Transactions near stations increased

A report by Lightstone indicates that property transactions within two kilometres of Gautrain stations increased from 3.8 per cent to six per cent between 2000 and 2007. Median prices for areas immediately surrounding the Gautrain nodes in Johannesburg for the same period have continually been above the city's overall median prices. In 2007, the median price in areas within two kilometres of a Gautrain station was R849 000, while those areas within two to three kilometres of a station recorded a median price of R760 000, compared to the overall median price of R625 000 for Jo'burg.

"The Gautrain has kick-started renewed interest in development in Rosebank and property prices can be expected to escalate in this area," says Barbara Jensen, spokesperson for the Gautrain consortium.

She adds that the frequent, reliable and punctual mode of transport offered by the Gautrain will be very attractive to developers, particularly in light of the ever-increasing levels of traffic congestion.

From a property expert's perspective, Rosebank Station is, without doubt, a positive development. "Increased demand and a lack of supply in the commercial market have kept Rosebank on an upward curve. New developments can only uplift the look of the area and the dated infrastructure," says RMB Properties' Ryan Herd.

Rosebank will become more desirable

Managing director of Standard Bank Property Finance, Stewart Shaw-Taylor, is also upbeat about the suburb's forthcoming status as a key Gautrain node. "We believe that the Gautrain will inject new life into the area. Rosebank will become a more desirable location in which to live, work and play," he says.

Trafalgar Properties' Andrew Schaefer agrees. "Although there is clearly a short-term impact in terms of road traffic and construction-related inconvenience, I think the long-term benefits are significant. The property sector in Rosebank is buoyant and a number of positive drivers support a strong outlook — the central location, Gautrain station, attractive amenities, positive 'suburb brand', a good road network and access to the highway as well as Jan Smuts Avenue," Schaefer says.

The Gautrain's positive spin-off for property owners in the area means that many commercial and retail property owners are jumping on the bandwagon and undertaking massive upgrades to existing properties. "Rosebank will become one of the two big transport hubs of the north," remarks Ollis, who predicts that Rosebank will eventually eclipse other trendy hubs such as Melrose Arch, Killarney and Cresta as the various Gautrain projects start to roll.

Ollis says that in order to make the Gautrain viable, the City requires the creation of 4000 new residential or business units in the Rosebank node. Responding to this need, the City has increased allowable densities in Rosebank, particularly those close to the station. Properties on both sides of Oxford Road are permitted very high densities; in the case of residential properties, the density may rise to 250 dwelling units per hectare.

In the core of Rosebank the trend towards high-rise apartments will continue. In the areas indicated in the UDF for densification around the node, there will initially be more townhouse-type developments, especially as you move farther away from the node. "The buyers in the flats have historically been older people and single young executives. This profile will change to more sophisticated owners and tenants as each of the properties is redeveloped and commands greater prices," Ollis says.

According to Herschel Jawitz, chief executive of Jawitz Properties, the rejuvenation of Rosebank couldn't have come at a better time. Over the last few years Rosebank has lost ground as a commercial, retail and residential node to areas like Sandton. "Until recently, there has been very little upgrading of the buildings as compared with Sandton. I think that Rosebank is experiencing a revival largely based on the potential positive impact of the Gautrain."

Revival is evident in residential, retail and commercial developments underway

According to Jenny Alexander, this revival is evident in some of the current residential, retail and commercial developments underway. Just some of these include refurbishments of residential blocks, redevelopment of The Firs and the Rosebank Hotel and construction of the Monarch Hotel.

What's more, Standard Bank Properties has plans for a major multi-purpose development that include offices and retail components. Another major undertaking is Tiber Property Group's transformation of the site opposite the Hyatt Regency Hotel in Oxford Road into a six-storey development that will eventually include cafés, showrooms and offices.

The Zone Phase II is a R623-million, mixed-use project comprising retail space, a 160-room hotel and loft offices. It's being carried out by Old Mutual Investment Group Property Investments (OMIGPI). Brent Wiltshire, a property development executive at OMIGPI, says: "The aim is to create a lifestyle centre that satisfies a combination of living requirements and complements nearby developments." "All this activity shows confidence in the future and indicates that Rosebank is a sought-after location for commercial, retail and residential accommodation," says Alexander.

This is all very well for property investors, but how do the existing Rosebank residents feel about having a major construction site on their doorstep? "The Gautrain has had some negative short term impact in terms of road diversions and the partial closure of Oxford Road. This may have had a small impact on the accessibility of the area, but my impression is that the traffic flow is now working well," says the Rosebank Action Group's Judith Briggs.

At the Rosebank Rooftop Market and the African Craft Market, stall owners are also upbeat about the Gautrain and are expecting business to pick up in 2010. Eric Neelson, the owner of Cranks restaurant, maintains that any form of construction in the area is a good thing.

One downside to the development boom is that construction is making life difficult for the existing tourist trade in Rosebank. As one manager at the Hyatt puts it, "It is difficult to give guests a quiet, restful environment with blasting going on outside their windows. However, people are mainly excited about the Gautrain."

Kingsmead College, one of Johannesburg's elite private girls' schools, has the Rosebank Station construction site almost in its backyard. Nonetheless, the school remains positive. "Kingsmead College has seen the construction of the Gautrain as a valuable educational opportunity for all our girls," says the college's headmistress, Lisa Benning. She adds that her girls 'are fortunate to be witnessing history in the making'. And it would appear that the majority of those involved with Rosebank in some way consider themselves equally blessed to be part of the suburb's revival.

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