Toll road plans will impact property markets

The proposed tolling of the N1 highway between Pretoria and Johannesburg will have a mixed impact on property values and the prioritisation of growth areas.
“It’s an aspect that all property stakeholders in the affected areas will have to take into account,” says Gerhard Kotzé, CEO of the ERA South Africa property group.
The programme is part of a national roll out of new toll stations on existing and new routes criss-crossing the country.
Others routes of note in the toll station programme are the Cape Town ring road, the R300 between the Hex River and Bots River, the N2 between George and Port Elizabeth, the N2 along the Wild Coast between East London and Isipingo, the John Ross Highway between Empangeni and Richards Bay and the N4 highway from Mozambique to Botswana. 
Due to the population densities involved, however, arguably the greatest impact on the property market will be felt on the Johannesburg to Pretoria route which bisects one of the heaviest concentrations of residential and industrial areas in the country.
“Gauteng’s contribution to the country’s gross domestic product is about 33% and it has the greatest density of population including the highest percentage of newly economically enfranchised South Africans,” notes Kotzé.  
“The region accounts for 40% of the country’s manufacturing and financial services, it has benefited from rapid migration into a limited land mass and it houses 53% of the country’s affluent households. In this context, the volume of traffic on the N1 between Pretoria and Johannesburg (the Ben Schoeman highway) is one of the highest in Africa.
“International experience shows that commuter patterns are influenced by proximity to toll roads and this will occur on this route to one degree or another as the toll station roll-out takes place.
“It will all come down to accessibility to places of work and general infrastructure and how that relates to the cost of commuting using a route that in the past was not tolled. In turn some areas will benefit while others will be penalised.”
Complicating the issue further, he says, is the advent of the Gautrain “which is already affecting property demand patterns as we all know”. Similarly the new Bus Rapid Transit system (BRT) in Johannesburg, the Rea Vaya, will come into the equation as its network grows.
“Understanding the dynamics involved will therefore be key for all stakeholders in the property market - developers, homeowners and corporates alike - and there are lessons to be learnt from what has taken place overseas in this respect, notably in the UK which has a long established park-and-ride culture of commuting by public transport.”
Issued by ERA South Africa

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us