Gauteng Freeway Improvement Project impacts property prices

The proposed Gauteng Freeway Improvement Project tolls will have significant impact on where buyers will choose to purchase property in future, according to a survey conducted by ooba, South Africa's leading bond originator.

In the survey, which was conducted on ooba's website, 80% of respondents said that they will select the location of their next property taking into consideration the location of Gauteng's new toll roads. Of the remainder of the respondents, 13.12% said they would not be influenced, and 6.88% said they weren't aware of the tolls.

“This significant majority is not unexpected if you take into consideration that the proposed tolls could increase an individual's monthly expenditure by as much as R1 000*,” says  Kevin Mountjoy, national sales manager at ooba. “The most road travel that any individual undertakes is between their office and their home, so naturally this added cost will influence where people want to live.”

The flow of traffic in and around Johannesburg and Pretoria is changing significantly, with increased congestion, the Gautrain, its supporting public transport infrastructure and the proposed tolls all playing a part. These new factors mean that the considerations for people buying property today are quite different from what they were ten years ago.

While the improving public transport infrastructure will provide an alternative for those who want to avoid the increasingly congested roads – especially around commercial hubs – this is not yet advanced or widespread enough to offer a realistic solution for the majority of road users, meaning that many people will still be subject to the tolls when they come into effect.
As a result, the costs of the tolls and the likelihood of being caught in traffic are key factors that homebuyers should be giving thought to when considering a new property. “Obviously nobody wants to waste precious time in traffic, but people often don't give this due consideration when looking for a home, given that most showdays are on a Sunday afternoon.”

He advises that people should look carefully at the areas in which they spend the most of their time to work out where and when they are likely to do most of their travelling. “Property buyers should take into account the location of commercial centres, schools and public transport systems when they buy property,” he says. “They should also look at where their family and close friends are located, as naturally they will be making those trips often as well.”

He also suggests that before making an offer on a house, potential buyers should drive the various routes that they will regularly take during rush hour and investigate the alternatives, to give themselves a sense of what they might be in for.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us