Gautrain spinoffs start to gel

The property market on the Gautrain route axis is stirring and should speed up with the launch next week (subs: 8 June) of the first leg of the rapid transport system from Sandton to OR Tambo International airport.

Property company ERA South Africa says there’s now growing interest among many developers, ratepayers and homeowners in how the system will impact and what opportunities it presents.

“Inquiries are definitely picking up as the various stakeholders assess how they will be affected by the Gautrain although understandably, it’s still too early for clear cut buying and selling trends to emerge,” says Sharon Jordaan of ERA Midrand.

“Having said that, judging from overseas experience, notably in the UK with its highly developed rail system, we expect extensive re-zonings, higher density developments and commercialisation within 10 to 15km of Gautrain terminuses,” she adds.

“Indeed, Gautrain orientation meetings organised by the Tshwane municipality with ratepayers, developers and property marketing companies substantiate our views and we are advising property stakeholders accordingly, with the caveat that it will take time for everything to fit into place.”

Logically, she says, a proliferation of apartment, cluster and sectional title developments is to be expected, as well as the establishment of commercial/ retail “buffer” zones to service the needs of travellers in proximity to the station terminuses and the associated Rea Vaya network.

“Property values and demand patterns will be affected accordingly and again, if overseas experience provides any guideline, ‘Park and Ride’ areas will be set aside and homes within easy reach of these facilities and the stations will be in demand – provided they are not too close!”

Jordaan also notes that Gautrain fares and toll road fares between Johannesburg and Tshwane will reportedly be similar at about R60 per commute, so that if fuel and vehicle wear and tear is taken into account, private vehicle transport will be substantially more expensive, making Gautrain financially attractive.

“Our assessment shows broad support among property stakeholders for Gautrain with the proviso that operational, safety and security standards are maintained. And operating company Gautrans has indicated a major commitment in this respect so we believe the anticipated positive effects of the Gautrain on the property market will manifest successfully.’

Article by: www.era.co.za