The Ministry of Education recently issued a notice in Beijing and 19 other cities detailing an expanded policy calling for increased school placements by neighborhood for primary and middle school students. This kind of placement system has already resulted in parents frantically buying houses to ensure that their child is enrolled in a better school. 

Reporters who visited certain school districts found that despite a drop in quality among homes, the real estate marketplace in many areas was still hot. In the area surrounding key primary schools and middle schools housing prices continue to rise. (“Key” schools in China are the top schools in the city). The prices are much more expensive than in the past. Parents pay nearly three million RMB to buy a tiny apartment (less than 10 square meters). And here’s the catch: the families do not live in the apartments; they only use the address to be able to enroll in the school.

According to the Ministry of Education’s new regulations, by 2015 19 different cities will all be divided up into counties or districts. One hundred percent of primary school placements will be from the neighborhood surrounding the school and over 90 percent of middle school students will come from the surrounding neighborhood. The new policy is meant to decrease the problems in the school selection progress but is leading to an increase in academic-based real estate investments.

A three million RMB “bathroom”

Beijing Number 2 Experimental Primary School is located in a narrow alley in Beijing’s Xicheng District. The houses surrounding the school are mainly old courtyard homes. However, because of the area’s proximity to the school the houses are priced at nearly 300,000 RMB per square meter and listings are scarce. A single room, with an area of less than 10 square meters, no bigger than a bathroom, is listed at three million RMB after taxes. There is no bargaining for a lower price. “A room is very hard to find, and an apartment is even harder to find,” said a local real estate agent.

Beijing Peixin Elementary School, located in Dongcheng District, is a renowned primary school built in 1986. The school is in a neighborhood surrounded by older buildings. However, there too housing prices have increased because of the school, with property costing upwards of 65,000 RMB per square meter.

Zhongguancuan is also a traditional school district with a large focus on primary and secondary schools. The area is also known for high housing prices. An agent from the Zhongguancuan neighborhood said that, “Last year houses cost over 80,000 RMB per square meter and since then it has soared to over 100,000 RMB per square meter. The cheapest homes cost between 30,000 and 40,000 RMB per square meter. The market will not change unless the schools change their location.” 

Nine year education plans

The Ministry of Education plans to implement a “Nine Year Plan” in Beijing and other cities in order to integrate primary and middle school education. After graduating from primary school, students will all go directly into the same middle school. With this new policy, students will not be able to choose which schools they attend.

There are already a few examples of such “Nine Year” programs. Not long ago, Chedaogou Primary School partnered with the Beijing Institute of Technology and became the Beijing Institute of Technology Affiliated Elementary School. The school was then connected to the Beijing Institute of Technology Affiliated Middle School. This year, in Beijing’s Dongcheng and Haidian Districts, more than ten other schools have introduced nine year plans as well.

However, before the new regulations had been officially announced, some parents already took the lead in frantically purchasing housing in popular school districts. One real estate agent reported that a month after the announcement was published prices in areas near Beijing’s 171 Middle School and attached elementary school Qingnianhu Primary School, had already increased from 50,000 RMB per square meter to 60,000 RMB per square meter. Chen Aiyu, principle of No. 171 Middle School, a key school, said that linking up primary and middle schools will help ease the stress of selecting a school and therefore alleviate part of the burden for families.

“There still are no general regulations for student enrollment, and the school districts have not been divided, but we must first fill the holes made by the new regulations. If we wait until the regulations have been published then prices will be too high and all of the apartments will be taken,” said a Beijing parent.

Several parents said in interviews that education is an important long-term goal. School enrollment policies are always changing. From buying a house near the school for three years to splitting the cost of a house with other families, while frantically studying for early tests to enter the nine year system, they are unsure of how to come out on top of the new system.

Resource gaps between schools worsen problems

Educational resources in these cities are not balanced; key schools and famous teachers are extremely concentrated in certain areas. This has come from the large numbers of students who choose certain schools and results in a violation of the principles of equal education.

“Because there are still large disparities between schools, the new policy will inevitably come up hollow,” said Xiong Bingqi, vice president of the 21st Century Education Research Institute. Xiong added that while the authorities’ intentions are good, they should focus on balancing education resources fairly amongst schools rather than changing the system of enrollment. 

Financial commentator Ma Guangyuan said that in primary schools, examinations do not rank the students but instead rank the schools against each other. This results in rivalries between schools. Because of the clear distinction between schools, parents will buy apartments and rooms in order to obtain the best education for their children. Experts agreed that when dealing with education reform, the Ministry of Education should reform numerous departments, not just one. It is always an exasperating ordeal for parents and students who have to deal with small setbacks and frustrations in order for effective reforms to be successful.

According to a primary school language teacher, education reform should focus on rotating teachers throughout different schools in order for all students to have an equal educational experience. The government should also increase funding for teacher training and increase subsidies for education in poor areas. “The gap should be filled and educational resources should be allocated fairly. I have worked as an educator for 30 years and have suggested this path to the authorities for the past 10 years. However it has not yet been effectively promoted.