PROXIMITY EFFECT OF ELITE PRIMARY SCHOOLS ON HOUSE PRICES BEFORE ENROLMENT PERIOD

Abstract

‘Kiasu Singaporeans’: this is a term that originates from the Hokkien dialect. It is widely used locally, and loosely translated as ‘afraid of losing out’ or ‘afraid of not getting the best’. Singaporeans parents are known as ‘kiasu parents’, as they will find all ways to get their children to top desired schools (Yang, 2017 & Ong, 2016). In fact, Teng (2015) reported that 4 in 10 families send their children to enrichment classes before primary school in order to get ahead of their peers. This is a familiar scene in Singapore, given the high levels of competitiveness, such that every parent wants their child to be the top. This dissertation investigates whether parents deliberately relocate before the primary school enrolment period in order to stand a higher chance of getting their child into an elite school. The only way to bypass this system without affiliation is to gain priority through the ‘home-school distance’ ballot. This paper aims to find out if there is a seasonal price variation before enrolment as more affluent parents try to take advantage of this scheme. This is significant as it shows if such property speculation and greater market fluctuations affect overall property prices, preventing less wealthy families from enrolling in elite schools. This study revealed a +5.05% (private) and -0.76% (public) price difference for properties transacted within a 1km radius of an elite school, 3 – 4 months before enrolment period for the transaction to be valid. However, it did not show specifically how price varied during such periods in the run-up to enrolment. An in-depth study revealed that only the private sector experienced a positive seasonal variation, followed by a slow gradual decrease in price difference closer to the enrolment period. Interestingly, public housing located within a 1km to 2km of schools did not show any significant price difference.