SAPOA clears up rumours
According to Sapoa the recent media reports alleging that the draft proposal on inclusive housing had been finalised without proper industry consultation are incorrect. The draft proposal considers policy approaches to mixed-income residential developments. Tsakane Shilubane, the legal services manager at Sapoa, says that the draft proposal is still in discussion. Mr Shilubane stated that Sapoa was given an opportunity three weeks ago to comment on the draft proposal before it entered into the formal legislative approval process. He said that Sapoa is at this stage requesting comments from its developer members. Mr Shilubane further pointed out that the government had assured Sapoa that they would be consulted during the policy framework finalisation process.
Joburg in bid to overturn ban on city evictions
Last year the Johannesburg High Court prohibited the City of Johannesburg from evicting 300 people from 6 buildings in the CBD. On Tuesday, the 20th of February the City of Johannesburg’s appeal against this decision was heard in the Supreme Court of Appeal.
The City maintained that the buildings were a health, fire and safety hazard and based its application for eviction on the National Building Regulations and Building Standards Act 103. The eviction order was however refused in the High Court by Judge Jajbhay who stated that the City had a duty in terms of the Constitution to first find the people alternative accommodation.
The decision antagonised Johannesburg Mayor Amos Masondo and property owners who foresee squatters and property hijackers hiding behind the ruling. Both the Centre for Applied Legal Studies and the Centre on Housing Rights and Evictions have supported the ruling stating that adequate housing is needed and not evictions. Nthatisi Modingoane, spokesman for the City of Johannesburg says that the City is working on a housing plan for the poor. The ruling of the Supreme Court in this matter could result in significant and far reaching changes in CBDs throughout South Africa.
New agency will try to hasten housing delivery, says minister
With the 2014 deadline for the eradication of all informal settlements approaching quickly the government has established a new housing development agency to hasten the delivery of houses. The Housing Minister, Lindiwe Sisulu said that the agency would identify and purchase land as well as manage and co-ordinate the development of housing nationally. According to the Minister the approval from local and provincial governments was often slow resulting in developers and bankers having difficulty building low-income housing. She admitted that some municipalities have been slow in delivering land availability agreements and that in most cases municipalities did not have the capacity to facilitate housing delivery. The Minister said that she was working with the 2010 organising committee and liaising with other governments in order to negotiate the importing of materials needed to build houses.
Total returns on retail property expected to weaken
John Loos, a property strategist at FNB Commercial Banking believes that the decline in retail property this year predicted by FNB will not last long. According to Loos the increasing signs of declining fundamentals in the retail property sector became evident last year. Loos pointed out that there was a noticeable increase in the area of shopping space completed last year in a delayed response to the consumer boom together with a predicted tapering off in retail sales growth. Loos believes the delay between demand and completion of shopping centres is unfortunate, as often the consumer demand has declined significantly by the time the centres are completed. According to Loos completed retail space had accelerated last year and may well continue to do so this year. While Loos does expect a decline in total retail space return this year he predicts that the continued accelerated growth in the economy will mean that demand will quickly catch up to supply.
Old Mutual’s shopping centres record 30% surge in sales
Shopping Centres in Old Mutual Property Group’s portfolio experienced a 30 % increase in sales. Colin Young, head of institutional investments, said the 12% increase in spend per head for the year across the portfolio was a sign of the positive retail trade. Old Mutual Property Group’s head of research, Belinda Clur stated that the positive trading conditions were being supported by the stable economic environment and the continued growth in the middle class.
The Donald’s sidekick to fire it up at Sun City
Carolyn Kepcher, known by most South Africans for her role as Mr Trump’s “sidekick” in The Apprentice, will be the keynote speaker at this year’s 39th annual Sapoa Convention. The theme of this year’s Convention is “The Road to 2010 – Masterminding the next five years”. The Convention and Property Exhibition will run from the 16th to the 18th of May at Sun City. Visit www.sapoaconvention.co.za.
2010 may sideline homes for poor
The housing minister, Lindiwe Sisulu has warned that the massive investment in the building of electricity generation plants, stadiums and airports in preparation for the 2010 World Cup may well disrupt SA’s plans to build hundreds of thousands of new homes for the poor. The executive director of the SA Association of Consulting Engineers, Graham Pirie suggested that the situation be managed creatively by the industry. He recommended that retirements be delayed, people are brought back from overseas and that the development and supply of local skills is accelerated. Tony Twine, an economist at Econometrix believes that SA will have to import skills to address the skills shortage problem. This will however introduce a currency problem. Pierre Fourie, chief executive officer of Master Builders South Africa pointed out that investment in construction had double over the last 5 years, which he sees as an indication that the industry can cope with the extra work.