Value Creation Around Transport Infrastructure In South Africa : The Case Of Gautrain
In the South African context, the infrastructure backlog is ever increasing and, with limited government funding, the reality is that the gap is unlikely to close. There are, however, numerous value capturing mechanisms applied elsewhere in the world that can help with infrastructure funding, but few or none have been applied in a South African context. This paper reviews the literature on value creation and capturing, and explores whether or not it can be applied in transport infrastructure additions in South Africa. The paper seeks to understand potential value creation in the case study of the Gautrain project in Gauteng. Secondary data is used to evaluate the effect of the newly constructed rail stations on adjacent residential property values. This is done by investigating three variables, namely: distance to station; analysis year; and housing type. The data used in the analysis is validated by means of an ANOVA analysis, which is assessed by the F-test and a consequent Tukey HSD test. The paper illustrates that value creation is possible in some South African contexts. Stations such as Pretoria and Johannesburg indicated a direct correlation between increased property values and infrastructure additions, and can therefore act as justification for value creation and consequent value capture.