South Africans are lucky enough to live in country with a fast growing economy. Growth means that more people experience a real growth in their expendable incomes, which means more financial activity - and more growth as a result.
Unfortunately growth also means an increase in traffic congestion on the roads, as more and more motor vehicles take to South African roads. Combine this boom in traffic congestion with the rising cost of fuel and the slow upgrade and development of transport systems in South Africa, and you get a growing demand for property closer to people's places of work.
Commuting can be stressful, expensive and time consuming. And it's just plain NO FUN - no matter how wonderful your car sound system is, or how entertaining the DJ at the local radio station tries to be.
The global trend of increased traffic congestion, especially in and near major cities such as Johannesburg, Pretoria, Cape Town and Durban, directly affects the real estate choices home buyers make.
Cars increase each year
Just last year, more than 700 000 new cars were sold in South Africa. And this number is expected to grow by almost 10 percent in 2007, according to Road Traffic Management Corporation statistics. This means that every day almost 2000 new cars hit the road in South Africa! The majority of these cars drive mainly in and around the major cities in South Africa, where traffic congestion is already problematic.
Unless the South African road infrastructure is constantly being upgraded and expanded, this increase in motor vehicles translates in higher congestion on the roads. Unfortunately South Africa is still playing catch-up with overdue road maintenance, which saw many roads throughout the country deteriorate to pot-hole riddled tracks just a few years ago.
On the positive side, road repairs are being made. And my own travels through South Africa show that most of our roads are in good condition. The huge expansion of the N1 highway between Bloemfontein and Verkeerdevlei to a double lane highway is also a very positive sign. But South African traffic keeps increasing, so the South African transport department will need to do even more to relieve congestion.
Some South African cities are beginning to parallel major international cities such as Sydney, London and New York in terms of traffic congestion.
Fuel prices keep on climbing
Petrol prices have increased by approximately 18 percent since the beginning of the year.
The price of oil rises because of the limited supply and an ever increasing demand for fuel by the growing world economy. Fuel prices will keep on increasing until every last drop of oil has been burnt. This means that, unless our dependency on fossil fuels is soon replaced with technology based on renewable energy sources, the cost of commuting between home and work will keep on increasing.
Traffic is bad for your health
Traffic is bad for you. Yes, you know it. And you probably didn't need the University of California research done at the Irvine's Institute of Transportation Studies to tell you that traffic congestion raises blood pressure, causes headache and intensifies muscle pain, did you?
Well, the research also showed that long commutes cause workers to get sick and stay home more often - which is bad for business - no matter what business you are in.
People want to live closer to work
Traffic problems influence property choices. People want to live closer to work to spend less time in the oozing traffic on the roads each day. Living closer to one's place of work is becoming a lifestyle choice in South Africa, which is in line with longstanding trends throughout the rest of the world.
Buyers are willing to invest more money in purchasing or renting a home closer to their places of work. Living closer to work makes sense. These buyers motivate their higher financial commitment in terms of purchase price with projections of future savings in travelling expenses. But living close to work makes sense on other levels as well.
Spending less time in traffic means more time for other, more enjoyable things. A shorter commute is less stressful, healthier and cheaper. And who wouldn't love having a fleeting thought for the poor suckers still stuck in traffic, when your braai fire is already lit and you can relax, spending time with your loved ones?
Think alternative
If your budget just cannot stretch far enough to buy property along the obvious routes closer to work, you might still be able to dodge the traffic, by exploring alternatives. Spend some time and energy researching the less obvious areas closer to work. You are likely to find an area that will drastically reduce your daily traveling time, without busting your bank.
"Back roads" are your friend here. The areas linked to your place of work through those less obvious back roads, that will still shave time off your commute, are likely to be better suited to your price range, because the competition for these properties are likely to be less fierce.
Alternative modes of transport is also something to consider. The construction of the Gautrain along probably the most congested route in South Africa, the N1 between Pretoria and Johannesburg, which accommodates around 180 000 cars daily, opens up a new possibility for commuters.
If South Africa follows international trends, the properties close to the Gautrain stations will face growing demand, which will tend to edge prices higher over time. In South Africa, however, these trends have historically been in reverse. So, be forewarned.
Property investments in these areas could go either way. But the future benefits of living close to reliable public transport could be well worth the investment. Property experts are expecting real estate near the Gautrain stations to increase in value.
Traffic affects property
Wether you are looking to buy property close to Gautrain stations or not, the basic principle is sound: Traffic influences property prices. And as always, where residential real estate choices are concerned, prospective buyers need to find their own ideal balance between property value and quality of living, the latter of which sometimes just outweigh financial considerations by a mile.
