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Johannesburg - The advent of the high-speed Gautrain heralds good news for housing markets along its route.
When the train’s first stage between Sandton and the OR Tambo airport begins operating soon, this will be the catalyst for various positive developments on the property front, experts say.
First National Bank property analyst John Loos says the train will give rise to various high-density developments along the Gautrain route, property values will rise over time and the train will bring about a paradigm shift in the middle- to high-income group perceptions on public transport.
Vered Estates managing director Jonny Novick says those owning houses close to a Gautrain station will in future experience steady upticks in their property values. Houses close to Gautrain stations have already increased in value, but there is definitely more value ahead.
He says although the full impact of the Gautrain on the housing market is still unknown, he expects that people will pay a premium to have a high-speed train on their doorstep.
The prices of overseas properties close to stations, such as the underground rail systems in London, Paris and New York, come at significant premiums of up to 20%.
Although properties in Johannesburg's northern suburbs, such as Rosebank and Sandton, are already priced at a premium, Novick expects prices in Midrand will rise when commuters realise the positive effect of the new system of transport on their quality of life.
The Gautrain already has stimulated new development nodes around the stations and the first large residential development in decades close to the OR Tambo airport has recently been announced.
The Rhodesfield Crossing development near to the Rhodesfield station on the East Rand will comprise 1 500 new residential units.
- Sake24.com
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