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Johannesburg - Gautrain stations have not resulted in a much-anticipated boost to real estate in their neighbourhoods, a research body has found.
"Owners in Sandton and especially the older, established neighbourhood of Rosebank are still unsure of the impact the Gautrain stations will have," said Hayley Ivins, a property analyst at property research and valuation group Lightstone.
Ivins said property owners don't yet know how many passengers will be using the stations in their areas, and what the level of noise pollution will be.
The Rosebank Gautrain station is due for completion in the middle of 2011. The Sandton node was opened in June 2010.
According to Lightstone, price inflation around the Gautrain stations in Rosebank and Sandton is between 7% and 12% in 2010 – similar to the overall inflation trend in Gauteng.
"This is in contrast to 2007, when overall inflation for Gauteng was at 7% compared to 15% for Rosebank and 20% for Sandton," said Ivins.
However, within these areas there are price disparities which could mean that investors are hesitant to buy too close to the Gautrain stations.
Lightstone said properties 3km away from the stations overtook those 2km away at a median price of around R1.4m compared with R1.2m.
Two years ago these properties were similarly priced.
Lightstone focused on properties between 2km and 3km of the stations to gauge the impact on prices from investors looking to benefit from easy access.
"The market is fraught with apprehension at the moment," said Jonathan Davies, branch manager of Pam Golding Properties' Hyde Park office near Sandton. "The buying public just isn't confident enough to make property investments."
According to Davies, investment in the areas also hinges on appearance.
"At the moment it's a dusty site with cement mixers."
Davies said it will take about 18 months for investors to regain their confidence and to realise the value of buying a property close to one of the stations.
Davies' findings concur with First National Bank's (FNB's) property analytics department.
FNB's Third Quarter Residential Property Review reported on Monday that investment buying will be placed on the back burner due to home owners' low rental yields.
According to the report, only 7% of all sales were made to buy-to-let buyers in the third quarter.
The report said home owners can expect a rental yield of about 7.8%.
"Where operating or maintenance costs would still need to be covered, (this) would hardly appear enticing on a large scale to a financially stretched household sector," said the report.
- Fin24
"Owners in Sandton and especially the older, established neighbourhood of Rosebank are still unsure of the impact the Gautrain stations will have," said Hayley Ivins, a property analyst at property research and valuation group Lightstone.
Ivins said property owners don't yet know how many passengers will be using the stations in their areas, and what the level of noise pollution will be.
The Rosebank Gautrain station is due for completion in the middle of 2011. The Sandton node was opened in June 2010.
According to Lightstone, price inflation around the Gautrain stations in Rosebank and Sandton is between 7% and 12% in 2010 – similar to the overall inflation trend in Gauteng.
"This is in contrast to 2007, when overall inflation for Gauteng was at 7% compared to 15% for Rosebank and 20% for Sandton," said Ivins.
However, within these areas there are price disparities which could mean that investors are hesitant to buy too close to the Gautrain stations.
Lightstone said properties 3km away from the stations overtook those 2km away at a median price of around R1.4m compared with R1.2m.
Two years ago these properties were similarly priced.
Lightstone focused on properties between 2km and 3km of the stations to gauge the impact on prices from investors looking to benefit from easy access.
"The market is fraught with apprehension at the moment," said Jonathan Davies, branch manager of Pam Golding Properties' Hyde Park office near Sandton. "The buying public just isn't confident enough to make property investments."
According to Davies, investment in the areas also hinges on appearance.
"At the moment it's a dusty site with cement mixers."
Davies said it will take about 18 months for investors to regain their confidence and to realise the value of buying a property close to one of the stations.
Davies' findings concur with First National Bank's (FNB's) property analytics department.
FNB's Third Quarter Residential Property Review reported on Monday that investment buying will be placed on the back burner due to home owners' low rental yields.
According to the report, only 7% of all sales were made to buy-to-let buyers in the third quarter.
The report said home owners can expect a rental yield of about 7.8%.
"Where operating or maintenance costs would still need to be covered, (this) would hardly appear enticing on a large scale to a financially stretched household sector," said the report.
- Fin24
