Although demand for property within close proximity of good schools is no new phenomenon, its less likely now that excellent state schools are found close to home.
Agents say although fewer excellent state schools, such as King Edward’s School in Johannesburg, Rondebosch Boys and SACS in Newlands remain, demand for residential property in these neighbourhoods as well as that close to private schools is increasing.
The SA Centre for Development and Enterprise recently reported ‘significant expansion of independent schooling in South Africa and that between 2009 and 2012 alone, 118 295 more learners entered independent schools.’ The Independent Schools Association of South Africa (ISASA) estimates that this year there are more than 2 500 independent schools.
A superior level of school education now reigns as a common denominator of private educators, parents, property developers and industry professionals. As business is bypassing the shortcomings of the country’s basic education system, public funds have been raised through the listings of companies such as Advtech and Curro Holdings, to satisfy demand for private schools.
Recent growth in this sector was reported when Curro Holdings outperformed annual forecasts earlier this year. Chief executive Dr Chris van der Merwe also announced the opening of an additional 30 schools, as well as private teachers’ training facilities by next year.
Exclusive housing
Setting aside the historic and current shortages of good schools in rural and township areas, a growing number of private schools are being established in upmarket suburban areas. Although more income groups now have access to lower-fund private schooling than ever before, the property industry is seeing increased demand for exclusive housing developments, close to reputable private schools.
Another trend shows that monthly household budgets increasingly reflect the need for quality education, where private school fees and mortgage bond re-payments now sit side by side, according to agents. Naturally this isn’t a worry for everyone. Adrienne Hersch Properties CEO, Adrienne Hersch in Johannesburg says “Most family buyers and tenants with school-going children who elect to live in luxury lifestyle estates, in particular in some cultural groups, seldom question the cost of private schooling”.
In the Western Cape, the Boland town of Stellenbosch illustrates how increased demand for private education, from preparatory through to tertiary levels, has impacted on upmarket areas. Rene Coetzee, representative of the De Zalze Winelands Golf Estate Home Owners Association says residents usually rate the cost of schooling as less important than the convenience of short travelling distances and security.
“Property owners at De Zalze comfortably afford to prioritise schooling and tertiary education, despite high property prices and monthly estate levies.” She says the location of Somerset College just 5km from De Zalze, has become a huge draw card for young families, especially when breadwinners commute to upcountry and international work destinations.
This area also provides continuity in education, a vital component when making long-term house purchases near a private school, says Coetzee. The towns of Franschhoek, Wellington and Paarl offer alternative tertiary education options to Stellenbosch University. This region is synonymous with reputable cookery schools, as well as agricultural, art and business institutions.
Hersch says Johannesburg has traditionally been home to any number of very good public schools. “However, more buyers in search for exclusive properties in upper end suburban areas specify locations where private schools cater for specific cultural groups.” She says high end housing in specific residential nodes, such as the North Eastern parts of Johannesburg as well as parts of the Sandton precinct, have grown in popularity as the result of Greek and Jewish schools in central locations.
“More Muslim residents have moved into upmarket Northern suburbs over the past ten years, since the establishment of new mosques in the area.” Hersch says low traffic congestion, and short travelling distances to private Muslim schools in Houghton and Greenside have also resulted in increased demand in upmarket security estates.
However, demand patterns vary in certain geographic areas, as seen in the Southern Suburb of Cape Town where residents in Tokai and Constantia enjoy access to three different private schools. Strong demand, both for residential and retail property continues around exclusive private estates in this area.
Ironically, demand has outstripped supply to the point of new development at the top rated Steenberg Golf and Lifestyle Estate. This award-winning estate, as well as Silverhurst and Silvertree estates are not only located within close proximity of Reddam House and the US Embassy, but are also less than 1km away from Pollsmoor Prison.
Expat communities also show a strong preference for private schools close to security estates and luxury apartment developments. While relocation specialists, who act in the best interest of foreign citizens who are relocated with their families, do mention exceptional educational facilities at ex-model C schools in large cities, the emphasis remains on secure housing and private schooling.
Developers of mixed use and private estates say that schooling is prioritised in the earliest planning processes. Rob Stefanutto, Managing Director of Dogon Properties says: “Demographic planning of new developments include more than one single private school in an area, but also universities, high security and easy access to public transport.”
A tip for buyers of new developments: he suggests looking at traffic reports which form part of environmental impact assessments and provide solid investment guidelines.
*Anna-Marie Smith’s work as a freelance property writer since 2006 followed a career in the corporate service industry after studying Communications at Unisa. She changed direction from financial communications to writing for property publications, with an interest in sustainable residential and commercial development. She writes for Business Day HomeFront, Property Professional Magazine, PrivateProperty.co.za and Earthworks Magazine.
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Article source: http://www.moneyweb.co.za/moneyweb-property/nearby-private-schools-a-soughtafter-commodity