16
CONSTRUCTION WORLD
OCTOBER
2014
PROPERTY
Gautrain’s
KNOCK-ON EFFECT
In the four years since the
first phase of the Gautrain
rapid rail link was opened
for commercial service, the
rail link has been providing
fast, reliable and safe
transportation to commuters
throughout the region.
With 11 stations and 80 km
of railway network linking
Johannesburg’s commercial
nodes to those of Pretoria and
Oliver Tambo International
Airport in Ekurhuleni
Metropolitan Municipality, the
Gautrain connects key urban
nodes in the Gauteng city
region and transports more
than 50 000 passengers on a
typical workday.
One of Johannesburg’s fastest growing development nodes is colourful
Rosebank, which has undergone considerable growth in recent years.
>
Dr Andrew Golding, chief execu-
tive of the Pam Golding Property
group, says that at the time the
Gautrain was being developed,
some commentators expressed concerns
about its possible impact on residential
property values. These have all been but
forgotten within the residential property
sector where it has become a catalyst for
further development and growth. “This is
not unexpected as infrastructure upgrades
are often a disruption at the time but once
completed the positive effects make their
presence felt. This has been the case with
the Gautrain,” he adds.
Rosebank
One of Johannesburg’s fastest growing
development nodes is colourful Rosebank,
which has undergone considerable growth
in recent years. Ongoing upgrades are being
made to the precinct, some R7-billion being
spent on the development of commercial
buildings such as the Rosebank Mall, and the
Gautrain station was completed and opened
in August 2011. All of this development has
assisted in stimulating the residential prop-
erty market in Rosebank, which is booming.
“In the sectional title market, which
makes up the bulk of the residential property
market in Rosebank, the average selling price
of homes has nearly doubled from R771 000
in 2010 to R1,5-million year-to-date. Rose-
bank is a sellers’ market, residential proper-
ties here being sold within weeks of coming
to market. Property values have increased
and some homeowners are holding onto
properties in the hope that values will climb
still further,” says Dr Golding.
“Well situated residential property
within the Rosebank precinct is popular
particularly among a younger ‘hip-and-hap-
pening’ set who are attracted to the cosmo-
politan urban lifestyle that the area offers,”
says Rupert Finnemore, joint area manager
of PGP Hyde Park.
According to Finnemore, while the
Gautrain development has had a positive
impact on the area it would be a mistake
to think it is the only reason why the area
is thriving. It is a well positioned node
close to Sandton and surrounded by good
surrounding residential areas in which
developers have invested substantially as
part of the rejuvenation of the area.
“The Gautrain stations were strategically
situated in order to ensure they reach the
maximum number of potential passengers
and create the greatest economic impact,”
observes Dr Golding. “In other words, the
sustainability of the transport service and
city rejuvenation were considered key to the
project’s outcomes. In both regards the rail
network has been a great success.
“Positioning the Gautrain stations with-
in growth areas such as Johannesburg and
Braamfontein, as well as Sandton and Rose-
bank, proved prudent and there is little
doubt that this has had an important impact
on surrounding areas. With traffic having
increased steadily in Johannesburg in recent
years and the introduction of the toll roads,
many people want to live close to their
places of work or within easy reach of the
Gautrain, which is proving an increasingly
popular transport option.
“From a residential property perspec-
tive, we have seen the demand for property
intensify in some areas around the Gautrain
stations, with a corresponding increase
in the development of new or revamped
accommodation in all of these areas. The
impact on the residential property market
generally tends to radiate out from the
stations with the greatest impact felt toward
the centre,” adds Golding.
Braamfontein
Hyde Park joint area manager, Jonathan
Davies, says Braamfontein, which has
become a booming and dynamic part of
