Relocation of ACS schools: Analysts expect downward pressure on Newton property prices, opposite effect in Tengah

SINGAPORE — The future relocation of Anglo Chinese School (Junior) from Winstedt Road to Barker Road is likely to result in downward pressure on property prices around its existing site in the Newton Road area. 

On the other hand, home prices in Tengah are expected to go up with Anglo Chinese School (Primary) moving to the new town in the western part of Singapore in 2030, property analysts said.

They were responding to queries from TODAY after the announcement of the relocations of both schools by Anglo-Chinese School (ACS) on Thursday (Feb 9) morning. 

ACS (Primary) is a popular school on Barker Road in the prime district of Bukit Timah and has a reputation for drawing students who come from families from higher socioeconomic backgrounds, especially since its current location is one dominated by private housing.

It was also announced that ACS’ other primary school, ACS (Junior), will eventually move to Barker Road by 2039 from its present location on Winstedt Road in Newton. Barker Road is a seven-minute drive away from Winstedt Road. 

The two ACS schools are similar but ACS (Primary) offers the Gifted Education Programme, which is a national education programme that caters to intellectually gifted students. 

Ms Christine Sun, senior vice-president of research and analytics at property firm OrangeTee and Tie, said that properties near popular schools are "highly sought after" by both investors and owner-occupiers.

"In Singapore, many parents go to great lengths to secure a place in good schools by renting or paying top dollar for a nearby property," she said.

This is because parents believe that the chances of getting their children into elite schools "will be significantly enhanced" based on the Government's policy of giving priority admission to those who live nearer to their preferred schools. 

Ms Wong Siew Ying, head of research and content at PropNex Realty, said that ACS (Junior)’s move to Barker Road could potentially lower the home prices and rentals of homes in the Winstedt Road area. 

However, it may not be substantial since demand should still be healthy given the area’s proximity to Newton MRT Station and the tourist and shopping district of Orchard Road. 

She said that she expects home values and rents in the Barker Road area to hold up.

Ms Sun similarly believes that ACS (Primary) moving out of Barker Road may have some impact on housing prices in the area, but this “may not be too major in the short term”. 

This is because there are still many years until the school vacates.

She does not expect much impact on property prices for homes around Winstedt Road for the same reasons.

Rental demand for properties near Newton on Winstedt Road and Barker Road may slowly decrease, but it will not be too significant because there are many other popular schools in the Bukit Timah area that may help to draw rental demand, she added.

Some of such schools are Singapore Chinese Girls’ Primary School and Nanyang Primary School.

IMPACT ON PROPERTY PRICES IN TENGAH

Property analysts said that moving ACS (Primary) to Tengah will likely push up home prices in the new town up by about 15 per cent, although the impact will not be felt immediately since the area is still under development.

Ms Sun estimated that the move will bump up the prices of homes within 2km of the school. Prices of homes within 1km could go up by 10 to 15 per cent higher than the district average price.

She said that past studies by her company had found that resale prices of homes near popular schools tend to rise faster than others in the district, with those located near such schools drawing a premium of up to 15 per cent. 

“I think future Tengah Build-to-Order (BTO) applications may rise especially if the flats are within 1km to 2km from the school," she added. 

“Those who bought in earlier phases will also enjoy the first mover advantage of drawing rental interest since their BTO flats will be completed first.”

Ms Wong of PropNex said that ACS (Primary)’s relocation will draw more young couples and families to the estate. 

However, the impact on property prices in Tengah will not be immediately felt since the area is still under development, she added. 

Mr Nicholas Mak, head of research and consultancy at ERA Real Estate, cautioned against overplaying the effect of the school's move to Tengah, adding that he expects an increase in prices by a single digit percentage.

This is because the relocation will only increase the appeal of the estate to families with school-going children.

He added that other factors will influence the prices of homes in Tengah, such as improvements in the infrastructure there as well as Singapore's economic outlook.