaya will also provide space for the development of tertiary institutions over the short to medium term. Further afield, THD has prospective educational facilities marked for iZinga, oTongati and Ballito – all areas expanding at a significant rate.
“While many may feel the supply of quality schools and tertiary institutions along our coastline is trailing the rate of residential property development, it is encouraging that there are substantial plans afoot by THD to make land opportunities available to future educational institutions,” Bailey said.