Weekend Argus (Saturday Edition)
Traffic woes hit property buying patterns
TRAFFIC jams are a daily challenge for many residents of Cape Town and Joburg and the desire to avoid them is informing property purchasing decisions, say experts.
Adding to traffic and transport woes is the increase in the fuel price which could also have an effect on the property market, particularly the rental market, with people choosing to live closer to work, says Richard Gray, CEO of Harcourts Africa.
Gerhard Kotzé, MD of the RealNet group, says they have seen three preferences related to traffic emerging among homebuyers.
These include a growing demand among young buyers for apartments and townhouses near their workplaces and preferably close to shops, restaurants and sports venues.
“This preference is underpinned by the high cost of private transport, with fuel prices now 20% higher than they were a year ago and the fuel levy and Road Accident Fund levy being increased every year.”
Gray says Energy Department data points to a petrol price hike of about 55 cents a litre next month, and diesel costs increasing by about 39 cents a litre.
“Often consumers find themselves in a price pinch as the knock-on effects of fuel price increases influences the price of food and other goods and services.”
Although the property market is seen as a long-term investment and is fairly resilient to short-term economic fluctuations, the rental market can be susceptible to market instability and price hikes.
“We’ve seen trends where a series of petrol price hikes undoubtedly influences the demand for rental homes closer to CBDs, school districts and other amenities,” says Gray.
Kotzé says they have also seen families who want to live close to their children’s schools to avoid traffic.
“This is driving strong demand for homes in older, central suburbs that are well supplied with schools. It is also fuelling demand for homes in estates with their own schools and other amenities.”
Kotzé has seen lifestyle buyers for whom public transport systems such as the Gautrain or the MyCiTi network have created the opportunity to work in the city centre but live at the beach, for example, or in an affordable suburb where they can buy a house rather than an apartment.
“The expansion of these networks is likely to increase this trend and increase property values in areas within easy reach of the stations or bus stops,” he says.
Meanwhile, the City of Cape Town is trying to solve the city’s gridlock which can see commuters spending up to three hours in traffic daily.
The Transport and Urban Development Authority is spending R750 million on road infrastructure projects over five years to address congestion in the Kommetjie, Kuils River and Blaauwberg areas.
Brett Herron, mayoral committee member for transport and urban development, says the Travel Demand Management Strategy adopted last month proposes practical solutions to traffic congestion.
As the municipality is the largest employer in the city, he says that over the next few months some officials will be allowed to work remotely from satellite offices for a number of days or hours a week; begin and end work at non-standard times; or work from home during peak hours and travel to work in the off-peak period.
“Interventions to address and change commuter behaviour are needed to complement the city’s road infrastructure projects. Many residents spend three hours on the roads in peak-hour traffic because of inflexible working hours.
“Cape Town’s spatial and geographical layout exacerbates traffic congestion.
“So, we need the private sector to investigate how it can better manage employees’ working hours. Apart from working from home or flexihours, private businesses can allow some employees to work a compressed work week – fitting a five-day work week into four days instead.”