Buying Property Near a Primary School: Key Factors

By Lynette Tan

If you’ve only got a minute:

• The proximity to popular primary schools does not always co-relate a price premium for surrounding properties.
• There is a 30-month stay requirement for parents looking at priority admission for Primary 1 registration.
• A property purchase should take into consideration financial capacity, family’s lifestyle and future residency plans.

Just when parents think they’ve navigated the sleepless nights of infancy and the turbulent tantrums of toddlerhood, a new challenge looms… primary school registration.

This critical milestone, typically commencing in July before a child turns 7, often triggers a fresh wave of anxieties. For those with discerning school preferences, the quest for a coveted spot can begin years in advance, even influencing decisions about property - purchasing or renting strategically within the desired school's 1 to 2 km radius.

This strategic manoeuvring often involves significant sacrifices. Families may find themselves weighing the financial implications of relocating against the perceived benefits of a particular school. The pressure to secure a place in a "good" school is immense, fuelled by societal expectations and the desire to provide their child with the best possible educational foundation.

This creates a complex decision-making process where families must balance educational aspirations with financial realities and lifestyle preferences. The pressure is high, and the stakes feel even higher. But the question is – is it worth it?

Primary One registration exercise

The Primary One Registration Exercise allocates placements based on a multi-phase system.

When applications exceed available vacancies in Phases 2A to 2C Supplementary, balloting is conducted. Priority admission is granted based on the child’s citizenship status and proximity of the home to the school, with the aim of reducing time for commute and managing oversubscription. The order of priority is as follows:

1. Singapore Citizens (SC) living within 1km of the school
2. SCs living between 1km and 2km of the school
3. SCs living outside 2km of the school
4. Permanent Residents (PR) living within 1km of the school
5. PRs living between 1km and 2km of the school
6. PRs living outside 2km of the school

For many popular (i.e., oversubscribed) primary schools, Singapore Citizens residing beyond 2km often face balloting during the Primary 1 registration process. As a result, being located within a 1km radius of such schools is considered advantageous, as it significantly improves the child’s chances of securing a place. This proximity advantage could make nearby properties more attractive to parents seeking to maximise their admission priority. 

Home-School Distance

The Home-School Distance (HSD) of a residential address is determined by the shortest distance between the school's boundary and the registered address, using the building outline from submitted building development plans. Because HSD can vary annually due to updated building plans or school boundary changes, parents should verify their address's HSD category for the relevant year's P1 Registration Exercise.

For parents looking to move into a property for priority admission, do note that there is a 30-month stay requirement. The “start” of this 30-month stay requirement differs according to the below criteria,

• Resale property - at least 30 months from the start of the child’s P1 school term. 
• New property - the vacant or delivery possession date of the new property you are moving into must be within 2 years of your child's entry into P1.

For those who will be using a caregiver’s address, you’ll need to make a declaration of alternative child-care arrangement for your child's P1 registration if you want to use the NRIC address of a caregiver living within 2km of your preferred school.

You can make a declaration if you meet both conditions:

• You and your spouse are both working full-time at the time the declaration is made.
• your child is under the care of a grandparent or a parent's sibling.

It is important that parents do not try to “game the system” as MOE will transfer your child to any school in its sole discretion should they find out that the information provided during P1 registration was untrue.

Does proximity to a popular school give surrounding property price a boost?

While we genuinely believe that all primary schools are good schools, especially since they follow a centralised curriculum, certain schools may be more popular due to specific programmes, school culture, or historical performance of their primary 6 students excelling at their Primary School Leaving Examinations (PSLE).  As such, parents may prefer particular schools that align with their aspirations or logistical needs.

Thus, there is a common belief that the proximity to popular schools is a significant factor that can influence property price. But is this true or just a misconception?

Property prices surrounding “Popular” primary schools

The DBS Group Research ran an analysis, comparing the price appreciation of select properties located within the 1km and 2km radius of popular primary schools against that of private non-landed residences in the same district over the past decade, to provide an indication of the implied relationship.

Price appreciation of homes located within 1km and 2km of popular primary schools vs district

Based on the sample data, the findings are inconclusive in demonstrating that properties within 1km or 2km of a popular primary school consistently outperform its district in terms of price appreciation. While this may hold true for some schools, it does not appear to be a uniform trend across all.

It is also difficult to pinpoint a single factor that affect home price as there are multiple considerations like entry timing/price, proximity to MRT station, lease tenure (e.g., leasehold vs freehold), project age, proximity to multiple primary schools, and other development attributes. As such, it is challenging to isolate the effect of school proximity as a singular driver of price appreciation.

Assessing your needs and priorities for a property purchase

While it is easy to understand that parents want the best for their child, purchasing a property is a huge decision and parents may want to consider more than just the proximity factor to guide their purchase decision:

Family's lifestyle: What are your priorities in terms of commute time and access to amenities? How about the priorities of other family members?

Child's learning style and needs: Does your child thrive in a competitive environment? Are there specific programmes offered by certain schools that align with your child's strengths and interests?

Long-term residency plans: How long do you plan to live in the property? This impacts the importance of resale value.

Financial capacity: Be realistic about your budget and explore the long-term financial implications.

Ultimately, navigating the Singaporean primary school landscape requires careful consideration of various factors beyond the proximity to a desired school. By weighing lifestyle preferences, financial implications and future needs, families can make informed decisions that prioritise their child's overall well-being and set them up for success. Remember, the "best" school is the one that best fits your child and family.

Start Planning Now

Check out DBS Home Marketplace to work out the sums and find a home that meets your budget and preferences. The best part – it cuts out the guesswork.

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Alternatively, prepare yourself with an In-Principle Approval (IPA), so you have certainty on how much you could borrow for your home, allowing you to know your budget accurately.

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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.