The impact of school nets, proximity to schools and school quality on private residential property prices in Hong Kong

Abstract

This dissertation researches the impact of school nets, proximity to schools and school quality on private residential property prices in Hong Kong. Aim to study the proximity effects of schools and school nets. Common techniques related to the field of real estate has been reviewed, including the hedonic price model and regression analysis. Followed by the overview of schooling system in Hong Kong, the government and aided primary schools in the Primary One Admission system for the analysis. Two hypotheses related to proximity to schools and the school nets quality has been proposed. Firstly, Proximity to schools has a positive impact on private residential property prices in Hong Kong. This is investigated by using a regression model that include distance between school and property as a dummy variable. The sample from Sham Tseng in School Net 62 has been selected for the analysis of this model. Secondly, school nets with high quality have a positive impact on private residential property prices in Hong Kong. This hypothesis is checked by another regression model that included the high-quality school net as a dummy variable. Two neighboring primary school nets has been selected for the analysis. They are school net 12 in and school net 14 in Hong Kong Island since school net 12 is popularly known for its high-quality primary schools. The results obtained from these two models have been checked against their test statistics. The hypotheses are verified by the coefficients of the targeted dummy variables.