select
|

How traffic and transport costs are reshaping property markets

Traffic jams are a daily challenge for many residents of Johannesburg and Cape Town and the desire to avoid them is informing many current property purchasing decisions in these two metros.
 
So says Gerhard Kotzé, MD of the RealNet estate agency group, who explains: “We can clearly see three different preferences emerging among different groups of homebuyers.
 
“The first of these is the growing demand among young buyers for apartments and townhouses in areas close to their workplaces - whether these are in the city centre or decentralised commercial hubs - and preferably also very close to a variety of shops, restaurants and entertainment and sports venues.
 
“This preference is being underpinned by the high cost of private transport, with fuel prices now being 20% higher than they were a year ago and the fuel levy and Road Accident Fund levy being increased every year. Add this to the ever-increasing costs of maintaining and insuring a vehicle and many young people would far rather put that money towards rent or even a home loan in a convenient location.”
 
The second group of buyers doing their best to avoid traffic congestion, he says, are those with families who also want to live close to their children’s schools. “Just as they don’t want to sit in traffic, most parents also don’t want their children to have to spend hours each day travelling by bus or taxi to school in a distant suburb, and with both parents in many families working, the logistics of getting children to and from school themselves has become an increasingly serious consideration in their choice of home. 
 
“This is driving particularly strong demand for homes in older, central suburbs that are well supplied with schools within walking or minimal driving distance of home – and are still not too far from the office, or better still, are on a bus or train route that enables a non-car commute to work.
 
“Among the more affluent, it is also fuelling demand for homes in estate developments which incorporate their own schools and other amenities that eliminate or significantly reduce the need to travel. These gated communities are particularly popular with buyers who are able to work from home most of the time.”
 
The third group, Kotze says, are “lifestyle” buyers for whom the new public transport systems such as the Gautrain or the MyCiti network has created the opportunity to work in the city centre but live at the beach, for example, or in a more affordable suburb where they can perhaps buy a house rather than an apartment.
 
“And the expansion of these networks is likely to exacerbate this trend and increase property values in all the areas within easy reach of the stations or bus stops – as has happened around all the new Crossrail stops in London, for example. (See https://www.buyassociation.co.uk/2016/11/04/crossrail-boost-london-house-prices/)
 
“Traffic avoidance will no doubt also influence developers’ and builders’ decisions about the location of new housing projects, and so have a significant effect on the future shape of these two metros, and most likely Ethekwini as well.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK