Gau­train boosts house prices

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House price in­fla­tion around Gau­train sta­tions has largely been fol­low­ing gen­eral prop­erty trends for the past two years, with the short-lived boom be­tween 2005 and mid-2007 hav­ing ta­pered off since the gen­eral prop­erty slump of 2008.

On the whole, prop­er­ties within 2km and 3km of Gau­train sta­tions in Rose­bank, Sand­ton and the Pre­to­ria CBD are now mostly show­ing the same pat­tern of re­cov­ery as over­all house price in­fla­tion in Jo­han­nes­burg, Tsh­wane and Gaut­eng, with a few ex­cep­tions.

Light­stone re­cently com­pleted a sec­ond study analysing res­i­den­tial re­peat sales price in­fla­tion of res­i­den­tial prop­er­ties within 2km and 3km of Gau­train sta­tions in Rose­bank, Sand­ton and Tsh­wane sta­tions and com­par­ing it with over­all house price in­fla­tion in Gaut­eng. The first study looks at data from 2000 to 2007, while the lat­est re­search in­cludes sales to date in 2010. The 2km and 3km dis­tances were cho­sen to cap­ture the ef­fect of in­vestors look­ing to ben­e­fit from ease of ac­cess to the sta­tions, as these rep­re­sent a rel­a­tively easy walk to the sta­tion.

House price in­fla­tion in Gaut­eng de­clined from around 7% in 2007 to 0.5% dur­ing 2008 and to a low of -0.3% in 2009. Price in­fla­tion around the Gau­train sta­tions in Rose­bank and Sand­ton has fol­lowed the same trend, to per­form at roughly the same rate as over­all in­fla­tion at be­tween 7% and 12% in 2010. This is in con­trast to 2007, when over­all in­fla­tion for Gaut­eng was at 7% com­pared to 15% for Rose­bank and 20% for Sand­ton. A trend that is ev­i­dent in Jo­han­nes­burg and Tsh­wane is that growth in prop­erty prices within 2km of sta­tions re­mains some­what volatile, while that of prop­er­ties within the full range of 3km has shown more sta­ble and ro­bust growth and is now on an up­ward trend.

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