Weekend Argus (Saturday Edition)
NEW CHOICES TO CUT COSTS
Increasing expenditure on transport is seeing buyers and tenants opting to live closer to work, schools
SOUTH AFRICA’S rising fuel price is having a huge impact on the country’s property market, with mixed-use developments and suburbs close to commercial nodes now more attractive than ever before.
The popularity of mixed-use developments has been a growing trend for some time, but not everyone can afford to rent or buy into these new, modern places. For this reason, suburbs situated close to work and retail opportunities are just as sought-after.
“With growing congestion in Cape Town, as well as rising utility and maintenance costs, more homeowners are opting for a lock-up-and-go lifestyle in a live-work-play business node,” says Sandra Gordon, Pam Golding Properties research analyst.
Over the past two years, this increased traffic congestion has seen an acceleration in the decentralisation of business nodes and more people are opting for well-located properties that reduce the lengthy daily commute to work and school, she says.
It’s a growing trend worldwide that people want to live close to where they work, says Chris Tyson, managing director of Tyson Properties. For this reason, one will continue to find buildings with ground floor as retail, offices above that, and apartments on top.
“We will also see a lot more commercial development in residential areas.” He says this is a worldwide trend.
“For example, in London, you’ll find new and old buildings next to one another. There is a global move towards work-live-play, and people enjoying being able to go to restaurants after work without a long commute.”
Furthermore, South Africa’s fuel prices are “playing a huge role now with regards to where people choose to live”, Tyson says. Cape Town’s Sea Point area is a “prime example” of this growing trend, with new commercial and retail developments fitting in residential apartments above. It is rejuvenating the area.
“It is now a popular area that has been driven largely by commercial and retail. You will also find bike racks outside buildings as there is a big shift towards a more European-type lifestyle.
“This kind of rejuvenation and redevelopment pushes up residential property prices so it is definitely positive for property owners,” says Tyson.
While commercial and retail developments can have a huge negative impact on neighbouring residential property values if not planned, designed and executed correctly, the opposite is also true, says Harry Nicolaides, chief executive of Century 21.
“Developments with appealing aesthetics that have been well planned so as not to block views and natural sunlight in nearby or neighbouring residences, and with proper control of traffic volumes can have a positive effect on surrounding residential property values.
“With employment opportunities severely limited in a stagnant economy, residents in certain areas are forced to travel a distance just to remain employed. Making matters worse are rising transport costs.”
Nicolaides says it is “logical to conclude” that most people would prefer to work closer to home. If new commercial developments occur within their areas and result in more job opportunities, demand for homes in these suburbs will increase.
“This will impact positively on the value of their homes.”