Gautrain boosts property market
Category Property News
The roll-out of the Gautrain has been successful in providing a safe, quick and convenient means of transport to and from Gauteng workplaces says Peter Collins of JHI Properties.
According to the Gautrain website, since the opening of Park Station in Rosebank there has been a dramatic increase in the demand for the Gautrain and its bus services.
Collins says that despite initial resistance to the project and the Gautrain effectively trading in the red for its first few years, it has certainly been a catalyst for growth in demand for commercial property in the decentralised CBDs of Sandton and Rosebank. Both suburbs are experiencing rental growth of over 10 percent a year.
'Proximity to public transport has been a primary condition for commercial tenants exploring new office options for some time now, following the increased acceptance of the convenience of the Gautrain and a shift in the mindset of commuters to these congested nodes. The award-winning Alexander Forbes Sandton head office developed by Zenprop, Webber Wentzel's imminent move from Illovo Boulevard to Sandton central, Sasol's new head office development by Alchemy Properties, and the recent news that Discovery Health will be taking up Growthpoint's site opposite 1 Sandton Drive, are testimony to the economic benefit such infrastructural development has brought to Sandton and South Africa.'
Collins says Rosebank in particular has experienced substantial growth with Standard Bank's new R2.2 billion, 65 000m 2 head office recently commissioned and Hyprop's extension to Rosebank Mall - taking it from 35 000 to 62 000m 2. He says Investec Property Fund's acquisition of The Galleria site with its 33 500m 2 of office and retail space, and Growthpoint's 40 000m 2 corporate office site opposite the Park Hyatt Hotel, show Rosebank is fast becoming a popular location for discerning companies.
'This is clear evidence of the impact the Gautrain development has had on these nodes and commercial property practitioners look forward to further infrastructural spend by the public sector to boost growth at a time when macro-economic constraints have limited growth of commercial space.'
The economic impetus of the Gautrain development has led to new routes being proposed to link Joburg's east and west corridors. The proposed network will include a link from the existing Gautrain Park Station to Westgate on the West Rand; a link from the existing Rhodesfield Station to Boksburg on the East Rand; a rapid rail link from Naledi in Soweto to Mamelodi - via the proposed Gautrain Samrand Station or the existing Gautrain Midrand Station; and a link from the existing Gautrain Sandton Station to Randburg, a public transport hub.
Collins says Sandton and Rosebank appeal to multinationals that want to establish a presence in Joburg as a springboard into Africa.
'For example, JHI Properties' broker Omer Ginsberg recently concluded a lease for 1 400m 2 of office space on behalf of the Canadian-based Platinum Group Metals in Rosebank. Platinum wanted to be close to the Gautrain Station as its international management teams land at OR Tambo.
'We find multi-nationals, their subsidiaries or local corporates are looking for prime modern space from around 500m 2 to 2 000m2.' - IOL Property
Author: IOL Property
