- Rising fuel prices are expected to influence housing decisions and commuting patterns.
- Remote and hybrid work debate likely to intensify as costs increase.
- Affordable and decentralised suburbs may see growing demand.
South Africans are once again being pushed to rethink how and where they live. Sharp fuel price hikes are expected in early April, driven by rising tensions around the Strait of Hormuz.
While the pain will first be felt at the petrol pump, experts warn the knock-on effects could run much deeper, changing the property market and the way people live day-to-day.
Paul Stevens, CEO of Just Property, says fuel costs do far more than dent transport budgets. “Fuel isn’t just a budget item, it shapes behaviour,” he explains. “When the cost of getting from A to B jumps overnight, people rethink their routines, their work patterns, and their housing decisions.” Stevens points to the COVID-19 pandemic as a clear example of how quickly behaviour can shift under pressure, and warns that similar changes could play out again, even if the circumstances are very different.
Economist John Loos shares this concern, linking fuel price uncertainty to wider economic pressures. “It wasn’t surprising that the South African Reserve Bank Monetary Policy Committee kept its policy repo rate unchanged yesterday, given the huge inflation uncertainty emanating from the Middle East conflict around Iran,” he says.
Loos warns that further interest rate cuts may now be off the table. “Depending on what happens in the Middle East, the SARB may relook at interest rates when they next meet in May, but it’s probably safer to accept that there won’t be any more cuts this year.”
Remote and hybrid work pressures return
The rising cost of commuting is expected to bring back a debate that never really went away after the pandemic. Loos says that while many employers have pushed for a return to the office, economic realities may force a rethink. “While the employers’ arguments that often focus on the human culture and connection benefits of in-person contact have merit, the remote work arguments are particularly powerful when it comes to reducing unproductive commuting time and financial costs,” he says.
He adds that if fuel prices stay high, workers will push back. “I believe we should expect the debate around remote and hybrid work to escalate once more, should fuel prices remain elevated for some time, with the employee group that is able to operate in a flexible way likely pushing for greater flexibility,” he says.
This pressure is expected to feed into bigger conversations about housing affordability, access to jobs, and whether public transport can really pick up the slack.
Property market shifts and decentralisation
As fuel costs rise, what buyers and renters want in a home is already starting to change. “Homes with a study, a converted garage, a second lounge will become more sought after,” Stevens says. “Fibre-ready units with designated workspaces and privacy could quickly move from nice to haves to standard expectations,” he adds.
If hybrid work becomes the norm again, the need to live near the CBD could ease. That would likely push demand towards more affordable suburbs further out, where space and flexibility come at a lower price.
Stevens says the areas likely to benefit most are those that balance affordability, good connectivity, and less dependence on daily commuting. Think of suburbs with solid fibre coverage, easy access to main roads or transport routes, and room for mixed-use development.
Loos also raises concerns about affordability in high-demand cities like Cape Town. “All other things being equal, higher transport costs are likely to drive a higher number of people to seek accommodation closer to places of work,” he says. But he is quick to point out that for many South Africans, moving closer to work simply is not an option, given how expensive property has become.
A market shaped by cost and flexibility
Together, rising fuel costs, economic uncertainty, and changing work habits are likely to push the property market into a new phase. Stevens says flexibility will become a key driver of property value. “Pay attention to how people live, not just where they live,” he says.
“The homes that will hold value in the next decade are the ones that can flex with changing work patterns, rising transport costs, and shifting urban dynamics,” he adds.
As South Africans brace for higher fuel costs, the message from experts is simple. Where you live and how far you travel is no longer just a lifestyle choice. It is becoming one of the most important financial decisions people make.
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