PROPERTY: Improved Transport in Gauteng Increases Value Of Property
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This is according to Kevin Mountjoy, National Sales Manager at ooba, South Africa’s leading bond originator, who says that transport in Gauteng such as the Gautrain has definitely had a positive effect on the residential property market in the Gauteng province. “While homeowners might not see an immediate effect on their property prices as a result of the enhanced transport network, they are likely to see a significant increase in the medium-term.”
Mountjoy explains that because traffic and congestion is such a huge factor in Gauteng, it has an impact on the supply and demand of residential property. “Home owners often choose to live as close as possible to their places of work in order to reduce their time on the roads. With the development of the Gautrain, potential home owners no longer have to purchase homes in close proximity to their jobs because they now have alternate and effective means of transport in Gauteng.
Improvement of Transport in Gauteng Beneficial for Business
“Now that the Gautrain has started to make its long-awaited debut trip between Sandton and Pretoria, people living in Pretoria no longer have to sit in hours of traffic each morning. Home owners are able to live in the area they choose to, without suffering through the strain of traffic.”
Mountjoy says that the current high fuel price, coupled with the proposed tolling initiatives on the highways in and around Gauteng will work out to be extremely expensive for motorists travelling these routes to and from work each day. “The cost of using the highways versus the cost of the Gautrain will be a determining factor on where to purchase property for many Gauteng commuters.”
He says that the transport networks in and around Gauteng have improved in general and as a result residential properties in close proximity to the improved networks have shown increased activity in supply and demand of residential properties in these areas.
“The massive infrastructure drive by the government to improve the country’s national transport systems, public facilities as well as roads should contribute towards higher property values in most areas around the developing networks and infrastructure.”
Location is Key with Regards to the Transport in Gauteng
He says that according to a Nationwide report, property located 500m from an underground station in London would attract a 7% price premium over an otherwise identical property 1,500m from a station. An Australian study by PRDnationwide also revealed that the price of property located near to train networks in the country surpassed other areas by 2.6% in 2009.
Mountjoy advises that potential home owners consider commercial centres, schools and public systems of transport in Gauteng when purchasing property, as these amenities usually increase the value of a property investment.
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