P1 Registration Changes: Will Properties Near Popular Primary Schools Still Command a Proximity Premium?

P1 Registration Changes: Will "School Premium" Disappear for Properties Near Top Primary Schools?

Starting from 2027, 12 primary schools located in private residential enclaves will pilot a new "two-track admission framework" for Phase 2C of the Primary 1 (P1) registration exercise. Under this scheme, 50% of Phase 2C places will be set aside for children living outside the school's 2km radius.

This means that families residing close to these schools will no longer compete for the same single pool of vacancies with all Phase 2C applicants, while families living beyond 2km will now have a dedicated quota to vie for.

Following this announcement, the biggest question on the minds of parents and homebuyers alike is: now that living beyond 2km still offers a fighting chance of admission, will homes near popular primary schools remain as sought-after as before?

Based on the current situation, while this adjustment may temper the willingness of some buyers to pay hefty premiums solely for school proximity, overall housing demand near popular primary schools is unlikely to experience a significant slump—and could even see a slight boost.

Only 12 Schools Affected for Now; Broad Impact Remains Limited

The pilot applies to just 12 schools initially, representing less than 10% of primary schools islandwide.

These schools are predominantly situated in private residential clusters such as Bukit Timah, Newton, Marine Parade, Tanjong Katong, and the Central Area. They include sought-after institutions such as Nanyang Primary School, Methodist Girls' School (Primary), Anglo-Chinese School, Raffles Girls' Primary School, and Tao Nan School.

Because the new scheme applies solely to Phase 2C at designated schools—and has not been rolled out islandwide or extended to earlier phases like 2A and 2B—it is unlikely to drastically reshape housing demand around top schools in the near term.

In other words, this move represents a recalibration of vacancy allocations rather than a complete erasure of the home proximity advantage.

Living Within 2km Still Carries Compelling Practical Appeal

Even with half the vacancies reserved for children living beyond 2km, staying near a school continues to hold substantial practical merit for many families.

First and foremost, a shorter daily commute saves valuable travel time for children and simplifies drop-offs and pick-ups for parents. For families planning to stay put for six years or longer, this day-to-day convenience often outweighs the singular benefit of registration priority.

Secondly, applicants within the 2km radius will now compete exclusively within their own allocated quota. With a portion of vacancies earmarked for out-of-boundary applicants, parents will have to weigh the number of applicants against available seats in each track. The actual odds of balloting success will still depend on specific school demand.

Consequently, families who value convenience and wish to compete in the home-proximity track may still choose to buy or rent near their school of choice.

Potential for "Post-Admission Relocation" Demand

The new framework could also unlock an alternative wave of housing demand.

Families living beyond 2km who successfully secure a spot via balloting may subsequently choose to relocate closer to the school to ease their child's daily travel routine.

Such households may not rush to purchase a property before registration, but could actively seek rental units or homes nearby once admission is secured.

Should this trend pick up, rental markets and family-sized units near top primary schools could enjoy a fresh source of demand support.

Far from merely diluting housing demand, the new framework might simply alter when that demand surfaces—shifting from "relocating before registration" to "relocating after securing a spot".

School Premiums May Narrow, but That Doesn't Mean Home Prices Will Fall

The most tangible outcome of this change is likely a softening in the "school premium" that some buyers are willing to pay.

Previously, some families were prepared to pay top dollar to secure a home within 2km of a premier school. Now that living further away still provides access to 50% of Phase 2C vacancies, some parents may adopt a wait-and-see stance—entering the outer-radius ballot first rather than overpaying upfront.

As a result, homeowners relying purely on the "within 2km" tag may find it harder to command outsized premiums. Similarly, new launches near top schools may no longer be able to command a substantial premium solely based on school distance.

However, narrowing premiums do not necessarily translate into falling property prices.

For developments situated in mature estates with solid transport connectivity, comprehensive amenities, pleasant surroundings, and strong product fundamentals, prices will remain well supported by overall market demand. Proximity to a school is merely one factor underpinning property value—not the sole arbiter.

Bukit Timah and Katong Offer Far More Than Just Good Schools

Several of the pilot schools are located in prime, long-established residential estates such as Bukit Timah and Katong.

These neighbourhoods boast mature community amenities, seamless connectivity, diverse dining options, high-calibre residential environments, and inherent land scarcity. Their real estate values have never relied solely on branded schools.

Even with changes to P1 registration rules, genuine demand from families, owner-occupiers, and long-term investors in these precincts remains resilient. As such, the policy's impact on the overall appeal of these locations is expected to be relatively modest.

The properties most vulnerable to pricing pressure are those that banked predominantly on being "within 2km of a top school" as their main selling point, while lacking strong fundamentals in transport, lifestyle amenities, or unit layouts.

Proximity Rules Still Apply in Earlier Registration Phases

It is also crucial to note that this policy revision applies only to Phase 2C.

In earlier P1 registration phases, home-school distance continues to be a key tie-breaker when applications exceed vacancies. The advantage of proximity has not been eliminated entirely; its dominance has simply been moderated in one specific phase.

When planning property purchases around their children's education, parents should look beyond the headline "50% reserved for beyond 2km". A holistic assessment must factor in the applicable registration phase, historical application trends, available vacancies, and their family's own eligibility criteria.

Housing Demand Near Popular Schools Expected to Hold Steady

Overall, the new mechanism is likely to encourage more rational pricing for properties near renowned primary schools.

Speculative bidding driven purely by school balloting could ease, and sellers will find it harder to demand excessive premiums based solely on proximity.

Nonetheless, underpinned by daily commuting convenience, long-term family living needs, and potential post-admission relocations, both the sales and rental markets near sought-after schools are set to maintain healthy support.

At this stage, the pilot covers just 12 schools and Phase 2C alone. The real market impact will only become clearer over the coming years as application numbers, balloting ratios, and household relocation trends emerge.

Should the "two-track admission framework" eventually be expanded to more primary schools or earlier phases, the pricing dynamics of properties near elite schools could see a more structural shift.

For prospective buyers, rather than paying an exorbitant premium solely for the "within 2km" badge, it pays to thoroughly assess transport links, amenities, floor plans, incoming supply, and resale appeal.

School proximity remains an asset, but long-term value preservation ultimately hinges on far more than a single school badge.