Transport plan to impact property
2008-02-08 · Property Infrastructure
Never mind Gautrain's impact on property prices in Johannesburg. Stand by instead for the even greater, mainly positive impact of the metro's updated Integrated Transport Plan (ITP).
This plan is basically about providing 300km of public bus transport as well as improving the city's east-west rail axis.
"And judging from the effects improved transport systems have had on property in international cities, we can expect demand for properties within easy reach of the bus transport networks in particular to increase," says Gerhard Kotzé, CEO of the ERA South Africa property group.
The network will extend in an intricate pattern of connections roughly from Orange Farm to the south-west of Johannesburg to Midrand in the north-east and from Roodepoort in the west to Bruma /Eastgate and beyond in the east.
Most major areas of greater Johannesburg, from the affordable to the upmarket, will be included in the system, which will intersect and integrate with the Gautrain network, with the centre of the hub being the city's CBD.
"Increased demand will mean accelerating property values and fresh development of higher density residential property as well as service industry orientated commercial property such as retail nodes and offices on the peripheries of the routes," Kotzé points out.
Realising the full potential of the network does, however, depend on the reliability and security of the system implemented by the Johannesburg Department of Transportation.
"Assuming those issues are addressed, the system should also go a long way towards relieving traffic congestion."
A major strategic driver for the project strategy is the elimination of the effects of historical imbalances which forced unnatural spatial development and led to a disjointed transport system, further aggravated by the flight from the perceived "crime and grime" of the CBD to nodes such as Sandton and Midrand.
"The result was poorly integrated public transport, with several stand-alone, often duplicating solutions that are costly and inefficient and add to congestion and pollution.
"Moreover, the problems are increasing. Some 1700 new cars are added to our roads daily and the effects in property buying trends are far reaching.
"While Gautrain will operate at a macro level, the ITP will operate at a micro level, hopefully restoring balance to the property market as it is phased in over several years."
This plan is basically about providing 300km of public bus transport as well as improving the city's east-west rail axis.
"And judging from the effects improved transport systems have had on property in international cities, we can expect demand for properties within easy reach of the bus transport networks in particular to increase," says Gerhard Kotzé, CEO of the ERA South Africa property group.
The network will extend in an intricate pattern of connections roughly from Orange Farm to the south-west of Johannesburg to Midrand in the north-east and from Roodepoort in the west to Bruma /Eastgate and beyond in the east.
Most major areas of greater Johannesburg, from the affordable to the upmarket, will be included in the system, which will intersect and integrate with the Gautrain network, with the centre of the hub being the city's CBD.
"Increased demand will mean accelerating property values and fresh development of higher density residential property as well as service industry orientated commercial property such as retail nodes and offices on the peripheries of the routes," Kotzé points out.
Realising the full potential of the network does, however, depend on the reliability and security of the system implemented by the Johannesburg Department of Transportation.
"Assuming those issues are addressed, the system should also go a long way towards relieving traffic congestion."
A major strategic driver for the project strategy is the elimination of the effects of historical imbalances which forced unnatural spatial development and led to a disjointed transport system, further aggravated by the flight from the perceived "crime and grime" of the CBD to nodes such as Sandton and Midrand.
"The result was poorly integrated public transport, with several stand-alone, often duplicating solutions that are costly and inefficient and add to congestion and pollution.
"Moreover, the problems are increasing. Some 1700 new cars are added to our roads daily and the effects in property buying trends are far reaching.
"While Gautrain will operate at a macro level, the ITP will operate at a micro level, hopefully restoring balance to the property market as it is phased in over several years."
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