Tiny apartment near desirable school fetches huge price
Updated: 2014-11-10 19:02
By Zhang Yi(chinadaily.com.cn)
A tiny apartment measuring only 4.4 square meters in Xicheng district, Beijing, sold for 1.35 million yuan ($220,500) recently.
The small room, located near one of the better primary schools in Beijing, cost 310,000 yuan per square meter.
"The price of apartments near good schools in Beijing is on the rise against the headwind of the secondhand property market as a result of the strict school admission policy," said an agent surnamed Wang who works for the Jiuhong real estate agency.
"Obviously, it is not for the buyers to live in. It is for them to locate their children's household registration to gain admission to the schools nearby."
Under the current admission policy, primary schools in each educational district in Beijing may only enroll students with a hukou, or household registration, in that area. High schools, of which many of the most desirable are in Xicheng, must draw their students from the local primary schools.
Schools in the area, under the school district system, were divided into 11 districts based on Xicheng's 15 streets. Whether a student is accepted by a primary school in the district depends on the location of his or her hukou.
"The people who purchased the tiny flat aim to earn a hukou in the district to help their kids get the opportunity to attend good schools in the area," Wang said, adding that the owners would probably resell the flat in a couple of years after gaining admission to the desired school.
Similar flats in Xicheng district have sold for between 12,000 to 140,000 yuan per sq m, according to the company.
A residential compound nearby Zhongguancun Third Primary School is much-touted for its residents' opportunities to enter the school. Apartments in the compound measuring 45 square meters sell for about 3 million yuan.
Wang said owning an apartment near good schools, regarded as a wise investment, buys the opportunity for the owners' children to attend the most desirable primary schools.