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             Because public primary schools in many Chinese cities have to admit 
			children who live locally, parents like Zhong are driving up 
			property prices in areas that have the most popular schools. The 
			trend is set to accelerate with a baby boom expected after China 
			eased its one-child policy last month. 
 			"I don't have a choice. I want the best education for my daughter 
			and this is the only way," said Zhong, who has hunted in the 
			alleyways near the Beijing No.2 Experimental Primary School for six 
			months without any luck.
 			Prices for pre-owned homes and apartments in Beijing rose 19 percent 
			in October from a year ago, a dizzying pace for those trying to get 
			a foothold in the Chinese capital.
 			But the spike is far greater in the areas young families covet — neighborhoods near the best schools, which are often clustered in 
			the older parts of Beijing, not near sprawling new apartment 
			complexes.
 			On average, pre-owned homes close to good schools are 50 percent 
			more expensive than similar ones in comparable areas, and the gap 
			has widened over the past year, said Chinese real estate agency and 
			consultancy HomeLink. Supply is also very tight, half a dozen 
			parents told Reuters. 			
 
 			China loosened its family planning rules last month to allow couples 
			to have two children if one of the parents was an only child, a 
			measure demographers say will apply to tens of millions of families.
 			"The new policy will widen the supply-demand gap for school-area 
			houses in the next three to five years," said Zhang Quanguo, an 
			analyst with HomeLink. "Prices will go even higher."
 			NOT EVEN A BATHROOM
 			Zhong, a 32-year old electronics salesman, said he was ready to pay 
			two million yuan ($328,200) for a tiny home with one room the size 
			of about four king-size beds, in a shabby alleyway near the Beijing 
			No.2 Experimental Primary School.
 			The home, which doesn't even have a bathroom, sits in a rundown 
			Chinese-style courtyard with other small homes. That would have been 
			more than double the cost for a similar home in downtown Beijing, 
			one real estate agent said.
 			But the owner still wanted more, so Zhong had to say no.
 			Other parents said they were willing to pay high prices and endure 
			less than ideal living conditions to get their child into a top 
			primary school.
 			Chinese families put enormous emphasis on education. Many parents 
			believe that choosing the right primary school for their child is 
			vital to getting them into a good high school followed by a 
			prestigious university.
 			"Education is very competitive," said a parent surnamed Wang, the 
			father of a two-year old boy.
 			"We don't have the connections to get him into a good school, so we 
			can only buy a school-area home," added Wang, who declined to give 
			his full name.
 			Zhong said he and his family had not planned to live in the 
			courtyard home, about 3 km (1.9 miles) from Tiananmen Square.
 			But the purchase would have enabled him to move his household 
			registration and thus meet the school's requirement of three years 
			of neighborhood residency before his daughter began classes.
 			"These owners know that what they are really selling is the school 
			opportunity," said Zhong. 						
 
 			
            [to top of second column] | 
 
			"SOCIAL INEQUALITY"
 			In an effort to give families fair access to education, the 
			government has for years required public primary schools to admit 
			students from local neighborhoods in many cities.
 			However, a nationwide system for ranking schools according to 
			academic results has led to significant disparities, with selected 
			key schools getting more funding as well as better facilities and 
			teachers.
 			Indeed, experts say the quality of education varies greatly between 
			the top primary schools and the rest.
 			"This is social inequality, public schools use government resources 
			and funding, but most people can't afford to buy a school-area 
			home," said Tan Fang, a professor at the South China Normal 
			University in southern Guangzhou city.
 			The Ministry of Education, in a statement to Reuters, said the 
			government had sought to strengthen the quality of basic education 
			"so the majority of parents will be content to let their children go 
			to nearby schools".
 			School-area housing has become a high-profile subset in real estate 
			markets, not only in Beijing and Shanghai, but also in less 
			developed cities that have millions of people but fewer high-quality 
			schools.
 			Most buyers of school-area homes are relatively well-off parents who 
			give up bigger and newer houses to live near good schools, which are 
			often surrounded by small, older apartments, said HomeLink analyst 
			Zhang.
 			There are other concerns for parents.
 			In principle, children are admitted based on the address on the 
			household registration, or hukou, of their family.
 			Many schools require families to have lived in the neighborhood for 
			up to five years prior to enrolment. Relocating a hukou, even within 
			Beijing, can take time. And parents often don't know if their child 
			has been accepted until they reach school age. 			
			
			 
 			More equitable education was highlighted in reforms announced last 
			month, along with a relaxation of the one-child policy and many 
			other economic measures.
 			The reform document called for narrowing the differences in the 
			quality of education among urban and rural areas.
 			Change may not come soon enough for parents like Zhong.
 			"I feel very tired and helpless," said the weary father. "It's a lot 
			of pressure."
 			(Editing by Dean Yates) 
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