2010 Soccer World Cup Impact On Property

In the early 1900’s nobody wanted to live near the railway line or even near a railway station. It was noisy and the black dust from the steam engines was just awful. With the implementation of the Gautrain I was wondering what impact would it have on the nearby properties. Will it be positive or negative? The past few years with the building and implementation (not even completed) of the Gautrain it has already proved to have a positive impact on the nearby properties because traveling time in our modern world is vital and modern trains are less noisy and surely not messy.

The same question applies to the newly built soccer stadiums. How will the stadiums impact on the properties in its direct vicinity?

According to The Property Professional (“On the ball” article, Sept-Oct 2009 issue, pages 22 – 23) the South African Property Transfer Guide (SAPTG) data analysis indicated that investors saw potential in properties within the immediate vicinity of the stadiums. The stadiums appear to be value magnets and stadiums with neighbouring areas of urban decay present bargain opportunities in the short and long term because the entire area will benefit from the infrastructural upliftment from Government’s commitment to the event. This has already been proven. Research has indicated that properties within 0-2km of Ellis Park showed a 111% increase in value between 2005 and 2008. The increase in value dropped sharply outside the 2km radius.

The Property Professional mentioned further that Dieter Deppisch, the national manager of data analysis with SAPTG, said it remains to be seen if the stadiums will prove to be substantial contributors to the economy in the medium to long term. Risks included factors such as the ongoing effects of the local and international economic turmoil, high maintenance costs, and fiscal management at municipal level.

We must keep in mind that buying property is a long-term investment and the man in the street (me and you), can make or break it for foreign investors during the Soccer World Cup. Visitors can leave with an impression that SA is good place to invest or they will never be back because they were ripped off!