I am looking for some general advice about the best was of splitting a large data table,I have 2 different choices, partitioning or different schemas.
I don't think there is much of a choice there. If you put them in different schemas, then you are inherently partitioning the data. It just a question of how you name your partitions, which is more of a naming issue than a performance issue.
The data table refers to the number of houses that can be include in a city, as such there are large number of records.
I am wondering if decided to partition the table if the update speed/access might be faster that just declaring a different schema per city.
If you partition based on city, then there should be no meaningful difference. If you partition based on something else, you would have to describe what it is partitioned on, and what your access patterns are like.