When evaluating property affordability, standard financial modelling focuses heavily on five metrics: purchase price, bond repayments, municipal rates, body corporate levies, and utility tariffs.
Yet, as South Africans face another sharp escalation at the pumps with petrol climbing by R1.34 a litre and diesel surging up to R3.15 today, September 2, another, often undercalculated variable is reshaping property values: the cost of commuting.
Farhana Modan, a property practitioner from Evolate Properties, says a home further away from city hubs may offer more space or a lower purchase price, but if it means significantly more time and money spent commuting every month, the actual property saving has to be scrutinised.
She says proximity to employment hubs, schools, transport routes, shopping and everyday amenities is not simply convenient.
“It can have a real financial value. I'm not suggesting buyers should suddenly abandon properties further from the city. Every household has different priorities.”
She added that the property affordability question needs to go beyond the property's price and other associate factors. With prospective buyers also asking: "Can I afford the lifestyle that comes with its location?"
Fuel costs and household affordability
Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond, says that although South Africa’s property market continues to show resilience, increased fuel costs will need to be factored in.
Living far from work, school and other opportunities will become increasingly expensive if transport costs rise, he says.
Lower-income households will certainly feel the pinch as they have to spend more money than anticipated on transport, Potgieter says. Fuel costs can also affect food prices, placing further strain on household budgets, he adds.
Existing homeowners may need to make adjustments to keep up with their monthly repayments if they have to allocate more money to transport costs.
“Buyers applying for a bond will also have to factor the rising cost of fuel into their calculations. If they commute to work, they need to consider how much of their monthly income will be spent on transport costs. It may mean qualifying for a smaller bond which helps keep monthly repayments manageable and sustainable over the long term.”
Possible impact on inflation and interest rates
According to Potgieter, rising fuel costs may also affect the country’s inflation outlook and the pace of interest-rate relief.
This latest fuel increase could add to inflationary pressures and may influence the Reserve Bank’s future decisions. Higher interest rates would affect affordability for many buyers, particularly first-time buyers entering the market.
BetterBond says its data puts the average income of first-time buyers at around R50,000. Based on the current prime lending rate, the company says this would enable a new buyer to qualify for a R1.5-million bond, requiring a monthly bond repayment of about R15,000.
If a substantial amount of that monthly income needs to be spent on fuel or transport, a first-time buyer will have less to spend each month on a bond, the company says.
Potgieter says banks have been adjusting their deposit requirements in response to changing inflation and interest-rate expectations. Average deposit levels were lowered in June, only to rise again in July, when another interest-rate increase was expected but did not materialise.
“In April 2026, the required deposit for first‑time buyers rose 38% quarter‑on‑quarter, affecting those entering the property market for the first time the hardest. By mid‑2026, the average first‑time buyer deposit had recovered to about R163 000 (down 29% from R230 000 in March 2024).”
Location could become an even bigger factor
Rising fuel costs could increase demand for properties close to economic hubs, work opportunities and transport networks, says the bond-origination group.
Properties farther from employment centres and amenities could become less attractive to some buyers, even if they have lower purchase prices.
“In other words, the apparent saving one could make by buying a home that is not in a sought-after or high-value area could be eclipsed by the escalating cost of getting to work. It could be that instead of buying further away, people will opt to rent so that they can live closer to work or school. Conversely, buyers who have the means will pay a premium for properties close to the amenities they desire.”
A cheaper property may not be cheaper to live in
Property experts say prospective buyers should consider the total cost of occupancy. Sustained fuel-price increases can add to inflationary pressures and influence the interest-rate environment, putting further pressure on property affordability and mortgage repayments. Higher input and service costs can also filter through to rates, levies, rentals and other property expenses.
Justin Davidson, portfolio manager at Anchor Capital, said: “From my own experience in Cape Town, we have seen people increasingly gravitate towards areas that reduce the need for lengthy daily commutes. That demand has contributed to affordability pressures in well located suburbs, with a consequential spillover into surrounding areas. School zoning has also become an important driver of demand, with proximity to good educational amenities supporting property prices in areas that may historically have been considered further out.”
given.majola@nationalmg.co.za