The recent Primary 1 School Registration Exercise commenced last month and will be concluding at the end of August, much to the relief of many parents. With the parents’ attraction effect being a factor in our MOAT analysis, we can see this effect displayed clearly with the recent registration statistics. Certain primary schools were grossly oversubscribed compared to others – and they are not the ‘elite’ schools that have been long lauded by many parents.
In this article, we will explore how the Primary 1 School Registration Exercise plays a role in the Parent Attraction Effect and how the location of certain schools have an impact on various property types.
Understanding the Primary 1 School Registration Exercise
In Phase 2C (for parents with no affiliation to schools), citizenship and distance between the place of residence and school comes into play. Taking into account Singaporean citizenship, the distance factor is now a driving force for the price appreciation of properties in certain areas. As a result, there has been an uptick of property purchases that are within walkable distances to schools. This category exists as the Ministry of Education (MOE) seeks to match students to schools nearer their place of residence for the convenience of the child and their parents.
Notably, there was an increase of places reserved for Phase 2C applicants, doubling from 20 spaces to 40 spaces from 2022’s registration onwards. Arguably, this move has also spurred parents to hone in on properties near more popular schools, concentrating the area with more potential applicants than usual.
In this year’s registration exercise, 82 schools went to ballot in Phase 2C for Singaporeans living within 1km of the school according to the MOE. This is around 45% of all primary schools in Singapore, demonstrating a larger emphasis towards the first tier of priority – being a Singapore citizen and living within 1km of the selected school. With more couples having higher incomes and financial planning for their children, taking into account a house’s location in relation to primary schools will be a big pain point for couples and parents-to-be.
Observing the Parents’ Attraction Effect
BTO Flats
Let’s take the examples of Princess Elizabeth Primary School, Sengkang Green Primary School, and Punggol Green Primary School as our case studies.
Princess Elizabeth Primary School is the most oversubscribed primary school in Phase 2C, with 249 applicants fighting for 48 vacancies.
As we can see in the graphic, the school is surrounded by many 3-bedroom apartments (orange) as well as a smattering of BTO flats that have both fulfilled their MOP (light blue) and those that have yet to fulfil it (darker blue). The overwhelming popularity of this particular school can also be attributed to many of these parents being a part of the sandwich generation, choosing to live closer to their parents in the mature estate of Bukit Batok and hence choosing to BTO in the vicinity.
Sengkang Green Primary School went to ballot in Phase 2C, with 45 vacancies and 87 applicants. Punggol Green Primary School faced the same issue, with 58 vacancies but 110 applicants. Both schools are surrounded by BTO flats past and within their MOP. The combination of BTOs maturing past their MOP and those that have not reached MOP all contribute to the rise in families subscribing to Phase 2C. These two areas have been known for their recent influx of BTO flats, accounting for the increase in Phase 2C applications as couples with young children in these areas aim for the same school.
We can deduce that there are many young families that have purchased BTO flats in these areas are all vying for the school nearest to their place of residence, should either parent not have any affiliation to another nearby school.
Rental Properties
BTO properties aside, parents are also granted priority as long as they live in the address within 1km of the school for a minimum of 30 months, counting from the start of the P1 registration exercise. This allows for households to rent units near schools of their choice for at least 30 months to secure the priority – attributing to a potential increase in rental prices for properties in the vicinity of popular schools. Many families prefer renting over buying a property as it offers them flexibility after the rental period ends and it is overall cheaper than leasing. More details on this particular arrangement can be found on MOE’s official website.
According to a recent report by The Straits Times, there has been an increase in Rental Activity in the areas around schools such as Princess Elizabeth Primary School, Pei Hwa Presbyterian Primary School, Nanyang Primary School and Rosyth School. With hopeful parents snatching up properties near schools of their choice as their motivation, other potential tenants are being priced out of the picture.
Resale Properties
Resale volume in condominiums around 10 randomly selected primary schools showed a marked increase as compared to the median resale prices in their own districts, as marked by data collected by The Straits Times. In their example, the resale price of condominiums within 1km of Princess Elizabeth Primary School was a median of $1,041 PSF in the second quarter of 2022. This is in contrast to the second quarter of 2023, which increased by 51.5% to $1,577 PSF.
Final Words
Despite economic grievances, property prices are resilient in Singapore. The demand for properties near primary schools in particular will take precedence for young couples when selecting their new home. While every school is a good school, schools with a reputation for certain qualities are facing lower demand than neighbourhood schools. This shows a potential shift in some parents’ perspective, that convenience and location may trump other factors in terms of choosing a school for their child.
At PropertyLimBrothers, we monitor the Parents’ Attraction Effect as a distinctive characteristic in our MOAT Analysis. This offers valuable insights for a specific group of buyers – young (or soon-to-be) parents. While the Parents’ Attraction Effect can be used as a standalone factor, we would advise considering all other factors carefully when making your move. All our consultants at PLB are well-versed in utilising the MOAT Analysis to narrow down your property search and meet your priorities. If you’d like to discover how this can enhance your property journey, do reach out to our team of consultants who are ready to assist you in understanding the process.
