Organisation issues warning to agents
The government continues to deal with the housing crisis in New Zealand – and the Real Estate Institute of New Zealand (REINZ) has warned that the industry should also note the impact of The Ministry of Education’s new enrolment schemes on Auckland housing prices.
The Ministry of Education plans to introduce new enrolment schemes for 135 schools in Auckland at the beginning of Term 2 on May 03, 2021.
However, REINZ acting chief executive Wendy Alexander warned that the changes to school zones could put further pressure on Auckland house prices.
“While families will look for a number of specifics when it comes to purchasing a house, such as the number of bedrooms and bathrooms, the size of the backyard, or proximity to public transport, what school zone the property is in will often also play a significant role in the equation,” Alexander said.
“We know from prior experience that homes within specific school zones tend to achieve a higher price than homes outside popular school zones, and the difference of one street, can literally be the difference between hundreds of thousands of dollars in some parts of Auckland.”
In the last 12 months, REINZ revealed that median house prices in the Auckland region have increased by 18.5%, reaching a new record of $1,120,000 in March 2021. In Manurewa, house prices increased by 20.6% to $820,000 and showed signs that they would continue to increase in the coming months.
Alexander explained that the housing stock in Auckland still cannot keep up with demand despite an increase in the number of housing developments across the region.
“Beyond specifics about the house, one of the most common questions real estate agents get asked is ‘what school zone is the house in?’ With the Ministry’s proposed changes, this is now going to be an even more important question for even more parts of Auckland, particularly as principals are warning that many families – even those within proximity to their local school - may be caught out and be unaware of the changes in just a couple of weeks’ time,” Alexander continued.
Alexander warned REINZ agents to keep up to date with school zone changes to ensure they can advise potential buyers accordingly.
