Matjhabeng Nketoana Lejweleputswa District Municipality N1

Working for integration Dr Kenneth Kaunda District Free State Municipality

Maquassi Ngwathe Hills

Fezile Dabi Nala District Municipality

Moqhaka

Matjhabeng Nketoana Lejweleputswa District Municipality N1

Tswelopele Dihlabeng

Thabo Mofutsanyane Setsoto District Municipality Tokologo xxxx xxxxMasilonyana

Sources: Esri, USGS, NOAA

Matjhabeng – Free State

Housing Market Overview Human Settlements Mining Town Intervention 2008 – 2013 The Housing Development Agency (HDA) Block A, Riviera Office Park, 6 – 10 Riviera Road, Killarney, Johannesburg PO Box 3209, Houghton, South Africa 2041 Tel: +27 11 544 1000 Fax: +27 11 544 1006/7

Acknowledgements The Centre for Affordable Housing Finance (CAHF) in Africa, www.housingfinanceafrica.org Coordinated by Karishma Busgeeth & Johan Minnie for the HDA

Disclaimer Reasonable care has been taken in the preparation of this report. The information contained herein has been derived from sources believed to be accurate and reliable. The Housing Development Agency does not assume responsibility for any error, omission or opinion contained herein, including but not limited to any decisions made based on the content of this report.

1. Frequently Used Acronyms 1

2. Introduction 2

3. Context 5

4. Context: Mining Sector Overview 6

5. Context: Housing 7

6. Context: Market Reports 8

7. Key Findings: Housing Market Overview 9

8. Housing Performance Profile 10

9. Market Size 16

10. Market Activity 22

11. Lending Activity 32

12. Leverage 37

13. Affordability Profile 40

14. Rental Index 44

15. Key Concepts 46

16. Source List 51

1. Frequently Used Acronyms CAHF – Centre for Affordable Housing Finance in Africa GDP – Gross Domestic Product GVA – Gross Value Added HDA – Housing Development Agency HPI – Housing Performance Index IDP – Integrated Development Plan LM – Local Municipality NU – Non-Urban, StatsSA subplace designation RDP – Reconstruction and Development Programme SDF – Spatial Development Framework SP – Subplace StatsSA – Statistics South Africa

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 2. Introduction

The Housing Development Agency (HDA) is a national public development agency that promotes sustainable communities by making well-located land and buildings available for the development of human settlements. As its primary activity, the HDA assembles and releases state, private and communal land and buildings for development. In addition, the HDA provides project delivery support services to organs of state at local, provincial and national levels.

In setting the agenda and asserting its role in the housing continuum, the HDA realised that there is a gap in the provision of accurate and easy-to-understand information regarding the property market, particularly in previously overlooked areas including the mining towns.

The development of this report is a result of this gap. It aims to explore and present an overview of the formal housing markets in Matjhabeng, Moqhaka, Merafong, Randfontein, Westonaria, Thabazimbi, Greater Tubatse, Elias Motsoaledi, Lephalale, Fetakgomo, eMalahleni, City of Matlosana, Mogale City, Ephraim Mogale, Steve Tshwete, Thaba Chweu, Tsantsabane, Ga-Sekgonyana, Gamagara, Kgetlengrivier, Madibeng, Moses Kotane and Rustenburg so as to change perceptions of affordable markets and as such, expand and deliver affordable housing options within South Africa’s municipalities.

The study was undertaken over a three-month period, relying mainly on the high level indicators developed by the Centre for Affordable Housing Finance in Africa which considered the market conditions, existing market size and activity, average prices and values, market growth and lending activity in the area to support a better understanding of the opportunity and the impact of various housing policy interventions. The centre also highlighted the range of opportunities across areas to stimulate the affordable housing market in South African municipalities.

The methodology also included site visits to eMalahleni, Randfontein, Westonaria and Rustenburg so as to confirm findings and to gain more insights about the current housing circumstances.

The report is intended for use by all stakeholders involved in planning including professionals in municipalities, Government officials, private sector, investors, developers and urban planners, for the mission of enticing a range of development options. The report does not address housing supply for the lowest income levels but rather seeks to make the case for expanding the gap market in order to entice private sector engagement more effectively.

2.1 Report Contents

The report covers the following aspects of housing markets through maps, charts and graphs to highlight understanding across the municipality and at the neighbourhood level, where housing markets function.

1. Housing Performance Profile – the pace of growth by suburb, on maps and in charts, as measured by the Housing Performance Index 2. Market Size – total number and distribution of residential properties, households, values and sales prices, key demographic indicators 3. Market Activity – properties, sales and new properties and resales over time 4. Lending Activity – sales and loans by lender 5. Affordability Profile – affordability based on local incomes, compared to sales price, housing gaps and affordability ratios 6. Leverage – the value of equity available for purchasing new homes 7. Rental Index – those areas most prime for quality, dense, professionally managed rental housing

2.2 Definitions and Methodology

For housing supply, title and deeds records were merged at the suburb level, mapped and ranked through the Citymark dashboard. Priority has been placed on actual transaction datasets from familiar sources that can be geocoded to the subplace level, trended over time and updated regularly. For housing demand, StatsSA data was applied as the most consistently collected, widely understood and most common source of demographic data in the Country.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 2.3 Benchmarks

Benchmarks are indicators used to compare performance across areas and are valuable for understanding meaning. Each indicator was created at the local, municipal and national levels in order to measure performance within and across markets. These benchmarks also highlight areas or trends which are outperforming the overall market in certain ways and might be most receptive to a variety of new housing development options.

2.4 Site Visits

As mentioned, the team conducted four site visits to eMalahleni, Randfontein, Westonaria and Rustenburg. These visits provided the chance to confirm findings from the data and chat informally with residents about their current housing circumstances: where they had moved from, where they were currently living and how affordable it was and where they were headed, including their ambitions and concerns. This helps to provide a sense of the housing continuum in the town – what choices residents feel empowered by and what constraints keep them from realising their dreams and aspirations. Residents who were engaged came from informal settlements, brand new RDP homes and a stalled RDP project which had recently been reactivated by the city.

Some of the key insights from these site visits were:

• Residents may not know exactly what their home might be worth but they are very aware that their home has a value, which includes stability and security for themselves and a better future for their families • Many residents use their homes to supplement their own income, including renting shacks and rooms and operating home-based businesses • There might be a relationship between how the houses are handed over and the sense of ownership (as evidenced by improvements to the homes) • Everyone we spoke to understood the importance of a title deed, that the title deed proved (secured) ownership, even if in a few cases, they were not sure of its status or how to get one • Most people mentioned a better future for their children as an integral part of the importance of homeownership • Residents were aware that there is an acute shortage of housing opportunities and that despite having their homes, they were surrounded by others without adequate housing

Many people understood housing markets around them intuitively – where the better houses were closer to jobs and transportation and what the barriers were – the price, the inconvenience and the cash required to access the houses.

2.5 Using this Report

This report is intended to provide a high-level view of the mining town housing markets overall and by neighbourhood, within areas of particular interest by measuring and comparing housing market performance amongst each other and with the municipality. This report highlights connections and implications from the findings that are of significant interest to the HDA. The report does not seek to understand why things are but offers general ideas based on experience with housing markets and new learning about mining town housing markets from these reports.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report The report findings emphasise opportunity as opposed to risk or failure. Opportunities are defined as conditions or indicators within areas which can show:

• The ways in which areas or markets are behaving positively (such as growing more quickly) or showing strength (such as stability and consistency) • The ways in which areas can be connected to common strategies that promote growth, investment or sustainability (such as proximity to transit or density) • A more accurate picture of the real value of areas in ways that can leverage economic investment (such as equity, lending levels and new registrations) • Better ways in which risk can be measured and accounted for (such as timing, scale, or location risk) • A more comprehensive scope or scale of markets, to better estimate and project market intervention (such as property or population size, absorption rates, or patterns of behaviour) • Ways to challenge and overcome those perceptions or assumptions that might stymie investment, or slow growth

This report is not intended to provide a complete final picture of market conditions or demographic circumstances. It does not reflect conditions in the informal market, nor general attitudes. It is not intended to be the last word on market potential but rather the first: how can current conditions present opportunities for better housing options and improved market performance? Where are places that might be performing better in some ways, which might provide areas of opportunity, and how? The highest and best use of this report is to suggest new ways to support the growth of affordable housing in South African mining towns, by exploring and reconsidering areas for new investment, expanding existing investment and promoting policies and programmes which can support and entice that development. It can also imply the impact of ongoing investment and programmes activities.

2.6 About Formal Housing Markets

This report relies on the South African deeds registry as the basis for analysing local housing markets. Thus, the report only measures the formal housing market, which can be defined as those residential properties which have been formally titled to a specific owner or group of owners. While this excludes a large part of the human housing condition in these towns, the advantage of focusing on the formal housing market is that it offers a better understanding of that part of the residential property market which is most opportune for leverage and investment interventions in ways previously not understood.

Taking into consideration the housing backlog from StatsSA, informal settlements and human mobility, housing markets are quite fluid and difficult to measure. Understanding housing markets more completely is one advantage of the titling initiatives recommended by many housing policy and planning advocates across the Country.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 3. Context: Matjhabeng

3.1 Municipal and Regional Context

Key aspects of the city are shown from here for contextual purposes which have been published on the city’s website. These aspects are summarised from its 2014 IDP, to give important insights to the market overall:

• “The Matjhabeng municipal area comprises of the following main towns: Welkom, Allanridge, Hennenman, Odendaalrus, Ventersburg and Virginia” • “Matjhabeng Local Municipality is the hub of mining activity in the Free State” • “The economy of the Matjhabeng Municipality area is centered on mining activities located in and around Allanridge, Odendaalsrus, Welkom and Virginia.” • “A bulk electrical network is well established in the Matjhabeng area” • “Eskom serves all mines and towns in the municipal area; Eskom sells directly to consumers in all the previously disadvantaged areas” • “There is no public transport system operating in Matjhabeng, besides privately- owned taxis”

3.2 Socio-Economic Profile:

The municipality’s current demographic information is drawn from the HDA Municipal Profiles and from the 2001 – 2011 Census Data:

• “Matjhabeng has a population of 406 461 • There was a -0.04% population growth between 2001 – 2011” • “In 2011, over 37% of the population was unemployed and the dependency ratio was 46.9%” • “There are 123 195 households in Matjhabeng, with an average household size of 3.1 people” • “78.5% live in formal dwellings” • “An average of 78.32% of households has flush toilets connected to a sewerage system, piped water inside the dwelling, weekly refuse removal and electricity for lighting”

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 4. Context: Mining Sector Overview

This brief industry profile is provided to help one understand how the mining sector might affect and engage housing in the mining towns. The mining policies are not specific to the towns – that information is not available. This information has been included because of the mineral mined, the regional location or specific city references (this report does not assess programme efficacy or impact).

The Matjhabeng Local Municipality is located in the Free State Province. A total of nine commodities are currently being exploited in the Free State, of which gold and its by-products (uranium, silver, platinum group metals and sulphuric acid) are by far the most important, followed by diamonds and coal.

4.1 Mining Industry Profile

• “Ferrous and base metals are not exploited at all, while industrial minerals play an important role. Revenue from the Free State Province’s mineral products is the fourth highest within South Africa (after Gauteng-, North-West- and Mpumalanga Province), with total sales for 1994 being valued at R7 418 million (R7 037 million in 2000).” • “The larger producing mines in the Free State produce, gold, coal and diamonds.” • “The smaller producing mines in the Free State produce clay, limestone, salt, gypsum, granite and sand and stone aggregate.” • “Commodities with potential for future mining include titanium, zircon, rare earths and thorium.” • “Though a substantial quantity of gold remains in the field, the general lower grades and weak gold prices combined with increasing production costs in real terms, as the deposits are mined at ever-deeper levels, mean that some of the gold mines have become marginal to sub-economic and face closure in the near future.” • “A total of 16 gold mines are still active in the Free State goldfield, namely Beatrix, Matjhabeng, Free State Saaiplaas, HJ Joel, Harmony, among others.” • “The Vereeniging-Sasolburg coalfield ranks 3rd in South Africa in order of importance, while the Free State supplies a saleable output of 10,5% of the national coal output.” • “Two mines are produce coal, namely the New Vaal Colliery (owned by Anglo American) and Sigma Mine, both exploiting bituminous coal.” • “Four mines are currently producing diamonds from Kimberlite rock, namely Samada, Koffiefontein, Salene (Star) and Sonnenberg (Loxton).”

4.2 Housing in the Mining Sector

The remote locations of many mining operations means that mining companies have long histories of providing housing solutions for their employees, from executive management to miners. Different approaches to housing policies vary and are not discussed in specific terms. The knoweledge of the general mine housing policies assists one in understanding the effects on the housing markets in their entirety in the towns. Unlike large metropolitan areas where housing markets grew more organically (with some historical master planning involved), these towns were largely designed intentionally to serve the interests of the mining franchises above them. The following is only indicative of each company’s general approach; the housing models in each town are approached differently and more specific to their context. Essentially, understanding the housing options offered by the mining companies is an important factor in understanding local housing markets.

Matjhabeng is located in the Free State and the primary extractive is diamonds, gold and coal. The prominent mines in the Free State are: Beatrix; Matjhabeng; Free State Saaiplaas; HJ Joel; Harmony; Vaal Colliery (owned by Anglo American); Sigma Mine; Kimberlite rock, Samada; Koffiefontein; Salene (Star) and Sonnenberg (Loxton). Their mine housing policies outline the following:

• “Anglo American committed more than R2 billion to facilitate home ownership and achieve the Mining Charter target of ‘one person per room’ through 2014” • “Anglo American currently offers a number of different housing options, ranging from housing allowances to houses built for employees”

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 5. Context: Housing

The municipality has identified the following challenges and opportunities from its 2012/2016 IDP:

5.1 Housing Challenges:

• ”According to Stats SA, as quoted in the HDA municipal profile, the housing backlog in Matjhabeng was 24 433 in 2011”

5.2 Housing Strategies:

• “Matjhabeng is committed to expanding low-income housing developments and opportunities to ensure dignity and stable housing for the homeless people” • “It is envisaged that in Matjhabeng, all people would be housed and accommodated in integrated and functional sustainable human settlements” • “On a progressive basis and over a long term, all residents in inadequate housing will be able to access affordable, safe and decent accommodation” • “The housing needs at all levels of the housing ladder will be met through accelerated facilitation and supply as well as effective management of a diverse range of products for both purchase and rental” • “A fully functional secondary housing or property market will be available in all parts of Matjhabeng so that all households can realise economic value from investing in their residential assets” • “The quality of existing and future housing stock will be enhanced and maintained. More importantly, there will be increased liability and sustainability of all residential communities with equitable access to green spaces, social and cultural facilities, transportation and economic opportunities and adoption of green- housing practices and technologies” • “Supply bulk services to areas where private developers convert existing hostels to family units with housing.” • “Mobilise well located public land for low-income and affordable housing” • “Eliminate of the housing delivery backlog of units (13 931 backyard shacks and 5 695 informal settlements) through the provision of quality housing and the structured upgrading of informal settlements by 2016” • “Address the fragmented spatial patterns of the past by: revising the spatial development framework annually, prioritising social housing and acquiring strategic land” • “Upgrade 17 informal settlements and 17 greenfield developments by 2016” • “Prioritise land alienation for housing development for middle and higher income market segment”

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 6. Context: Market Reports

HDA Mining Town reports market coverage 6.1 Report Coverage Matjhabeng, Data by suburb of census and formal deeds registry data, 2013 Allanridge SP It is important to keep in mind that Phathakahle SP these reports only cover the formal Loraine Gold Mine Freddies Gold Mine housing market, as captured by the Kutloanong SP Philippi Hestersrus Deeds Registry. Thus, there are four layers of information in the report: Free State Geduld Gold Mine Alma Riebeeckstad SP

Western Holdings Gold Mine Hennenman SP Havengaville 1. Total StatsSA suburbs Flamingo Lake Bronville St Helena Gold Mine Matjhabeng NU Whites SP 2. Suburbs with residential properties

Jurgenshof Unisel Gold Mine Saaiplaas Ventersburg SP Harmony Gold Mine Harmony Mmamahabane SP 3. Suburbs with residential properties Virginia SP Virginia Gold Mine Blaauwdrift SP Merriespruit sold Kitty Merriespruit Gold Mine Meloding SP 4. Suburbs with residential properties

Virginia Mine SP sold with a bond

Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015.

Data coverage This map shows all the census suburbs 1 4 in the town (pink) to all the suburbs with residential properties with bonded sales (dark red). The chart shows what percentage of the town has a formal Matjhabeng Housing Market Report Coverage residential housing market. This may help explain some of the maps and Total Census Subplaces (SP’s) 77 why some suburbs are included and Total SP’s with registered residential 65 84% some may be omitted. As an example, properties information on bonded sales will only Total SP’s with sales 58 75% reference suburbs in which bonded sales took place. Total SP’s with bonded sales 56 73%

Market Area by the Numbers Suburbs 77 Suburbs with residential properties 65 Households 123 196 Residential properties 64 526 Housing Backlog 24 442 Backlog as percent of all properties 38 % Households to properties ratio 1.91 Average monthly income R 9 200 Average property value R 276 000 Average sales price R 354 000 Total residential value R 17.7 billion

Source: Centre for Affordable Housing Finance in Africa, Lightstone, StatsSA

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 7. Key Findings: Housing Market Overview

Matjhabeng’s housing market has experienced downward growth after three years of steady growth. The city’s growth is one of the slowest of the 22 mining towns. This may be strongly affected by the drop in bonded sales, a decrease in churn rates and underdevelopment of some areas within the municipality – mining activity, which is not investigated in this report, may also be a factor. This does, however, create an opportunity for markets to be carefully assessed in order to best position the next wave of growth.

Matjhabeng’s affordability ratio is 1.4 and is below the national average of 3 and the mining town average of 2.8. This means that it takes 1.4 times the average monthly income to afford the average house in Matjhabeng. Matjhabeng’s ratio is the second lowest of the 22 mining towns – although 6 of the 58 subplaces do not have sales prices to determine affordability ratios. Despite an average monthly income, there remain large disparities among incomes and affordable housing access in certain areas within the municipality. This may prioritise housing strategies and solutions which propose creative financing tools and techniques to reduce financial barriers (such as down-payments, interest rates and principal requirements) as well as unlocking equity, rather than simply trying to push costs down.

26% of the properties in Matjhabeng are Government-sponsored. These properties have high percentages of equity and as such, present an important opportunity to leverage that investment in affordable housing in the years ahead, as owners seek to sell and move up the housing continuum if opportunities are positioned properly. Average equity in these areas doubles purchasing power, putting moderately priced housing within reach of lower-income families. This situation can be used to drive developers to build more gap housing and financiers to finance low-priced acquisition loans.

Generally, Matjhabeng’s housing market has considerable diversity and integration of residential properties of varying values. Property types are predominantly freehold. There has been notable sales activity throughout the municipality but properties are generally transacting below their value. Formal mixed-income housing development provides adequate returns for developers while providing lower- income homes and creates a market less reliant on Government and mining intervention.

Matjhabeng has experienced an incremental increase in lending from all lenders, including non- traditional lenders. With the presence of 26% Government-sponsored units and high average equity for those properties, it will be an important strategy to encourage traditional and new lenders to develop creative loan programmes targeting those homeowners in order to make it easier for them to sell their homes, unlock the value of those homes and allow owners to move up the housing continuum.

The opportunity for rental housing development within Matjhabeng is strong within specific areas, enhanced by the high number of informal settlements and the high rental percentages by mine employees. Data indicates that 23% of households are renting. Those areas with greater density, modest incomes and affordability challenges are more likely to support quality, professionally managed, affordable rental housing. Rental housing also provides flexibility to employers and workers as mining markets expand and contract from time to time.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 8. Housing Performance Profile

8.1 Key Findings: Housing Performance Index

This recent decrease has created an opportunity for markets to be carefully assessed in order to best position the next wave of growth. Housing options are not currently diversely distributed across the municipality.

8.2 Policy Implications

With a market declining like Matjhabeng, meeting housing demand will be a crucial factor in stabilising the town through this period of decline. In slow-growth neighbourhoods, where most of the lower-priced housing currently exists, housing will need to be built more affordably but will need to be situated well to better integrate housing markets. Site development initiatives should include rental housing to meet the increased demand.

8.3 Quick Definitions:

Housing Performance Index (HPI): provides an understanding of local housing market performance by tracking six key indicators which most effectively convey fundamental components of real estate markets and are then compared to the results for the entire municipal property market to determine areas of growth or strength relative to the entire metro.

Housing Performance Profile: this describes the housing market performance of local areas as growing (those areas where the index is 6.5 or higher), stable (the index is 4 or higher) or slow (the index is less than 4) compared to the metro in which it is located.

Formal Housing Market: residential properties that are registered on the South African deeds registry. This does not include informal settlements or other houses otherwise not on the deeds registry.

Indicators: suburb-level measures used to convey a more complete understanding of housing markets, sometimes a point of data (such as number of properties), or a calculated factor (such as the housing index or the affordability ratio).

Housing Continuum: a range of housing options which are available to a wide range of income levels, budgets, housing types and ownership opportunities.

Bonded Sales: the total residential properties that were transacted with a bond collateralised or secured by that property.

New Registrations: residential properties that have never appeared on the deeds registry before. This is an important indicator of the growth of a market, whether the property has just been built or was built previously and never registered.

Churn: an indicator of the sales activity within an area similar to turnover, it is the number of residential sales transactions divided by the total number of properties.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Housing Performance Index 8.4 The Housing Performance Matjhabeng, 2013 Market growth of six key housing market indicators, compared to the metro Index (HPI)

This map identifies the Housing Performance Profile Index by suburb (top) and total residential Allanridge SP properties (bottom), to provide a sense of Phathakahle SP how local property markets are performing compared to the metro as a whole. The housing Kutloanong SP performance index (HPI) provides a glimpse of the Ross Kent North Ou Dorp formal housing market only and does not include Philippi Thelma Hestersrus Mimosa Park Ross Kent South any demographic information. The weights were determined by how well the indicator reflects Rheederpark Riebeeckstad SP Flamingo Park activity, increased investment and demand (and Western Holdings Gold Mine Thabong SP1 Thabong Ext15 Thabong SP2 how reliably the indicator can be measured). Dagbreek Thabong Ext13 Bedelia Havengaville Voorspoed Thabong SP3 Lake Veiw Whites SP Hennenman SP Bronville This information is useful in understanding President Brand Gold Mine how the formal market is behaving (which is Phomolong SP St Helena Gold Mine Saaiplaas influenced by the presence of mines, informal Ventersburg SP Harmony settlements and the people who move in and Harmony Gold Mine

Tswelangpele SP around the towns). This picture is intended to Virginia SP Virginia Gold Mine Merriespruit Mmamahabane SP help one understand how key housing sector Kitty Merriespruit Gold Mine partners (developers, investors) seek and Meloding SP measure opportunity, in order to better inform and coordinate Government planning processes

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds reg- and private sector motivation. istry.

Housing Performance Profile Growing “Growing” suburbs are areas which exceed Stable Slow the metro’s rate of change in any four of six key Null market indicators. “Stable” areas meet or beat the metro in at least three indicators and “Slow” Housing Performance Index areas are growing at rates less than the metro in Matjhabeng, 2013 Market growth profile by suburb, with property volume two (or fewer) of the six indicators. While an index provides quick understanding, it is important to look more closely at the indicators themselves to Phathakahle SP understand more clearly the underlying factors affecting market growth and stability.

Kutloanong SP Thelma Ross Kent South CAHF Housing Performance Index Riebeeckstad SP Indicator Measured Implies Weight Rheederpark Flamingo Park Thabong Ext15 Western Holdings Gold Mine Dagbreek Thabong SP2 Price Average sales Appreciation 25% Thabong Ext13 Hennenman SP Bedelia Havengaville price Thabong SP3 Lake Veiw Voorspoed Bronville Value Average Appreciation 25% Naudeville Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP property value

Saaiplaas Transac- Number of Demand 15% Harmony Gold Mine Harmony Ventersburg SP tions sales Tswelangpele SP Virginia SP Virginia Gold Mine Merriespruit Percent Bonds per Investment 15% Merriespruit Gold Mine Kitty bonded sales

Meloding SP Churn Repeat sales Activity 10%

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. as a percent Total Residential properties Housing Performance Profile of total 0 Growing 2000 Stable properties 4000 Slow 6000 Null New New Growth 10% 8000 10000 Properties properties added to the registry

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Housing Performance Index Trends Matjhabeng, performance over time relative to the metro, 2007 -2013 9.0 7.5 7.5

Allanridge SP 5.0 3.5 3.5 6.5 5.0 5.0 6.5 Bedelia

1.0 1.0 6.5 8.0 Bronville 2.5 4.0 4.0 2.5

Dagbreek 3.5 4.0 3.5 1.0 4.0 2.0

5.0 5.0 Doorn 1.0 1.0 2.5 1.0 6.5 5.0 Flamingo Park 1.0 4.0 1.0 3.5

4.0 Harmony 4.5 5.0 1.0 1.0 0.0

Harmony Gold Mine 0.0 1.0 0.0 1.0 0.0 0.0

5.0 Havengaville 5.0 3.5 5.0

2.5 3.5

5.0 Hennenman SP 4.0 3.5

1.0 2.5 1.0 8.0 6.5 6.5 Hestersrus 5.0 2.5 2.5 6.5 6.5 Jan Cilliers Park 4.0

1.0 3.5 1.0 6.5 7.5 5.0 Jim Fouchepark 5.0 1.0 2.5

5.5 6.5 Kitty 4.0 3.5 0.0 1.0 8.0 6.5 9.0 Kutloanong SP 4.0 2.5 2.5 6.5 Lake Veiw 3.5 4.0 1.0 1.0 4.0

Matjhabeng NU 4.0 2.5 0.0 1.0 0.0 2.5

6.5 6.5 6.5 6.5 Meloding SP 6.0 1.0 7.5 6.5 Merriespruit 5.0 3.5 1.0 1.0

Merriespruit Gold Mine 2.5 2.5 2.5 2.5 2.5 2.5 6.5 6.5 Mimosa Park 3.5 0.0 2.5 0.0

Mmamahabane SP 2.5 2.5 2.5 2.5 2.5 2.5 6.5 6.5 Naudeville 4.0 2.0 1.0 1.0

5.0 Ou Dorp 4.0 3.5 2.5 3.5 3.5 6.5 Housing Performance Index Trends Matjhabeng, performance over time relative to the metro, 2007 -2013 Phathakahle SP 2.5 1.0 2.5 9.0 7.5 7.5 3.5 0.0 Allanridge SP 5.0 6.5 6.5 3.5 3.5 Philippi 1.0 2.5 6.5 1.0 0.0 5.0 5.0 6.5 Bedelia 7.5 5.0 4.0 Phomolong SP 5.0 1.0 1.0 2.5 6.5 8.0 2.5 Bronville President Brand 2.5 4.0 4.0 2.5 Gold Mine

7.5 Dagbreek 3.5 4.0 3.5 6.5 6.5 1.0 4.0 2.0 Reitzpark 5.0 2.5 3.5 5.0 5.0 10.0 Doorn 6.5 1.0 Rheederpark 1.0 2.5 1.0 3.5 4.0 6.5 2.5 2.5 5.0 Flamingo Park 4.0 5.0 1.0 Riebeeckstad SP 4.0 3.5 1.0 3.5 1.0 4.0 1.0 4.0 9.0 Harmony 4.5 5.0 7.5 1.0 1.0 0.0 Ross Kent North 3.5 5.0 3.5 3.5 Harmony Gold 7.5 9.0 Mine 0.0 1.0 0.0 1.0 Ross Kent South 0.0 0.0 2.5 5.0 2.5 3.5 5.0 6.5 7.5 Havengaville 5.0 3.5 5.0 Saaiplaas 5.0 2.5 3.5 2.5 2.5 2.5 5.0 6.5 Hennenman SP 4.0 3.5 6.0 6.0 Sandania 5.0 1.0 2.5 1.0 3.5 3.5 8.0 6.5 6.5 6.5 6.5 Hestersrus 5.0 Seemeeu Park 5.0 4.0 2.5 2.5 0.0 3.5 6.5 6.5 6.5 6.5 Jan Cilliers Park 4.0 St Helena 5.0 1.0 3.5 1.0 3.5 1.0 1.0 6.5 7.5 5.0 Jim Fouchepark 5.0 St Helena Gold Mine 1.0 2.5

5.5 6.5 Kitty 4.0 3.5 Thabong Ext1 5.0 3.5 2.5 1.0 2.5 0.0 1.0 3.5 8.0 6.5 9.0 Kutloanong SP 6.5 5.0 Thabong Ext2 2.5 4.0 1.0 2.5 2.5 3.5 3.5 6.5 6.5 Lake Veiw 3.5 4.0 4.0 Thabong Ext3 4.0 1.0 1.0 4.0 5.0 0.0 2.5

7.5 8.0 Matjhabeng NU 5.0 4.0 2.5 Thabong Ext4 0.0 1.0 0.0 2.5 4.0 3.5 4.0 6.5 6.5 6.5 8.0 8.0 6.5 Meloding SP 6.0 Thabong Ext5 5.5 5.0 1.0 2.5 2.5 7.5 6.5 8.0 6.5 Merriespruit 5.0 Thabong Ext6 5.0 1.5 3.5 1.0 5.0 1.0 2.5

Merriespruit Gold 5.5 6.5 8.0 Mine Thabong Ext7 2.5 2.5 0.0 1.0 2.5 2.5 2.5 2.5 2.5 6.5 6.5 8.0 6.5 Mimosa Park Thabong Ext8 4.0 3.5 5.0 0.0 2.5 0.0 2.5 2.5 6.5 Mmamahabane SP Thabong Ext9 5.0 2.5 2.5 4.0 2.5 2.5 2.5 2.5 2.5 2.5 2.5 6.5 6.5 6.5 6.5 4.0 5.0 6.5 Naudeville Thabong Ext10 2.0 2.5 1.0 1.0 2.5

5.0 4.0 Ou Dorp Thabong Ext11 2.5 3.5 2.5 2.5 0.0 2.5 3.5 3.5 2.5 2.5 6.5 12 Thabong Ext13 4.0 Phathakahle SP 4.0 2.5 1.0 2.5 2.5 3.5 0.0 2.5 2.5 2.5 6.5 6.5 The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 4.0 Philippi Thabong Ext14 5.0 1.0 1.0 2.5 2.5 1.0 0.0 2.5 2.5 7.5 5.0 5.0 4.0 6.5 Phomolong SP 5.0 Thabong Ext15 2.5 2.5 2.5 2.5 2.5 2.5 8.0 5.0 President Brand Thabong SP Gold Mine 4.0 4.0 2.5 0.0 7.5 6.5 6.5 Reitzpark 5.0 Thabong SP1 2.5 3.5 10.0 6.5 Rheederpark Thabong SP2 2.5 2.5 4.0 1.0 3.5 2.5 2.5 2.5 2.5 2.5

5.0 6.5 6.5 Riebeeckstad SP 4.0 3.5 Thabong SP3 1.0 4.0 1.0 2.5 2.5 2.5 2.5 9.0 7.5 Thelma 4.0 3.5 Ross Kent North 5.0 3.5 5.0 3.5 3.5 1.0 2.5 2.5 7.5 9.0 Tswelangpele SP 3.5 Ross Kent South 2.5 2.5 2.5 5.0 2.5 2.5 2.5 2.5 3.5 9.0 6.5 7.5 Ventersburg SP 6.0 3.5 5.0 Saaiplaas 5.0 4.0 2.5 2.5 2.5 2.5 6.5 6.0 6.0 Virginia Gold Mine Sandania 5.0 3.5 3.5

6.5 6.5 4.0 5.0 Virginia SP 2.5 5.0 Seemeeu Park 1.0 4.0 2.0 0.0 0.0 3.5 6.5 6.5 5.5 Voorspoed St Helena 5.0 1.5 1.5 0.0 0.0 2.5 3.5 1.0 1.0

3.5 3.5 St Helena Gold Welkom Central 3.5 1.0 Mine 2.5 2.5

Western Holdings 2.5 3.5 Gold Mine 4.0 Thabong Ext1 5.0 2.5 0.0 0.0 0.0 1.0 2.5 0.0 3.5

6.5 5.0 Whites SP Thabong Ext2 1.0 2.5 3.5 3.5 2008 2009 2010 2011 2012 2013 6.5 Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. Thabong Ext3 4.0 4.0 Growth Profile 5.0 0.0 2.5 Growing Stable 7.5 Slow 8.0 5.0 Null Thabong Ext4 4.0 3.5 4.0 8.0 8.0 Thabong Ext5 5.5 5.0 2.5 2.5 8.0 6.5 Thabong Ext6 5.0 5.0 1.5 2.5

5.5 6.5 Thabong Ext7 8.0 0.0 1.0 2.5

8.0 6.5 Thabong Ext8 4.0 5.0 2.5 2.5 6.5 Thabong Ext9 5.0 4.0 2.5 2.5 2.5 6.5 6.5 5.0 6.5 Thabong Ext10 2.5 2.5

Thabong Ext11 2.5 2.5 0.0 2.5 2.5 2.5

Thabong Ext13 4.0 4.0 2.5 2.5 2.5 2.5

4.0 Thabong Ext14 5.0 2.5 1.0 2.5 2.5

6.5 5.0 Thabong Ext15 2.5 2.5 2.5 2.5

8.0 5.0 Thabong SP 4.0 4.0 2.5 0.0

Thabong SP1

Thabong SP2 2.5 2.5 2.5 2.5 2.5 1.0

6.5 6.5 Thabong SP3

2.5 2.5 2.5 2.5

4.0 Thelma 3.5 5.0

1.0 2.5 2.5

Tswelangpele SP 3.5 2.5 2.5 2.5 2.5 2.5 9.0 Ventersburg SP 6.0 3.5 5.0 4.0 2.5

Virginia Gold Mine

4.0 Virginia SP 2.5 5.0 1.0 2.0 0.0

5.5 Voorspoed 1.5 1.5 0.0 0.0 2.5

Welkom Central 3.5 3.5 3.5 1.0 2.5 2.5

Western Holdings Gold Mine 2.5 4.0 0.0 0.0 0.0 0.0

Whites SP

2008 2009 2010 2011 2012 2013 Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. Growth Profile Growing Stable Slow Null Housing Performance Index Trends Matjhabeng, performance over time relative to the metro, 2007 -2013 9.0 7.5 7.5 Allanridge SP 5.0 3.5 3.5 6.5 5.0 5.0 6.5 Bedelia

1.0 1.0 6.5 8.0 Bronville 2.5 4.0 4.0 2.5

Dagbreek 3.5 4.0 3.5 1.0 4.0 2.0

5.0 5.0 Doorn 1.0 1.0 2.5 1.0 6.5 5.0 Flamingo Park 1.0 4.0 1.0 3.5

4.0 Harmony 4.5 5.0 1.0 1.0 0.0

Harmony Gold Mine 0.0 1.0 0.0 1.0 0.0 0.0

5.0 Havengaville 5.0 3.5 5.0

2.5 3.5

5.0 Hennenman SP 4.0 3.5

1.0 2.5 1.0 8.0 6.5 6.5 Hestersrus 5.0 2.5 2.5 6.5 6.5 Jan Cilliers Park 4.0

1.0 3.5 1.0 6.5 7.5 5.0 Jim Fouchepark 5.0 1.0 2.5

5.5 6.5 Kitty 4.0 3.5 0.0 1.0 8.0 6.5 9.0 Kutloanong SP 4.0 2.5 2.5 6.5 Lake Veiw 3.5 4.0 1.0 1.0 4.0

Matjhabeng NU 4.0 2.5 0.0 1.0 0.0 2.5

6.5 6.5 6.5 6.5 Meloding SP 6.0 1.0 7.5 6.5 Merriespruit 5.0 3.5 1.0 1.0

Merriespruit Gold Mine 2.5 2.5 2.5 2.5 2.5 2.5 6.5 6.5 Mimosa Park 3.5 0.0 2.5 0.0

Mmamahabane SP 2.5 2.5 2.5 2.5 2.5 2.5 6.5 6.5 Naudeville 4.0 2.0 1.0 1.0

5.0 Ou Dorp 4.0 3.5 2.5 3.5 3.5 6.5 Phathakahle SP 2.5 1.0 2.5 3.5 0.0 6.5 6.5 Philippi 1.0 2.5 1.0 0.0 7.5 5.0 4.0 Phomolong SP 5.0 2.5 2.5

President Brand Gold Mine

7.5 6.5 6.5 Reitzpark 5.0 2.5 3.5 10.0 6.5 Rheederpark 4.0 3.5 2.5 2.5

5.0 Riebeeckstad SP 4.0 3.5 1.0 4.0 1.0 9.0 7.5 Ross Kent North 3.5 5.0 3.5 3.5 7.5 9.0 Ross Kent South 2.5 5.0 2.5 3.5 6.5 7.5 Saaiplaas 5.0 2.5 2.5 2.5 6.5 6.0 6.0 Sandania 5.0 3.5 3.5 6.5 6.5 5.0 Seemeeu Park 4.0 0.0 3.5 6.5 6.5 St Helena 5.0

3.5 1.0 1.0

St Helena Gold Mine

Thabong Ext1 5.0 3.5 2.5 1.0 2.5 3.5

6.5 5.0 Thabong Ext2 1.0 2.5 3.5 3.5 6.5 Thabong Ext3 4.0 4.0 5.0 0.0 2.5

7.5 8.0 5.0 Thabong Ext4 4.0 3.5 4.0 8.0 8.0 Thabong Ext5 5.5 5.0 2.5 2.5 8.0 6.5 Thabong Ext6 5.0 5.0 1.5 2.5

5.5 6.5 Thabong Ext7 8.0 0.0 1.0 2.5

8.0 6.5 Thabong Ext8 4.0 5.0 2.5 2.5 6.5 Thabong Ext9 5.0 4.0 2.5 2.5 2.5 6.5 6.5 5.0 6.5 Thabong Ext10 2.5 2.5

Thabong Ext11 2.5 2.5 0.0 2.5 2.5 2.5 8.5 Performance Over Time Thabong Ext13 4.0 4.0 2.5 2.5 2.5 2.5 These charts provide the housing performance index 4.0 Thabong Ext14 5.0 by suburb, over time, using the six key indicators 2.5 1.0 2.5 2.5 (price and value appreciation, sales and bonded sales,

6.5 5.0 Thabong Ext15 churn and new properties). Growth is relative to the 2.5 2.5 2.5 2.5 municipality (and change from the preceding year), so it

8.0 5.0 is important to compare these lines to the area’s overall Thabong SP 4.0 performance and the direction in which the trends are 4.0 2.5 0.0 headed. The city’s growth overall (directly above) is in Thabong SP1 the top 7 slowest growing markets for mining towns – it appears to be on a downward trend and also has the largest volume of activity in this segment. Thabong SP2 2.5 2.5 2.5 2.5 2.5 1.0 Matjhabeng’s housing market appears to be on 6.5 6.5 Thabong SP3 a downward trend after experiencing steady 2.5 2.5 2.5 2.5 growth since 2010. In considering development 4.0 Thelma 3.5 5.0 investment over the long term, stability of growth is 1.0 2.5 2.5 often a more important consideration, when projecting future performance, than high growth. The building of Tswelangpele SP 3.5 2.5 2.5 housing opportunities between areas of high and low 2.5 2.5 2.5 9.0 growth can better integrate housing markets overall. Ventersburg SP 6.0 3.5 5.0 This information can help inform one how to create 4.0 2.5 a more cohesive and stable housing continuum, with

Virginia Gold Mine fewer spikes and drops – and where to begin.

Areas with no data have no residential properties or sales 4.0 Virginia SP 2.5 5.0 1.0 2.0 0.0 transactions, such as farms or open space, mines or industrial uses like power generation. 5.5 Voorspoed 1.5 1.5 0.0 0.0 2.5

Welkom Central 3.5 3.5 3.5 1.0 2.5 2.5

Western Holdings Gold Mine 2.5 4.0 0.0 0.0 0.0 0.0

Whites SP

Housing Performance Index Trend Matjhabeng, 2008 - 2013.

Matjhabeng 3,5 3,5

2008 2009 2010 2011 2012 2013 Year Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds reg-

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Key Performance Indicators 8.6 Housing Performance Matjhabeng, 2008 - 2013 Indicators Change over time of the six key indicators within the Housing Performance Index R 354K

)

) e Six indicators – price and value

R 300K R 300K e

(

R 259K a

R 276K r e appreciation (top orange and blue lines),

(

R 200K R 200K i total sales and bonded sales (middle

y R 210K r

a o green bars and brown line), change in

g R 100K R 100K v

v new properties and churn (bottom red

A A and blue lines) – are the most telling R 0K R 0K of growing, active housing property

) 2,225 s

r 2 000 2 000 S markets. The relationship between

(

l 1,566 indicators provides clues as to what

a 1,504

)

n 1,466

S 1 500 1 500 i

e 1,375 n

l b 1,289

i may be driving performance, what that 62% o

(

d 1 000 1 000

d i might mean for future development

e 58% o

51%

l 52% l potential and how it might affect or be

a 50%

500 49% 500 t

T T influenced by different housing types, 0 0 3% 2,9% 3% prices or target incomes.

)

(

e 2,1% 2,2%

t 2,0%

)

e 1,9%

2% 2% e These charts compare the performance

p 1,8%

(

of three ownership types, namely

n freehold, sectional title and estate

1% 1%

g 0,9%

n ownership. The housing market in

h 0,7% 0,6% C 0,5% 0,4% 0,4% Matjhabeng is dominated by freehold 0% 0% 2008 2009 2010 2011 2012 2013 properties. Overall, properties have Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry. been selling consistently above Key Indicators their values, suggesting active Avg Property Value Avg Sales Price lender and buyer interest in area. Total Residential Sales Total Bonded Residential Sales This may also be the result of lower- Change in New Properties cost housing bringing the average Churn value down.

Overall, the number of sales (green Key Performance Indicators bar) have fluctuated steadily since Matjhabeng, Freehold properties, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index 2009 and bonded sales (brown line) R 350K have increased by 1% since 2009.

)

u R 300K R 300K

R 259K n

(

r e R 271K

(

a e Housing markets are very sensitive to

R 200K R 200K i

t R 204K

p l access to credit, so lending information

g R 100K R 100K v will be helpful in understanding this

A A more closely (see Lending below). R 0K R 0K Churn rates have steadily increased

) 2 000 1,930 2 000 s

(blue line) from 2009 to 2012 and

(

e 1 500 1 500 1,388 n

g 1,347

a 1,308 dropping in 2013 from 2012, indicating

)

e 1,210 n

1,156 s

60% higher turnover of existing homes over

1 000 1 000 b

(

s n time as well.

e 57% o

50%

l 50% 500 51% 500 l

48% a

T 0 0 2,6%

)

(

s 2,0%

i 1,9% t 2% 1,9% 2%

) e 1,7% 1,7% e

(

0,9% C n 1% 1%

e 0,6%

g 0,6%

a 0,4% 0,4%

h 0,3%

C 0% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry.

Key Indicators Avg Property Value Avg Sales Price Total Residential Sales Total Bonded Residential Sales Change in New Properties Churn

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Key Performance Indicators 8.7 Housing Performance Matjhabeng, Sectional Title properties, 2008 - 2013 Indicators by Property Type Change over time of the six key indicators within the Housing Performance Index R 400K R 401K R 400K R 354K Different housing markets perform in

)

e R 378K

e u different ways, including freehold (free-

(

R 300K R 300K a

r e standing) homes and sectional title (sub-

(

a e units within a single property). The area

R 261K c

P r R 200K R 200K is predominantly freehold (see Market

S Size below), with only a small number of

v R 100K R 100K subplaces throughout the municipality

A A having sectional title properties. Overall, R 0K R 0K sectional title sales prices have been

) 295 s

e n 300 300 steadily increasing; churn levels (bottom

blue line) have remained significantly

(

e n higher than those of new properties

)

n 77%

S 200 200 i

178 s

b (red lines). Market activity decreased

a 165

i 158 157 o

d significantly in 2009 in terms of sales,

(

e 133

s n lending and rates of new properties

e 100 100 o

65%

l 64% 55% l added to the registry (red line).

o 44% 52% o

T 0 0 Lending is instrumental in the growth 9,3%

)

d of housing markets and the ability to

(

8% 8% s 7,0% access bonds to buy sectional title houses

e 6,9%

r 6,3%

6,1% )

e has driven the growth of this housing

6% 6% u

4,8% (

P type. Sectional title is also an important

5,2% n

e 4% 4% u affordable homeownership option.

g 2% 2% n Matjhabeng does not have any estate

h 1,4% 1,5% C properties. 0,7% 0% 0,2% 0,0% 0% 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry.

Key Indicators Avg Property Value Avg Sales Price Total Residential Sales Total Bonded Residential Sales Change in New Properties Churn

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 9. Market Size

9.1 Market Size: Key Findings

Matjhabeng’s housing market is essentially three markets: Government-sponsored housing built as part of the national housing initiative over the past 20 years, privately traded and financed homes and informal settlements. Markets are generally closely clustered with lower-priced, actively selling private growing markets near the city centre, middle income, non-bonded Government-sponsored developments and informal settlements (not on the deeds registry).

The implied demand for housing is high; highlighted by the high number of informal settlements. Demand creates opportunities for new housing supply to be positioned between the existing segregated markets to better integrate the town’s spatial, income and housing markets. Informal settlements are apparent closest to properties below R 250 000 and R500 000, in the areas with high volumes of Government-sponsored housing; this creates an opportunity to leverage on properties in this segment with high equity levels to assist homebuyers with climbing the housing continuum. The current proximity of Government-sponsored housing to the informal settlements creates opportunity for Government to eradicate the informal settlements by expanding their investment within the same proximity.

9.2 Policy Implications

Governments can use this existing investment to identify areas of future development and entice private sector participation. Existing Government investment in housing can be leveraged to guide new development opportunities, if and when those homes can be sold to new buyers and the proceeds when used to purchase new housing further up the housing continuum. As an example, Governments might prioritise new development between government-dominated and private markets for more integration into mixed-income sites and fill spatial gaps within the town.

The encouragement of the expansion of financing to lower-income families will allow for those homes to be sold and the proceeds then used to support housing development further up the housing continuum.

Rapidly changing housing demand, driven by mining activities, makes a strong case for prioritising quality rental housing. If rental housing is well-situated and convenient to transport and centrally located in dense areas, it can bring social and economic cohesion to housing markets over the longer term.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 9.3 Quick Definitions:

Market Size: the total number and distribution of important aspects of areas, including average home prices, home values and total households in order to inform the potential scale of housing intervention strategies and the impact of proposed development schemes.

Property Value Segment: in order to better understand the performance of housing markets, data has been grouped into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million and over R1.2 million. This helps one to understand the various trends and strengths inherent in each segment and to see how properties are integrating across the housing continuum, especially over time.

Government-sponsored Housing: housing which was created through some Government intervention, from site and infrastructure provision, direct construction or finance such as Site & Service, RDP and BNG. While these homes are not recorded as such on the deeds registry, their presence is estimated based on surrounding registrations, timing, prices and volume of activity.

Freehold / Full Title: a permanent and absolute tenure of land or property by a person or entity (such as a corporation or trust) with freedom to dispose of it at will. Freehold or Full Title describes the assumption of full ownership rights when one owns a property, often including the building and the land it is built on.

Sectional Title: separate ownership of units or sections within a complex or development. These are often comprised of mini subtype houses, semi-detached houses, townhouses, flats or apartments and duet houses. These are governed by the Sectional Titles Act and managed by a body corporate comprised of elected representatives from the sectional title owners in the development.

Absorption: the pace with which homes to be developed might be sold in a specific market during a given period of time. This can calculated by dividing the total number of available homes coming on line by the estimated number of sales per month, often based on the rate of sales nearby.

Households to Properties Ratio: the total number of households (as reported by the census) divided by the total number of residential properties on the deeds registry. This is a quick, easy relative indicator of household density and formality of a suburb as compared to other areas.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Distribution of Properties and Values by Suburb 9.4 Market Size and Matjhabeng, 2013 Formal residential properties, informal settlements and mines, by suburb Government Investment in Housing

Allanridge SP Market size measures the distribution Phathakahle SP of home prices, households and values

Ross Kent North in order to inform the potential scale of Philippi

Kutloanong SP housing intervention strategies and the Hestersrus Ross Kent South Riebeeckstad SP impact of proposed developments on Rheederpark Thabong Ext6 Thabong Ext15 Western Holdings Gold Mine Thabong SP2 the surrounding area. It can also show Thabong Ext13 Bedelia the impact of Government investment Thabong Ext9 Hennenman SP Lake Veiw Voorspoed in housing markets. Comparing the Naudeville Bronville Matjhabeng NU Whites SP Phomolong SP distribution of values to the housing Saaiplaas

Mmamahabane SP performance map, several moderate Harmony Gold Mine Harmony Ventersburg SP Merriespruit Tswelangpele SP income areas are growing faster than Virginia SP

Kitty the municipality.

Meloding SP In Matjhabeng, both formal and informal properties, of several Source: South African deeds registry via Lightstone (Pty), Ltd; Housing Development Agency informal settlements and mines.

Number of Residential properties Type Affordability values, are concentrated along the 0 15 000 Informal Settlement Under R250k 5 000 Mines Between R250k - R500k mining corridor; the location of these 10 000 Between R500k - R1.2m Over R1.2m properties coincides with the location of the highest concentration of Government investment in housing Number and Percent Government Sponsored Residential Properties (map two). Informal settlements are Matjhabeng, by total residential properties per suburb, 2013 apparent closest to properties below R R250 000 and areas with high volumes of Government-sponsored housing; Phathakahle SP this creates an opportunity to leverage on properties in this segment with high equity levels to assist homebuyers with climbing the housing continuum.

Kutloanong SP Thelma Ross Kent South It is a very positive fact that so many Government-sponsored housing units are on the deeds registry. Riebeeckstad SP Often, these homes are undervalued, Rheederpark for two reasons. The subsidy value was often noted as the sales price (rather Hennenman SP Voorspoed than the cost), or sales prices are driven Naudeville Bronville Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP low because buyers lack access to credit with which to purchase the homes at a more realistic sales price and must pay Saaiplaas with the cash they have. Harmony Gold Mine Tswelangpele SP The encouragement of the resale of

Kitty Government-sponsored housing is

Meloding SP an important means of expanding housing options – for the sellers, who Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry. can move up the ladder with the equity Total Residential properties % Govt Sponsored 0 0% 30% from the sale of their property, to the 2000 4000 first-time homebuyer purchasing the 6000 8000 existing home. More activity in these 10000 markets will also raise the value of the home, which is often a family’s most valuable asset.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Market Size: Total Properties by Property Value Segment 9.5 Market Size by Value Matjhabeng, 2013 Sorted by suburb, by property value Segment Kutloanong SP 182 6 834 Meloding SP 108 6 742 Riebeeckstad SP 80 2 723 618 These charts provide the proportion Thabong Ext8 2 953 of properties within each suburb Phomolong SP 2 882 Phathakahle SP 2 584 by property value segment: below Bedelia 844 1 014 R250 000; (between R250 000 – Thabong Ext14 1 862 R500 000; and over R500 000). 61% Virginia SP 824 820 Bronville 204 1 453 of the properties in Matjhabeng fall in Thabong Ext13 1 595 the below R250 000 (green bars) value Dagbreek 535 941 Thabong Ext15 1 421 segment; with 26% of Matjhabeng’s Thabong Ext9 1 393 residential properties sponsored by Thabong SP3 1 305 Government. Matjhabeng has a diverse Saaiplaas 549 638 Thabong SP 1 168 range of property values, although only Hennenman SP 649 481 6 a few subplaces have diverse value Flamingo Park 731 329 segments with others only hosting one Thabong SP2 952 Thabong Ext10 939 range of housing values. Thabong Ext5 766 114 Doorn 593 314 Naudeville 687 229 In small housing markets, Government Thabong Ext1 863 interventions and programmes must Jan Cilliers Park 572 216 be more specific as their impact on the Thabong Ext4 209 636 Thabong Ext3 703 market overall will be greater. Harmony 398 337 Reitzpark 716 A diverse approach may help to expand Ross Kent North 754 Thabong Ext2 746 the diversity and distribution of housing Allanridge SP 553 153 options across town. St Helena 30327768 Ou Dorp 501 Thabong Ext6 465 186 Hestersrus 644 Rheederpark 377 Thabong Ext7 554 Jim Fouchepark 175333 Ventersburg SP 457 21 Merriespruit 232 Seemeeu Park 347 Philippi 284 Welkom Central Thabong Ext11 254 Ross Kent South 167 Thelma Sandania Kitty Mimosa Park Lake Veiw Voorspoed Matjhabeng NU Havengaville Harmony Gold Mine Merriespruit Gold Mine Tswelangpele SP 8 Western Holdings Gold Mine Mmamahabane SP 1 Thabong SP1 0 St Helena Gold Mine 0 President Brand Gold Mine 0 Virginia Gold Mine 0 Whites SP 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Total Residential Properties

Source: SA Deeds data, via Lightstone (pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. Property Value Segment Under R250k Between R250k - R500k Between R500k - R1.2M Over R1.2M

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Market Size: Total Properties by Property Type Matjhabeng, 2013 9.6 Market Size by Property Type Freehold, Sectional Title and Estate properties Kutloanong SP 7 016 Meloding SP 6 855 Matjhabeng’s residential properties are Riebeeckstad SP 215 3 223 predominantly freehold, with only a small amount Thabong Ext8 2 973 Phomolong SP 2 897 of subplaces throughout the municipality having Phathakahle SP 2 584 sectional title properties. Sectional title properties Bedelia 262 1 637 Thabong Ext14 1 862 appear to be located in subplaces with higher Virginia SP 182 1 568 value segments. Bronville 1 673 Thabong Ext13 1 595 Dagbreek 336 1 204 Thabong Ext15 1 425 Distribution of Properties types by Suburb Thabong Ext9 1 421 Matjhabeng, by total residential properties per suburb, 2013 Thabong SP3 1 305 Saaiplaas 1 172 Thabong SP 1 186 Allanridge SP Phathakahle SP Hennenman SP 51 1 087 Flamingo Park 123 946 Thabong SP2 952 Thabong Ext10 951 Thabong Ext5 944 Kutloanong SP Doorn 67 854 Ross Kent North Philippi Naudeville 79 841 Ross Kent South Thabong Ext1 867 Jan Cilliers Park 77 777 Thabong Ext4 845 Riebeeckstad SP Rheederpark Thabong Ext3 797 Flamingo Park Thabong Ext15 Harmony 138640 Western Holdings Gold Mine Thabong Ext10 Jim Fouchepark Thabong Ext1 Thabong Ext13 Reitzpark 121 644 Welkom Central Thabong SP3 Hennenman SP

Ross Kent North 764 Jan Cilliers Park Bronville Thabong Ext2 748 Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP Allanridge SP 20 693 St Helena 192 520 Ou Dorp 679 Saaiplaas Thabong Ext6 656 Harmony Gold Mine Hestersrus 644 Mmamahabane SP Rheederpark 574 Virginia Gold Mine

Thabong Ext7 617 Merriespruit Gold Mine Jim Fouchepark 491 Meloding SP Ventersburg SP 494 Merriespruit 471 Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry. Seemeeu Park 336 Total Residential properties Property Type Description Philippi 349 0 Freehold Welkom Central 241 2000 Sectional Title 4000 Thabong Ext11 254 6000 Ross Kent South 215 8000 Thelma 208 10000 Sandania 166 Kitty 150 Mimosa Park 144 Lake Veiw 118 Voorspoed 54 Matjhabeng NU 48 Havengaville 29 Harmony Gold Mine Merriespruit Gold Mine Tswelangpele SP 8 Western Holdings Gold Mine Mmamahabane SP 1 Thabong SP1 0 St Helena Gold Mine 0 President Brand Gold Mine 0 Virginia Gold Mine 0 Whites SP 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Total Residential Properties Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Property Type Description Freehold Sectional Title

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Market Size: Households, Properties and Income Matjhabeng, 2013 Sorted by total households Percent Households Renting 0K 10K 20K

15,623 7,016 2,2 R 2,1K Kutloanong SP 15% 13,682 6,855 2,0 R 1,8K Meloding SP 18% 5,944 2,897 2,1 R 1,4K Phomolong SP 13% 4,817 2,973 1,6 R 2,6K Thabong Ext8 20% 4,007 2,584 1,6 R 2,1K Phathakahle SP 11% 3,773 3,438 1,1 R 19,5K Riebeeckstad SP 15% 3,747 1,305 2,9 R 1,1K 9.7 Market Size by Households and Income Thabong SP3 15% 3,283 867 3,8 R 2,1K Thabong Ext1 37% 2,778 656 4,2 R 2,6K Thabong Ext6 9% The understanding of the distribution of households and incomes within Matjhabeng2,757 help to inform one of scale, 1,186 2,3 R 2,2K Thabong SP 29% 2,707 development impact and programme targets. Census data is useful as the only source1,673 of demographic1,6 informationR 3,9K Bronville 23% 2,670 1,862 1,4 R 1,2K consistently available at the suburb level and provides interesting Thabong insights Ext14 into19% local differences. 2,615 48 54,5 R 4,8K Matjhabeng NU 30% 2,541 845 3,0 R 3,0K One of the general findings for the mining towns has been that Thabong areas Ext4 with 31%high levels of renters (grey bars) also very 2,426 1,899 1,3 R 13,6K often have the highest household incomes (such as Welkom Bedelia Central). 31%It is evident that the areas with the highest 2,426 1,595 1,5 R 1,5K rental activity may be housing owned by the mining companies Thabong and Ext13 rented out29% to employees. While rental generates 2,363 952 2,5 R 1,3K important income to the owners, the creation of quality, affordable Thabong SP2 rental housing9% in those areas can help to address 2,307 1 2 307,0 R 1,1K Mmamahabane SP 9% some of the housing backlog more quickly. 2,142 1,750 1,2 R 11,4K Virginia SP 34% 2,113 1,421 1,5 R 1,9K Thabong Ext9 20% 2,084 Areas with above-average renters and moderate incomes (green bar) (such as Saaiplaas 1,202and Voorspoed)1,7 mightR 6,6K display Saaiplaas 42% 1,910 748 2,6 R 2,1K families ready for more formal rental options. Thabong Ext2 37% 1,908 1,425 1,3 R 1,4K Thabong Ext15 21% 1,893 1,540 1,2 R 15,3K Ratios of households (from StatsSA) to properties (from the Dagbreek deeds registry)32% – the red bar – can show degrees 1,849 797 2,3 R 2,0K of limited supply or informality. The informal settlements, Thabongsuch Ext3 as Mmamahabane,33% have high populations, low 1,337 921 1,5 R 12,1K formal properties, few registered properties and low incomes. Doorn 40% 1,254 1,138 1,1 R 7,8K Hennenman SP 33% 1,246 951 1,3 R 2,7K Thabong Ext10 15% 1,179 1,069 1,1 R 14,7K Flamingo Park 15% 1,170 712 1,6 R 13,6K St Helena 51% 1,166 944 1,2 R 8,7K Thabong Ext5 8% 1,159 620 1,9 R 2,3K Rheederpark 27% 1,135 617 1,8 R 3,4K Thabong Ext7 27% 1,033 Market Size: Households, Properties and Income Naudeville 920 1,1 R 15,1K Matjhabeng, 2013 29% 979 Sorted by total households 778 1,3 R 13,3K Harmony 36% Percent Households 968 Renting 854 1,1 R 14,1K Jan Cilliers Park 26% 0K 10K 20K 953 15,623 Merriespruit 477 2,0 R 11,1K 7,016 2,2 R 2,1K 45% Kutloanong SP 15% 905 13,682 Ross Kent North 764 1,2 R 9,5K 6,855 2,0 R 1,8K 34% Meloding SP 18% 874 5,944 Ou Dorp 684 1,3 R 8,1K 2,897 2,1 R 1,4K 48% Phomolong SP 13% 868 4,817 Reitzpark 765 1,1 R 10,8K 2,973 1,6 R 2,6K 28% Thabong Ext8 20% 854 4,007 President Brand Gold Mine 0 R 6,0K 2,584 1,6 R 2,1K 97% Phathakahle SP 11% 846 3,773 Allanridge SP 713 1,2 R 8,1K 3,438 1,1 R 19,5K 35% Riebeeckstad SP 15% 729 3,747 Tswelangpele SP 8 91,1 R 2,6K 1,305 2,9 R 1,1K 27% Thabong SP3 15% 687 3,283 Thabong Ext11 254 2,7 R 2,0K 867 3,8 R 2,1K 13% Thabong Ext1 37% 623 2,778 Jim Fouchepark 508 1,2 R 27,6K 656 4,2 R 2,6K 15% Thabong Ext6 9% 503 2,757 Seemeeu Park 388 1,3 R 13,7K 1,186 2,3 R 2,2K 27% Thabong SP 29% 385 2,707 Lake Veiw 118 3,3 R 14,5K 1,673 1,6 R 3,9K 47% Bronville 23% 379 2,670 Western Holdings Gold Mine 7 54,1 R 9,6K 1,862 1,4 R 1,2K 75% Thabong Ext14 19% 370 2,615 Welkom Central 255 1,5 R 16,7K 48 54,5 R 4,8K 69% Matjhabeng NU 30% 367 2,541 Ventersburg SP 494 0,7 R 10,6K 845 3,0 R 3,0K 30% Thabong Ext4 31% 316 2,426 St Helena Gold Mine 0 R 4,6K 1,899 1,3 R 13,6K 94% Bedelia 31% 313 2,426 Thabong SP1 0 R 1,2K 1,595 1,5 R 1,5K 30% Thabong Ext13 29% 298 2,363 Ross Kent South 215 1,4 R 10,2K 952 2,5 R 1,3K 37% Thabong SP2 9% 289 2,307 Philippi 349 0,8 R 10,0K 1 2 307,0 R 1,1K 19% Mmamahabane SP 9% 261 2,142 Sandania 198 1,3 R 7,7K 1,750 1,2 R 11,4K 45% Virginia SP 34% 247 2,113 Thelma 208 1,2 R 9,5K 1,421 1,5 R 1,9K 30% Thabong Ext9 20% 234 2,084 Kitty 150 1,6 R 16,8K 1,202 1,7 R 6,6K 38% Saaiplaas 42% 160 1,910 Voorspoed 67 2,4 R 3,1K 748 2,6 R 2,1K 56% Thabong Ext2 37% 145 1,908 Harmony Gold Mine 16 9,1 R 9,8K 1,425 1,3 R 1,4K 24% Thabong Ext15 21% 139 1,893 Mimosa Park 144 1,0 R 12,6K 1,540 1,2 R 15,3K 20% Dagbreek 32% 108 1,849 Whites SP 0 R 1,7K 797 2,3 R 2,0K 38% Thabong Ext3 33% 105 1,337 Hestersrus 644 0,2 R 5,0K 921 1,5 R 12,1K 15% Doorn 40% 91 1,254 Virginia Gold Mine 0 R 3,2K 1,138 1,1 R 7,8K 13% Hennenman SP 33% 28 1,246 Havengaville 29 1,0 R 3,9K 951 1,3 R 2,7K 14% Thabong Ext10 15% 0 1,179 Merriespruit Gold Mine 12 0,0 1,069 1,1 R 14,7K Flamingo Park 15% 4K 8K 12K 16K 20K 0K 5K 0 1 000 2 000 3 000 R 0K R 20K R 40K 1,170 712 1,6 R 13,6K St Helena 51% Total Residential Monthly Household Household Total (blue) Properties HHs to Properties Ratio Income 1,166 944 1,2 R 8,7K Thabong Ext5 8% Sources: Stats SA, 2011 Census data, SA Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the 1,159 620 1,9 R 2,3K deeds registry. Rheederpark 27% 1,135 617 1,8 R 3,4K Thabong Ext7 27% 1,033 920 1,1 R 15,1K Naudeville 29% 979 778 1,3 R 13,3K Harmony 36% 968 854 1,1 R 14,1K Jan Cilliers Park 26% 953 477 2,0 R 11,1K Merriespruit 45% 905 764 1,2 R 9,5K Ross Kent North 34% 21 874 684 1,3 R 8,1K Ou Dorp 48% 868 The Housing Development Agency765 | Matjhabeng1,1 MiningR 10,8KTown Housing Market Report Reitzpark 28% 854 0 R 6,0K President Brand Gold Mine 97% 846 713 1,2 R 8,1K Allanridge SP 35% 729 8 91,1 R 2,6K Tswelangpele SP 27% 687 254 2,7 R 2,0K Thabong Ext11 13% 623 508 1,2 R 27,6K Jim Fouchepark 15% 503 388 1,3 R 13,7K Seemeeu Park 27% 385 118 3,3 R 14,5K Lake Veiw 47% 379 7 54,1 R 9,6K Western Holdings Gold Mine 75% 370 255 1,5 R 16,7K Welkom Central 69% 367 494 0,7 R 10,6K Ventersburg SP 30% 316 0 R 4,6K St Helena Gold Mine 94% 313 0 R 1,2K Thabong SP1 30% 298 215 1,4 R 10,2K Ross Kent South 37% 289 349 0,8 R 10,0K Philippi 19% 261 198 1,3 R 7,7K Sandania 45% 247 208 1,2 R 9,5K Thelma 30% 234 150 1,6 R 16,8K Kitty 38% 160 67 2,4 R 3,1K Voorspoed 56% 145 16 9,1 R 9,8K Harmony Gold Mine 24% 139 144 1,0 R 12,6K Mimosa Park 20% 108 0 R 1,7K Whites SP 38% 105 644 0,2 R 5,0K Hestersrus 15% 91 0 R 3,2K Virginia Gold Mine 13% 28 29 1,0 R 3,9K Havengaville 14% 0 Merriespruit Gold Mine 12 0,0

4K 8K 12K 16K 20K 0K 5K 0 1 000 2 000 3 000 R 0K R 20K R 40K Total Residential Monthly Household Household Total (blue) Properties HHs to Properties Ratio Income

Sources: Stats SA, 2011 Census data, SA Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. 10. Market Activity

10.1 Key Findings

Sales activity is evident in several subplaces throughout the municipality, however, the properties that are being transacted sell below their values. Sales dropped across the Country after 2008 and have fluctuated steadily in Matjhabeng.

Bonded sales in lower markets are an extremely small portion of the bonded market. Sales continue to be dominated by repeat sales, with very few new housing sales. Property value (the home’s worth) and sales prices are closely related in active markets. In less active markets, sales prices are less than their suggested value.

10.2 Policy Implications

Focus on increasing access to lending, determining what barriers exist to make credit more accessible through lower cost products, more flexible terms and/or inclusion of existing debt into a mortgage loan product. These products should be tailored to meet the needs of the lower-income markets.

Create financing products that can bring down the cost of quality rental housing as an affordable alternative to homeownership for lower-income families.

10.3 Quick Definitions:

Market Activity: performance of key housing property market indicators over time, such as sales, bonds, registrations and churn.

Market Share: the proportionate share of the market according to certain indicators, such as loans, types of properties, or property values.

Property Value Segment: in order to better understand the performance of housing markets, data has been aggregated into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million and over R1.2 million. This helps one to understand the various trends and strengths within each segment and to see how properties are integrating across the housing continuum, especially over time.

Bonded Sale: a transfer of deed on the deeds registry with an associated bond from a lender, including the property as collateral for the bond.

New sale / New Registration: the appearance of a residential property on the deeds registry for the first time. It might include new construction or previously existing units being recorded for the first time (such as previously built RDP homes).

Resale / Repeat Sales: the sale or transaction of a property which has existed on the deeds registry before (as opposed to a new sale or new registration).

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 10.4 Sales and Bonded Sales by Property Value Segments

From the maps above it is evident that Government-sponsored housing is apparent throughout the municipality, suggesting that Government may be the main driver for the growth of the lowest segment of the market. This is further confirmed by the small amount of sales and bonded sales in this segment (green bar). The highest percentages of sale and bonded sale activity are in the R250 000 – R500 000 range (blue bar) and R500 000 – R1.2M range (orange bar), with almost all bonds in those segments receiving bonds. The greatest increase in sale and bonded sale activity has been in the mid-range (orange bar) properties, with the least being in the lowest range (green bar) despite the fact that the properties in this segment take up the highest share of the market at 61%.

The increase in bonded sales (in the orange and blue bars, in 2013) is also reflected in the increase in the housing performance. The relationship between sales and bonds shows the importance of access to credit to growing housing markets, in particular the lower valued segments. The share of bonded sales under R500 000 has fluctuated over time but still takes up the lowest share of the lending market. This might be due to credit indebtedness which disproportionately impacts lower-income borrowers, or lack of access to affordable homes to buy. Policies that help expand access to credit and provide more housing opportunities under R500 000 can expand sales within that band, in the lower bands. Rental housing might also be a more suitable option.

Total Sales by Property Value Segment Total Bonded Sales by Property Value Segment Matjhabeng, 2008 - 2013 Matjhabeng, 2008 - 2013 All residential sales All residential sales 2500 2500

2000 19% 2000

S 1500 1500

e a 22% 14%

t 14%

n 11% s 14%

e 46%

i 16%

o t 1000 41% 1000

o 44% 36% 41%

a 47% t 7% 46% o T 7% 6% 5% 42% 9% 42% 45% 500 500 38% 33% 46% 41% 40% 40% 45% 37% 37% 45% 47% 49% 53% 42% 0 2% 2% 2% 3% 4% 3% 0 3% 3% 2% 3% 5% 4% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. reflect formal market data as reflected on the deeds registry. Property Value Segment Property Value Segment Under R250k Under R250k Between R250k - R500k Between R250k - R500k Between R500k - R1.2M Between R500k - R1.2M Over R1.2M Over R1.2M

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Percent of Sales Bonded by Value Segment 10.5 Lending per Property Value Matjhabeng, All residential sales, 2008 - 2013 Segments 82% 80% This chart shows (by contrast to the previous charts) the percent of bonded sales within 69% the various property value segments. The 70% relatively few formal bonded sales in the 64% 67% town make the trend lines more dramatic. 60% 59%

e Overall, the total sales receiving bonds

o 50% in Matjhabeng decreased in the past

s six years. Interestingly the greatest drop in

e 44%

a 46%

bonded sales has been in the below R500

40% t 000 value segment (blue and green lines)

r perhaps due to decreased supply of housing

P 30% that falls within this segment, or decreased access to credit. 25% 20% Mid-range and upper tiered properties sales experienced relatively fluctuating 10% activity since 2009.

0% 2008 2009 2010 2011 2012 2013 Year

Market Segment Under R250K Betw R250K- R500K Betw R500K - R1.2M Over R1.2M

10.6 Sales by Property Value Sales by Property Value Segments Matjhabeng, by suburb, 2013 Segments

Allanridge SP Phathakahle SP This map shows the volume of sales activity (the size of the dot) by suburb across the town by property value

Kutloanong SP segment (the slices of the pie). According Ross Kent North Ross Kent South to data, sales were predominantly in the above R250 000 segments. Riebeeckstad SP Rheederpark Thabong Ext15 Western Holdings Gold Mine Thabong Ext14 The midrange properties (the orange Jim Fouchepark Thabong Ext13 Welkom Central Thabong SP3 Hennenman SP segments) saw most activity, with the lower- Jan Cilliers Park Bronville Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP priced homes (green) having a smaller portion of the sales activity. This may be a

Saaiplaas potential sign of active (increased) supply Harmony Gold Mine Mmamahabane SP and steady demand for the middle market. Virginia Gold Mine

Merriespruit Gold Mine Meloding SP Access to credit is a significant boost or Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. barrier to housing market growth. While Total Residential Sales Property Value Segment 0 Under R250k 50 Between R250k - R500k some suburbs offer a range of housing 100 Between R500k - R1.2m 150 Over R1.2m price options, pinpointing product prices 200 250 and types to specific areas, especially considering local affordability, is key to ensuring programme success.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Total Sales by Sales Type Matjhabeng, 2013 New and repeat sales 29 Allanridge SP 6 120 Bedelia 3 16 Bronville 2 86 Dagbreek 3 45 Doorn 3 89 Flamingo Park 9 39 Harmony 6 Harmony Gold Mine

1 Havengaville 0 39 Hennenman SP 0 2 Hestersrus 0 54 Jan Cilliers Park 3 32 Jim Fouchepark 0 5 Kitty 5 13 Kutloanong SP 3 5 Lake Veiw 0 2 Matjhabeng NU 0 4 Meloding SP 10.7 Sales by New and Repeat Sales 2 17 Merriespruit 2 0 Merriespruit Gold Mine An important distinction in market performance is the sale of new homes (which0 have never appeared on the deeds 4 Mimosa Park registry) and the resale of existing homes. The chart shows new (green) and repeat0 sales (orange) by suburb. In most mining towns, new registrations are clustered in only a few suburbs.Mmamahaba n eMatjhabeng SP appears to have new sales in several 68 Naudeville subplaces throughout the municipality – although these sales are significantly small. 41 31 Ou Dorp 2 1 Phathakahle SP New sales can also show the recent registration of Government-sponsored housing0 investment. An important point 13 Philippi is to recognise the impact of newly registered government investment in housing.0 Often, these registrations may be perceived as a market distortion but the deeds issued on Government-sponsoredPhomolong SP housing represent real assets which can now be traded and loaned against and are key to movingP resupide nthet Brand housing Gold Mine ladder. Thus, the housing market has in 21 Reitzpark fact grown. 0 7 Rheederpark 0 165 Riebeeckstad SP Suburbs with no data reflect areas with no sales or new registrations. 8 34 Ross Kent North 2 10 Ross Kent South 1 21 Saaiplaas 20 9 Total Sales by Sales Type Sandania Matjhabeng, 2013 0 New and repeat sales 21 Seemeeu Park 29 1 Allanridge SP 40 6 St Helena 120 3 Bedelia 3 St Helena Gold Mine 16 Bronville 2 2 Thabong Ext1 86 0 Dagbreek 1 3 Thabong Ext2 45 0 Doorn 3 Thabong Ext3 89 Flamingo Park 9 9 Thabong Ext4 39 1 Harmony 16 6 Thabong Ext5 1 Harmony Gold Mine 7 Thabong Ext6 1 3 Havengaville 0 Thabong Ext7 39 Hennenman SP 15 0 Thabong Ext8 2 0 Hestersrus 3 0 Thabong Ext9 54 4 Jan Cilliers Park 12 3 Thabong Ext10 32 1 Jim Fouchepark 1 0 Thabong Ext11 5 0 Kitty 1 5 Thabong Ext13 13 0 Kutloanong SP 3 3 Thabong Ext14 5 0 Lake Veiw 0 Thabong Ext15 2 Matjhabeng NU 1 0 Thabong SP 4 0 Meloding SP 2 Thabong SP1 17 Merriespruit 1 2 Thabong SP2 0 0 Merriespruit Gold Mine 5 0 Thabong SP3 4 0 Mimosa Park 7 0 Thelma 0 Mmamahabane SP Tswelangpele SP 68 Naudeville 21 41 Ventersburg SP 31 0 Ou Dorp 2 Virginia Gold Mine 1 Phathakahle SP 61 0 Virginia SP 13 12 Philippi 1 0 Voorspoed 1 Phomolong SP 15 Welkom Central 0 President Brand Gold Mine 0 Western Holdings Gold Mine 21 2 Reitzpark 0 Whites SP 7 Rheederpark 0 0 20 40 60 80 100 120 140 160 180 165 Riebeeckstad SP Total Residential Sales 8 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds reg- 34 Ross Kent North istry. 2 Measure Names 10 Ross Kent South Total Repeat Sales 1 Total New Sales 21 Saaiplaas 20 9 Sandania 0 21 Seemeeu Park 1 40 St Helena 3 St Helena Gold Mine

2 Thabong Ext1 0 1 Thabong Ext2 0 Thabong Ext3

9 25 Thabong Ext4 1 16 Thabong Ext5 The Housing Development1 Agency | Matjhabeng Mining Town Housing Market Report 7 Thabong Ext6 3 Thabong Ext7

15 Thabong Ext8 0 3 Thabong Ext9 4 12 Thabong Ext10 1 1 Thabong Ext11 0 1 Thabong Ext13 0 3 Thabong Ext14 0 Thabong Ext15

1 Thabong SP 0 Thabong SP1

1 Thabong SP2 0 5 Thabong SP3 0 7 Thelma 0 Tswelangpele SP

21 Ventersburg SP 0 Virginia Gold Mine

61 Virginia SP 12 1 Voorspoed 1 15 Welkom Central 0 0 Western Holdings Gold Mine 2 Whites SP

0 20 40 60 80 100 120 140 160 180 Total Residential Sales Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

Measure Names Total Repeat Sales Total New Sales Sales Trends by Sales Type Matjhabeng, 2008 - 2013 New and Repeat Sales 67 49

30 Allanridge SP 29 18 2 262 242 2 6 138 120 135 121 124 Bedelia 95 12 2 7 4 15 3 22 19

14 16 Bronville 11 4 2 1 82 0 2

160 107

Dagbreek 86 93 81 684 2 4 0 11 3 69 50 62 45 Doorn 44 48

3 2 4 0 7 3

85 70 74 89

75 Flamingo Park 51 23 11 2 5 0 9

52 47 39 27 Harmony 28 23 4 4 1 7 1 6

1 1

Harmony Gold Mine 0 0

3 2 2 Havengaville 1 1 1 0 0 0 0 0 0 79 57

Hennenman SP 39 45 45 47 3 2 1 0 0 0 11 8

Hestersrus

2 1 2 0 1 0 0 0 49 51 62 54 54 Jan Cilliers Park 44 5 0 4 3 7 3 43 36 32 Jim Fouchepark 30 23 25 4 1 1 4 0 0 16

7 Kitty 4 2 5 06 1 5 0 23

41 48 32 44 Kutloanong SP

6 208 6 8 6 133 11

8 6 5 Lake Veiw 7 5 1 1 41 0 0

2 2 2 2

Matjhabeng NU 1 1 0 0 0 0 34 Sales Trends by Sales Type Matjhabeng, 2008 - 2013 Meloding SP 15 New and Repeat Sales 11 13 6 5 6 67 4 3 49 8 42 30 30 Allanridge SP 22 29 17 27 18 17 2 262 242 2 Merriespruit 6 18 17 5 4 1 0 138 2 120 135 121 124 Bedelia 95 7 12 0 2 4 0 0 15 Merriespruit Gold Mine 3 0 22 19

14 16 6 Bronville 7 5 11 4 2 1 82 4 0 2 Mimosa Park 4 3 0 0 0 0 160 107 0 0

Dagbreek 86 93 81 68 4 4 2 0 Mmamahabane SP 11 3 69 50 62 45 48 Doorn 44 88 68 63 42 3 2 4 0 Naudeville 62 41 7 3 48 43 3 74 89 13 0 85 70 21 75 50 Flamingo Park 33 33 51 23 11 31 2 5 0 34 9 Ou Dorp 23 2 52 1 1 0 2 2 47 39 27 Harmony 2 28 23 1 4 4 1 7 1 6 Phathakahle SP 1 0 0 0 1 1 21 Harmony Gold Mine 0 0 25 15 19 Philippi 13 3 1 9 3 0 0 1 0 2 2 Havengaville 3 1 2 1 1 2 0 0 Phomolong SP 2 2 2 0 0 0 0 79 0 57 0 0 0

Hennenman SP 39 45 45 47 3 2 1 0 President Brand Gold 0 0 Mine 11 8 38 Hestersrus 25 25 1 21 2 0 2 Reitzpark 1 23 21 0 0 0 1 2 2 2 49 6 51 62 54 0 54 31 44 Jan Cilliers Park 19 19 4 5 0 3 Rheederpark 21 7 3 14 132 7 43 36 0 4 5 0 32 221 Jim Fouchepark 30 23 25 165 195 4 1 1 177 4 0 Riebeeckstad SP 155 162 0 7 9 4 6 16 6 8 44 7 Kitty 30 34 5 4 2 6 1 0 5 Ross Kent North 29 25 0 23 24 2 2 5 0 1 2 41 48 32 44 11 Kutloanong SP 13 10 8 8 8 6 20 6 Ross Kent South 9 6 133 3 6 1 0 0 11 1 1 8 6 74 5 58 Lake Veiw 7 5 77 1 1 41 44 0 Saaiplaas 28 0 20 23 2423 0 21 16 2 2 2 2 14 Matjhabeng NU 1 10 1 13 11 9 0 0 0 Sandania 0 8 1 34 0 0 0 0 0

19 Meloding SP 15 24 21 11 22 13 6 5 6 26 4 3 Seemeeu Park 13 8 42 9 3 2 30 0 1 22 The Housing Development Agency | 1Matjhabeng Mining Town Housing Market Report1 17 27 74 17 58 Merriespruit 50 18 17 68 5 4 1 0 St Helena 52 40 2 35 4 4 1 1 3 0 Merriespruit Gold Mine 0 0 0 St Helena Gold Mine

6 7 5 4 4 5 Mimosa Park 4 3 0 0 0 0 Thabong Ext1 3 0 0 2 0 0 0 0

Mmamahabane SP 1 1 1 1 Thabong Ext2 0 0 0 0

88 63 68 42 7 Naudeville 62 41 48 43 3 13 0 3 Thabong Ext3 21 50 02 02 0 1 0 33 33 31 15 Ou Dorp 34 23 7 7 9 2 1 1 0 Thabong Ext4 2 2 8 3 3 7 0 1 4 1 2 1 26 Phathakahle SP 1 19 0 20 16 0 0 Thabong Ext5 17 4 3 12 5 21 0 1 25 4 15 19 22 Philippi 13 17 3 12 1 9 0 0 Thabong Ext6 8 1 0 5 7 6 8 9 3 5 4 3 2 2 3 Phomolong SP 2 2 2 3 2 0 Thabong Ext7 21 0 0 0 1 1 0

28 President Brand Gold Mine 13 Thabong Ext8 15

09 101 1 101 38 2 25 25 0 21 Reitzpark 23 29 21 17 18 15 15 6 1 2 2 2 Thabong Ext9 20 0 17 5 31 9 9 34 19 19 43 Rheederpark 21 14 13 2 7 17 0 Thabong Ext10 20 13 4 5 0 11 20 7 12 221 8 8 8 1 165 195 177 1 1 Riebeeckstad SP 155 162 7 9 4 6 Thabong Ext11 0 0 6 8 44 30 34 3 Ross Kent North 29 24 25 2 2 1 5 0 1 Thabong Ext13 2 1 0 1 1 11 0 0 0 0 13 10 8 3 9 Ross Kent South 2 3 6 1 0 0 1 1 Thabong Ext14 1 1 0 1 74 0 0 58 77 0 0

Saaiplaas 44 3 4 3 28 20 23 2423 0 21 Thabong Ext15 16 0 14 0 10 10 0 13 11 9 6 5 Sandania 8 4 1 0 0 0 Thabong SP 2 2 0 0 3 0 1 19 1 1 24 21 0 0 22 Seemeeu Park 13 9 3 2 0 1 Thabong SP1 1 1 7458 50 68 3 St Helena 52 40 35 4 4 1 1 Thabong SP2 3 1 0 0

5 St Helena Gold Mine 4 Thabong SP3 1 0 02 4 5 0 0 9 8 Thabong Ext1 9 3 2 7 7 0 0 Thelma 0 0 5 0 0 0 0 1 1 0 0 1 1 Thabong Ext2 0 0 0 0 Tswelangpele SP

28 3 Thabong Ext3 16 17 21 02 02 0 1 Ventersburg SP 0 15 12 1 1 15 0 0 0 0

7 7 9 Thabong Ext4 8 3 3 7 0 1 4 1 Virginia Gold Mine

26 19 82 20 16 63 67 Thabong Ext5 17 61 4 3 12 5 0 Virginia SP 4 1 35 48 46 15 9 22 7 3 17 12 12 3 Thabong Ext6 8 2 2 5 7 2 6 8 9 Voorspoed 1 5 4 3 1 1 1 3 3 0 0 0 2 25 Thabong Ext7 21 24 1 13 1 18 15 0 Welkom Central 17 6 13 2 28 0 0 0 13 15 Thabong Ext8 2 2

09 101 1 101 2 Western Holdings 0 Gold Mine 0 0 29 17 18 15 15 Thabong Ext9 20 17 5 9 9 Whites SP 34 43

17 2008 2009 2010 2011 2012 2013 Thabong Ext10 20 13 11 Year 20 7 12

8 8 8 1 Sales Type Total New Sales 1 1 Total Repeat Sales

Thabong Ext11 0 0

Thabong Ext13 1 1 0 1 1 0 0 0 0 3 2 Thabong Ext14 1 1 0 1 0 0 0 0

3 4 3

Thabong Ext15 0 0 10 0 6 5 4

Thabong SP 2 2 3 0 1 0 1 1 0

Thabong SP1

Thabong SP2 1 0 0

5 4 Thabong SP3 1 0 20 0 0

9 8 9 7 7 Thelma 5 0 0 0 0 0 0

Tswelangpele SP

16 17 21 Ventersburg SP 15 12 0 1 1 0 0 0

Virginia Gold Mine

82 63 67 61 Virginia SP 35 48 46 15 9 7 3 12 3 2 2 2 Voorspoed 1 1 1 1 0 0 0 25 24 13 15 Welkom Central 17 18 6 13 2 0 0 0

2 2

Western Holdings Gold Mine 0 0

Whites SP

2008 2009 2010 2011 2012 2013 Year

Sales Type Total New Sales Total Repeat Sales Sales Trends by Sales Type Matjhabeng, 2008 - 2013 New and Repeat Sales 67 49

30 Allanridge SP 29 18 2 262 242 2 6 138 120 135 121 124 Bedelia 95 12 2 7 4 15 3 22 19

14 16 Bronville 11 4 2 1 82 0 2

160 107

Dagbreek 86 93 81 684 2 4 0 11 3 69 50 62 45 Doorn 44 48

3 2 4 0 7 3

85 70 74 89

75 Flamingo Park 51 23 11 2 5 0 9

52 47 39 27 Harmony 28 23 4 4 1 7 1 6

1 1

Harmony Gold Mine 0 0

3 2 2 Havengaville 1 1 1 0 0 0 0 0 0 79 57

Hennenman SP 39 45 45 47 3 2 1 0 0 0 11 8

Hestersrus

2 1 2 0 1 0 0 0 49 51 62 54 54 Jan Cilliers Park 44 5 0 4 3 7 3 43 36 32 Jim Fouchepark 30 23 25 4 1 1 4 0 0 16

7 Kitty 4 2 5 06 1 5 0 23

41 48 32 44 Kutloanong SP

6 208 6 8 6 133 11

8 6 5 Lake Veiw 7 5 1 1 41 0 0

2 2 2 2

Matjhabeng NU 1 1 0 0 0 0 34

Meloding SP 15 11 13 6 5 6 4 3 8 42 30 22 17 27 Merriespruit 17 18 17 5 4 1 0 2

0 Merriespruit Gold Mine 0 0 0

6 7 5 4 Mimosa Park 4 3 0 0 0 0 0 0

Mmamahabane SP

88 68 63 42 Naudeville 62 41 48 43 13 0 3 21 50 33 33 31 Ou Dorp 34 23 2 1 1 0 2 2

2 1 Phathakahle SP 1 0 0 0

21 25 15 19 Philippi 13 3 1 9 0 0 1 0

3 2 2 Phomolong SP 2 2 2

0 0 0 0

President Brand Gold Mine

38 25 25

Reitzpark 21 23 21 6 1 2 2 2 0 31 19 19 Rheederpark 21 14 13 7 2 0 4 5 0 221 165 195 177 Riebeeckstad SP 155 162 7 9 4 6 6 8 44 30 34 Ross Kent North 29 24 25 2 2 5 0 1 2

11 13 10 8 Ross Kent South 9 3 6 1 0 0 1 1 74 58 77

Saaiplaas 44 28 20 23 2423 0 21 16

14 10 13 11 9 Sandania 8 0 0 0 1 0 0

19 24 21 22 10.8 Market Activity amongst New Seemeeu Park 13 and Repeat Sales 9 3 2 0 1 1 1 7458 In Matjhabeng, several subplaces have experienced 50 68 large volumes of activity, such as Morewag, Bedelia, St Helena 52 40 35 4 4 1 1 Dagbreek and Riebeeckstad. The growth and 3 maturity of the subplace’s individual housing market can often be detected by comparing St Helena Gold Mine the interaction between new and resale market transactions over time. The growth 4 5 of existing home sales (the orange line) indicates Thabong Ext1 3 2 sustained interest of housing markets by borrowers 0 0 0 0 and lenders.

1 1 1 1 Thabong Ext2 0 0 Often, volumes of new homes in prior years become 0 0 resales in later years. The understanding of how

7 mining companies create new units helps one

3 understand their existing and potential contribution Thabong Ext3 to expanding the local housing economy. 02 02 0 1 0

7 7 9 Thabong Ext4 8 3 3 7 0 1 4 1

26 19 20 16 Thabong Ext5 17 4 3 12 5 0 4 1 22 17 12 Thabong Ext6 8 5 7 6 8 9 5 4 3 3 3 2 Thabong Ext7 21 1 1 0

13 Thabong Ext8 15

09 101 1 101 2 0

29 17 18 15 15 Thabong Ext9 20 17 5 9 9 34 43

Thabong Ext10 17 20 13 11 20 7 12

8 8 8 1

1 1

Thabong Ext11 0 0

Thabong Ext13 1 1 0 1 1 0 0 0 0 3 2 Thabong Ext14 1 1 0 1 0 0 0 0

3 4 3

Thabong Ext15 0 0 10 0 6 5 4

Thabong SP 2 2 3 0 1 0 1 1 0

27 Thabong SP1

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 3

Thabong SP2 1 0 0

5 4 Thabong SP3 1 0 20 0 0

9 8 9 7 7 Thelma 5 0 0 0 0 0 0

Tswelangpele SP

16 17 21 Ventersburg SP 15 12 0 1 1 0 0 0

Virginia Gold Mine

82 63 67 61 Virginia SP 35 48 46 15 9 7 3 12 3 2 2 2 Voorspoed 1 1 1 1 0 0 0 25 24 13 15 Welkom Central 17 18 6 13 2 0 0 0

2 2

Western Holdings Gold Mine 0 0

Whites SP

2008 2009 2010 2011 2012 2013 Year

Sales Type Total New Sales Total Repeat Sales 10.9 Total Sales by Property Value, Change from the Prior Year

This chart shows the change in activity for property sales (first two columns) and bonded property sales (third and fourth columns) from 2012 to 2013. It is possible to see important market shifts by comparing the change in activity within particular property markets from one year to the next.

Several subplaces have experienced an increase in both sales and bonds from 2012 – 2013, with only a few experiencing an increase in bonded sales over the same period. It is important to note that the highest increase in residential sales was in the under R250 000 value segment, however, there were no bonds associated with this value segment.

Suburbs with no information had no residential sales transactions in the past two years.

Market Activity: Total Sales and Change in Sales Matjhabeng, 2012 - 2013 Change in residential and bonded sales Allanridge SP 29 -50% Bedelia 63 60 42 38 Bronville 14 40% 44 33% Dagbreek 38 49 -100% 22 27 -50% Doorn 34 12 18 6 -40%-45% -100% Flamingo Park 72 25 92% 48 15 Harmony 23 20 9 6 -65%-40% Havengaville 1 1 Hennenman SP 28 -67% 11 -82% Hestersrus 2 100% 0 -100% Jan Cilliers Park 11 33 13 8 25 8 Jim Fouchepark 16 16 12 9 33% Kitty 10 -41% 5 -64% Kutloanong SP 14 -78% -71% Lake Veiw 200% Matjhabeng NU 0% Meloding SP 6 -54% 3 200% Merriespruit 9 10 53 -80% Merriespruit Gold Mine 0 0 Mimosa Park 4 0% 1 -50% Naudeville 73 36 34 14 Ou Dorp 28 9 Phathakahle SP 1 0 Philippi 9 -50%50% Reitzpark 20 -100% 12 -20% Rheederpark -71% 4 33% Riebeeckstad SP 141 22 4 92 11 -45% Ross Kent North 33 200% 12 Ross Kent South 11 0% 5 -29% Saaiplaas 21 19 9 -94% Sandania 8 0% -60% Seemeeu Park 20 100% 13 0% St Helena 20 17 -80% 4 10 9 -50% -67% Thabong Ext1 2 -33% 0 -100% Thabong Ext2 1 0 Thabong Ext4 9 -75% Thabong Ext5 7 9 600% 4 6 -50% Thabong Ext6 7 -50% Thabong Ext8 12 Thabong Ext9 6 -73% -75% Thabong Ext10 11 -27% 4 33% Thabong Ext11 1 0 Thabong Ext13 1 0% 0 Thabong Ext14 3 200% 0 Thabong SP 1 0% 0 Thabong SP2 1 -67% 0 Thabong SP3 5 150% 0 Thelma Ventersburg SP 17 100% -100% Virginia SP 35 34 20 13 -48%-67% Voorspoed -100% Welkom Central 9 -63% 100% Western Holdings Gold Mine 2 0% 0 0 50 100 150 -200% 0% 200% 400% 600% 0 20 40 60 80 100 -200% -100% 0% 100% 200% Total Residential Sales Change in Residential Sales Total Bonded Residential Sales Change in Bonded Residential Sales

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Property Value Segment Between R250k - R500k Between R500k - R1.2M Over R1.2M Under R250k

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Market Activity: Total Sales and Change from previous year 10.10 Change in New and Repeat Matjhabeng, 2012 - 2013 Change in new and repeat sales Sales Allanridge SP 29 -3% 6 200% Bedelia 120 -3% 3 -25% This chart shows the specific rate of activity 16 100% 2 0% Bronville of new and repeat sales from 2012 to Dagbreek 86 6% 3

Doorn 45 -27% 3 2013. As seen before, new sales are evident

Flamingo Park 89 19% 9 throughout the municipality.

Harmony 39 -17% 6 500% Harmony Gold Mine -100% Many of these developments built by the Havengaville 1 0% 0 Government are heading into their 8th year Hennenman SP 39 -32% 0

Hestersrus 2 100% 0 and become eligible for resale by their owners.

Jan Cilliers Park 54 0% 3 0% By understanding when those units come on Jim Fouchepark 32 -11% 0 -100% line for resale, Government can align policies Kitty 5 -69% 5 400% that encourage the sale and development Kutloanong SP 13 -70% 3 -63% nearby, which can help leverage that prior Lake Veiw 5 0% 0 investment, expand housing options and Matjhabeng NU 2 100% 0

Meloding SP 4 -50% 2 -67% stimulate movement up the next rung on

Merriespruit 17 -37% 2 the housing ladder. Resales are an important Merriespruit Gold Mine 0 0 means of recycling existing homes to make Mimosa Park 4 -20% 0 available more housing options. Mmamahabane SP Naudeville 68 10% 41 -2%

Ou Dorp 31 -6% 2 Suburbs with no information had no residential sales

Phathakahle SP 1 0 in the past two years. Philippi 13 -32% 0 Phomolong SP -100%

President Brand Gold Mine

Reitzpark 21 -16% 0 -100%

Rheederpark 7 -63% 0

Riebeeckstad SP 165 2% 8 33%

Ross Kent North 34 17% 2 100%

Ross Kent South 10 -23% 1 0%

Saaiplaas 21 -64% 20

Sandania 9 13% 0

Seemeeu Park 21 -5% 1 0%

St Helena 40 -41% 3 200%

St Helena Gold Mine

Thabong Ext1 2 -33% 0

Thabong Ext2 1 0

Thabong Ext3 -100% -100%

Thabong Ext4 9 29% 1 0%

Thabong Ext5 16 33% 1

Thabong Ext6 7 -42% 3 -63%

Thabong Ext7

Thabong Ext8 15 50% 0 -100%

Thabong Ext9 3 -80% 4 -56%

Thabong Ext10 12 50% 1 -86%

Thabong Ext11 1 0

Thabong Ext13 1 0% 0

Thabong Ext14 3 200% 0

Thabong Ext15 -100%

Thabong SP 1 0% 0

Thabong SP1

Thabong SP2 1 -67% 0

Thabong SP3 5 150% 0

Thelma 7 -13% 0

Tswelangpele SP

Ventersburg SP 21 24% 0

Virginia Gold Mine

Virginia SP 61 -9% 12 300%

Voorspoed 1 1 -67%

Welkom Central 15 15% 0 -100%

Western Holdings Gold Mine 0 2 0%

Whites SP

0 50 100 150 200 -200% 0% 200% 0 20 40 0% 500% Total Repeat Sales Change in Repeat Sales Total New Sales Change in New Sales

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Market Activity: Average Property Values and Sales Prices Matjhabeng, 2007 - 2013 Property value and sales price by suburb R 364K R 251K Allanridge SP

R 134K R 110K R 467K R 367K R 377K Bedelia R 261K

R 158K R 150K R 105K Bronville R 91K

R 450K R 358K R 397K Dagbreek R 275K

R 548K R 432K R 454K Doorn R 330K

R 530K R 420K R 425K Flamingo Park R 297K

R 454K R 352K R 354K Harmony R 288K

R 560K

Harmony Gold Mine R 288K R 245K

R 150K

R 1 500K

Havengaville

R 289K R 370K R 298K R 509K R 399K Hennenman SP R 324K R 354K

R 357K

R 234K Hestersrus R 213K R 134K

R 750K R 591K R 667K Jan Cilliers Park R 409K

R 1 115K R 863K R 1 086K Jim Fouchepark R 801K

R 365K R 285K Kitty R 218K

R 97K R 142K R 102K Kutloanong SP R 94K R 80K

R 405K R 316K Lake Veiw R 307K R 163K

Matjhabeng NU R 702K R 498K R 388K R 345K

R 130141K R 93K Meloding SP

R 42K R 461K R 359K Merriespruit R 224K R 248K

R 262K R 172K Merriespruit Gold Mine

R 404K R 316K R 341K R 325K Mimosa Park

R 88K R 58K Mmamahabane SP Market Activity: Average Property Values and Sales Prices Matjhabeng, 2007 - 2013 R 540K Property value and sales price by suburb R 426K R 364K Naudeville R 326K R 312K R 251K Allanridge SP R 443K R 134K R 110K R 346K R 467K Ou Dorp R 319K R 367K R 377K R 232K Bedelia R 261K

R 158K Phathakahle SP R 150K R 66K R 105K R 48K Bronville R 55K R 91K R 35K R 442K R 345K R 450K Philippi R 358K R 279K R 397K R 225K Dagbreek R 275K R 143K R 548K Phomolong SP R 94K R 432K R 454K Doorn R 330K R 51K R 43K

R 530K President Brand Gold Mine R 420K R 425K Flamingo Park R 297K R 339K

R 454K R 235K R 272K Reitzpark R 352K R 193K R 354K Harmony R 288K R 243K R 162K R 560K Rheederpark R 168K R 133K Harmony Gold Mine R 245K R 288K R 589K R 150K R 461K R 1 500K Riebeeckstad SP R 404K R 428K

Havengaville

R 289K R 370K R 344K R 298K R 248K R 509K Ross Kent North R 232K R 399K R 192K Hennenman SP R 324K R 354K R 377K

R 357K R 248K Ross Kent South R 205K R 211K R 234K Hestersrus R 213K R 134K R 255K

R 750K R 172K Saaiplaas R 591K R 667K R 119K R 133K Jan Cilliers Park R 409K R 371K

R 1 115K R 254K R 295K R 1 086K Sandania R 863K R 191K Jim Fouchepark R 801K R 418K R 332K R 365K Seemeeu Park R 314K R 285K R 232K Kitty R 218K R 616K R 97K R 479K R 534K R 142K St Helena R 102K R 253K Kutloanong SP R 94K R 80K

R 405K St Helena Gold Mine R 316K Lake Veiw R 307K R 163K R 168K R 119K Thabong Ext1 R 128K Matjhabeng NU R 702K R 498K R 33K R 388K R 188K R 345K R 135K R 141130K Thabong Ext2 R 93K Meloding SP R 50K R 18K R 42K R 201K R 461K Thabong Ext3 R 359K R 144K Merriespruit R 74K R 60K R 224K R 248K R 197K R 144K R 262K Thabong Ext4 R 149K R 172K R 103K Merriespruit Gold Mine R 336K R 237K R 404K Thabong Ext5 R 221K R 316K R 341K R 325K R 158K Mimosa Park R 292K R 212K R 88K Thabong Ext6 R 189K R 58K R 125K Mmamahabane SP R 297K R 229K R 540K R 230K Thabong Ext7 R 426K Naudeville R 112K R 326K R 312K R 159K R 114K R 138K R 443K Thabong Ext8 30 R 346K R 96K Ou Dorp R 319K R 232K R 178K The Housing Development Agency |R Matjhabeng128K Mining Town Housing Market Report Thabong Ext9 R 89K R 66K Phathakahle SP R 66K R 48K R 55K R 35K R 149171K R 442K Thabong Ext10 R 105K R 345K Philippi R 279K R 41K R 225K R 187K R 135R 170K K R 143K Thabong Ext11 R 100K Phomolong SP R 94K R 158K R 51K R 43K R 113K Thabong Ext13

President Brand Gold Mine R 30K R 25K R 136K R 100K R 339K Thabong Ext14 R 235K R 272K Reitzpark R 43K R 193K R 20K

R 230K R 183K R 243K Thabong Ext15 R 132K R 162K Rheederpark R 168K R 83K R 133K R 175K R 155K R 589K R 113K Thabong SP R 461K Riebeeckstad SP R 404K R 428K R 30K

R 344K Thabong SP1 R 248K Ross Kent North R 232K R 192K R 73K R 72K R 377K R 49K Thabong SP2 R 45K R 248K Ross Kent South R 205K R 211K R 62K

R 255K R 41K Thabong SP3 R 41K R 172K R 30K Saaiplaas R 119K R 133K R 433K R 338K R 371K Thelma R 231K R 254K R 295K R 193K Sandania R 191K R 88K

R 418K R 58K Tswelangpele SP R 332K Seemeeu Park R 314K R 232K R 298K R 616K Ventersburg SP R 203K R 479K R 214K R 534K R 165K St Helena R 253K

Virginia Gold Mine

St Helena Gold Mine R 515K R 397K Virginia SP R 168K R 297K R 119K R 210K Thabong Ext1 R 128K R 704K R 33K R 563K R 700K R 188K Voorspoed R 135K Thabong Ext2 R 287K

R 50K R 18K R 544K R 520K R 467K Welkom Central R 201K R 336K Thabong Ext3 R 144K R 148K R 74K R 60K R 113K R 197K Western Holdings Gold Mine R 144K Thabong Ext4 R 149K R 103K R 26K R 34K

R 336K Whites SP R 237K Thabong Ext5 R 221K R 158K 2008 2009 2010 2011 2012 2013

R 292K Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. R 212K Thabong Ext6 Measure Names R 189K Avg Property Value R 125K Avg Sales Price

R 297K R 229K R 230K Thabong Ext7 R 112K

R 159K R 114K R 138K Thabong Ext8 R 96K

R 178K R 128K Thabong Ext9 R 89K R 66K

R 171149K

Thabong Ext10 R 105K

R 41K R 187K R 135R 170K K Thabong Ext11 R 100K

R 158K R 113K Thabong Ext13

R 30K R 25K R 136K R 100K Thabong Ext14

R 20K R 43K

R 230K R 183K Thabong Ext15 R 132K

R 83K

R 175K R 155K R 113K Thabong SP

R 30K

Thabong SP1

R 73K R 72K R 49K Thabong SP2 R 45K

R 62K R 41K Thabong SP3 R 41K R 30K

R 433K R 338K Thelma R 231K R 193K

R 88K R 58K Tswelangpele SP

R 298K Ventersburg SP R 203K R 214K R 165K

Virginia Gold Mine

R 515K R 397K Virginia SP R 297K R 210K

R 704K R 563K R 700K Voorspoed R 287K

R 544K R 520K R 467K Welkom Central R 336K

R 148K R 113K Western Holdings Gold Mine

R 26K R 34K

Whites SP

2008 2009 2010 2011 2012 2013

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Measure Names Avg Property Value Avg Sales Price Market Activity: Average Property Values and Sales Prices Matjhabeng, 2007 - 2013 Property value and sales price by suburb R 364K R 251K Allanridge SP

R 134K R 110K R 467K R 367K R 377K Bedelia R 261K

R 158K R 150K R 105K Bronville R 91K

R 450K R 358K R 397K Dagbreek R 275K

R 548K R 432K R 454K Doorn R 330K

R 530K R 420K R 425K Flamingo Park R 297K

R 454K R 352K R 354K Harmony R 288K

R 560K

Harmony Gold Mine R 245K R 288K

R 150K

R 1 500K

Havengaville

R 289K R 370K R 298K R 509K R 399K Hennenman SP R 324K R 354K

R 357K

R 234K Hestersrus R 213K R 134K

R 750K R 591K R 667K Jan Cilliers Park R 409K

R 1 115K R 863K R 1 086K Jim Fouchepark R 801K

R 365K R 285K Kitty R 218K

R 97K R 142K R 102K Kutloanong SP R 94K R 80K

R 405K R 316K Lake Veiw R 307K R 163K

Matjhabeng NU R 702K R 498K R 388K R 345K

R 141130K R 93K Meloding SP

R 42K R 461K R 359K Merriespruit R 224K R 248K

R 262K

R 172K Merriespruit Gold Mine

R 404K R 316K R 341K R 325K Mimosa Park

R 88K

R 58K Mmamahabane SP

R 540K R 426K Naudeville R 326K R 312K

R 443K R 346K Ou Dorp R 319K R 232K

Phathakahle SP R 66K R 48K R 55K R 35K R 442K R 345K Philippi R 279K R 225K

R 143K

Phomolong SP R 94K

R 51K R 43K

President Brand Gold Mine

R 339K

R 235K R 272K Reitzpark R 193K

R 243K R 162K Rheederpark R 168K R 133K

R 589K R 461K Riebeeckstad SP R 404K R 428K

R 344K R 248K Ross Kent North R 232K R 192K

R 377K

R 248K Ross Kent South R 205K R 211K

R 255K R 172K Saaiplaas R 119K R 133K

R 371K

R 254K R 295K Sandania R 191K

R 418K R 332K Seemeeu Park R 314K R 232K

R 616K R 479K R 534K St Helena R 253K

St Helena Gold Mine

R 168K R 119K Thabong Ext1 R 128K

R 33K R 188K R 135K Thabong Ext2

R 50K R 18K

R 201K Thabong Ext3 R 144K

R 74K R 60K R 197K R 144K Thabong Ext4 R 149K R 103K

R 336K R 237K Thabong Ext5 R 221K R 158K

R 292K R 212K Thabong Ext6 R 189K R 125K

R 297K R 229K R 230K Thabong Ext7 R 112K

R 159K R 114K R 138K Thabong Ext8 R 96K

R 178K 10.11 Average Property Values R 128K Thabong Ext9 and Sales Price R 89K R 66K

R 171149K The relationship between local sales Thabong Ext10 R 105K prices (orange lines) and average R 41K R 187K property values (blue lines) can tell much R 135R 170K K Thabong Ext11 about the activity and integration of R 100K supply and demand. Every house in a R 158K suburb has a value, determined by the R 113K Thabong Ext13 number of sales, changes in prices, churn R 30K R 25K R 136K (repeat sales) and other factors present R 100K Thabong Ext14 in a robust housing market. Only houses

R 20K R 43K that have been sold have sales prices but

R 230K R 183K this lowers the value of homes in markets Thabong Ext15 R 132K with fewer sales. R 83K

R 175K R 155K R 113K Thabong SP As markets formalise and strengthen,

R 30K these trends inform each other more effectively and the trend lines Thabong SP1 become almost parallel over time

R 73K (such as Bedelia, Dagbreek, Doorn R 72K R 49K and Flamingo Park). Although sales Thabong SP2 R 45K prices have fluctuated,almost all the R 62K subplaces in the municipality have R 41K Thabong SP3 R 41K R 30K consistently sold below their value.

R 433K R 338K Thelma Sales prices in affordable areas more R 231K R 193K often reflect access to credit, than interest R 88K in the neighbourhood. R 58K Tswelangpele SP

R 298K Ventersburg SP R 203K R 214K R 165K

Virginia Gold Mine

R 515K R 397K Virginia SP R 297K R 210K

R 704K R 563K R 700K Voorspoed R 287K

R 544K R 520K R 467K Welkom Central R 336K

R 148K R 113K Western Holdings Gold Mine

R 26K R 34K

Whites SP

2008 2009 2010 2011 2012 2013

Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Measure Names Avg Property Value Avg Sales Price

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 11. Lending Activity

11.1 Key Findings

Lending is dispersed throughout Matjhabeng, by area and loan size. Although bonded sales are almost entirely concentrated in housing and sales over R250 000, those loans are predominantly concentrated in one central area in the municipality. The share of lending by each of the four major banks in the Country and other lenders increased incrementally from 2008 – 2013; the increase in lending by other lenders may be due to increased mining activity requiring expanded staff deployment, or to make up for the lack of lending growth by the existing institutions.

11.12 Policy Implications

Policies and programmes should target expanding access to credit, including the creation of new funds, with broader investment guidelines and possibilities and small loan programmes with which to make financing more accessible to lower-income households. Loans to entice the development of more middle market housing would create more integrated markets.

Programmes should also make creative financing available for rental projects.

11.3 Quick Definitions:

Lending Activity: the performance of key lending indicators over time, such as bond volume, new loans and bonded sales, by lending institution.

Portfolio Size: the total number and value of loans given out by particular lending institutions in the study area

Property Value Segment: in order to better understand the performance of housing markets, data has been aggregated into four property value bands: properties valued under R250 000; between R250 000 and R500 000; between R500 000 and R1.2 million and over R1.2 million. This helps one to understand the various trends and strengths inherent in each segment and to see how properties are integrating across the housing continuum, especially over time.

Residential Bond: a loan made for the intention of acquiring a property, which is secured by the title to the property. These are determined by the property address and the timing with which bonds and sales transactions are recorded on the deeds registry.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report All Loans by Lender 11.4 Lending Over Time Matjhabeng, 2008 - 2013 Total value of residential bonds by lender R 5 500M Loan data taken from the deeds registry can provide lending activity by lender, R 5 000M which has grown consistently in the area.

R 4 500M By comparing the top chart (all loans held R 1 811M by each lender) and the bottom chart R 4 000M R 1 748M (activity by lender per year) it is possible R 1 687M to note that, while the lending in the area s R 1 643M d R 3 500M n

o R 1 585M has consistently grown, the amount per B

l R 1 547M a i t R 3 000M R 780M year varies from lender to lender. As an n e R 717M d

i example, annual lending has increased s

e R 663M R

R 2 500M f R 613M incrementally among all lenders between o

e R 567M

u 2008 and 2013. l R 538M R 978M a R 2 000M V R 948M R 917M R 892M Of note has been the infusion of other R 1 500M R 850M R 811M lenders into the area; from 2008 – 2013 R 1 282M lending activity by other lenders has R 1 000M R 1 168M R 1 048M R 930M increased incrementally over this R 817M R 854M R 500M period. R 316M R 352M R 393M R 0M R 221M R 258M R 281M 2008 2009 2010 2011 2012 2013 This is most often employer-assisted Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. lending, primarily from companies Banks ABSA providing home loan benefits to their FNB Nedbank employees. The lending may reflect Standard Bank SA Other Lenders increased mining activity, requiring staff deployment in the area.

New Loans by Lender Matjhabeng, 2008 - 2013 The following charts explore lending Total value of residential bonds by lender by bank by suburb to understand more R 450M specifically where bank investment has been made by suburb and what that may mean about financing availability for R 400M R 106M various development sites and scenarios.

R 350M

R 300M R 67M

d R 63M

n R 62M

a R 250M R 44M

d R 83M

s R 59M e R 53M R 63M

R R 51M

w R 200M

R 32M R 29M R 24M R 38M R 45M R 150M

R 30M R 42M R 152M R 100M R 114M R 39M R 117M R 120M

R 77M R 50M R 37M

R 41M R 34M R 37M R 35M R 35M R 23M R 0M 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

Banks ABSA FNB Nedbank SBSA Other Lenders

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report New Loans by Lender 11.5 New Loans by Lender Matjhabeng, 2008 - 2013 The value of new bonds by lender by suburb over time Matjhabeng As markets shift, different lenders respond in Standard Other ABSA FNB Nedbank Bank Lenders different ways. These maps show the previous Allanridge SP 2008 R 3,286,926 R 564,000 R 111,517 R 923,300 R 2,813,728 2009 R 1,046,500 R 882,000 R 0 R 0 R 3,464,862 bar charts on a map. The first chart -all loans by 2010 R 570,000 R 160,000 R 0 R 78,000 R 387,000 2011 R 109,000 R 130,000 R 0 R 955,000 R 430,000 lender – is represented on the top map. All loans 2012 R 234,000 R 100,000 R 205,700 R 1,079,100 R 0 2013 R 250,000 R 368,800 R 0 R 660,800 R 0 made last year – the second chart – is shown on Bedelia 2008 R 6,872,000 R 5,392,555 R 5,186,948 R 8,146,020 R 1,923,980 2009 R 2,522,300 R 3,109,500 R 2,699,563 R 2,850,500 R 2,469,091 the lower map. By comparing the two maps, 2010 R 8,489,000 R 5,811,250 R 4,646,034 R 8,026,000 R 2,335,448 2011 R 3,166,250 R 2,653,000 R 2,134,333 R 13,603,500 R 2,182,880 it’s possible to see where lenders invested 2012 R 8,364,025 R 3,964,750 R 4,507,354 R 9,791,000 R 2,073,000 2013 R 3,681,500 R 9,171,750 R 666,902 R 14,065,800 R 4,570,000 loans in the last year (pies in the bottom Bronville 2008 R 130,000 R 368,680 R 503,703 R 577,291 R 294,877 2009 R 0 R 120,000 R 108,000 R 0 R 120,579 map) and how that has changed from their 2010 R 120,000 R 50,000 R 0 R 1,377,000 R 0 2011 R 400,000 R 475,000 R 200,000 R 753,500 R 0 overall portfolio in that suburb (pies in the 2012 R 187,000 R 180,000 R 0 R 180,000 R 0 2013 R 0 R 539,000 R 506,400 R 790,200 R 0 top map). Dagbreek 2008 R 8,736,614 R 6,843,163 R 4,404,850 R 11,328,600 R 2,580,270 2009 R 1,502,400 R 2,280,000 R 2,296,550 R 2,542,500 R 1,827,937 2010 R 3,924,500 R 4,770,500 R 2,013,446 R 5,524,960 R 1,640,000 2011 R 2,246,000 R 2,650,000 R 2,714,271 R 10,582,752 R 4,020,000 Non-traditional lenders, such as private equity 2012 R 2,605,000 R 3,219,882 R 2,650,551 R 8,283,900 R 1,463,000 2013 R 6,060,800 R 5,854,100 R 1,624,400 R 6,439,600 R 1,427,500 funds and employer lenders, have more flexible Doorn 2008 R 3,615,387 R 2,085,428 R 6,653,827 R 5,949,049 R 1,937,561 2009 R 1,943,000 R 895,000 R 894,973 R 1,261,000 R 1,342,217 regulatory environments and more creative, 2010 R 3,675,000 R 2,897,500 R 2,569,424 R 3,098,700 R 1,176,497 2011 R 3,004,550 R 1,616,000 R 842,059 R 5,947,560 R 3,180,000 competitive financing tools. It will be important 2012 R 3,158,000 R 3,703,000 R 416,158 R 7,614,000 R 1,505,000 2013 R 2,433,000 R 2,253,000 R 1,327,700 R 4,081,400 R 790,000 for Government to engage these investors as Flamingo Park 2008 R 6,290,600 R 4,321,608 R 4,670,475 R 6,214,500 R 1,071,607 2009 R 1,557,000 R 1,703,650 R 1,354,678 R 738,000 R 1,233,912 well to ease access to credit, lower costs of 2010 R 3,238,000 R 3,612,400 R 1,282,573 R 8,421,400 R 981,975 financing and share in the commitment towards 2011 R 1,915,000 R 4,736,000 R 1,994,279 R 8,471,900 R 3,490,000 2012 R 4,358,400 R 4,261,000 R 2,648,840 R 8,604,700 R 2,540,000 growing housing markets in the mining towns. 2013 R 5,697,700 R 4,808,200 R 2,243,400 R 12,017,900 R 3,210,000 Harmony 2008 R 3,768,200 R 2,567,013 R 1,470,114 R 2,661,150 R 1,451,000 2009 R 1,880,500 R 515,000 R 253,705 R 1,186,420 R 370,000 2010 R 1,356,250 R 475,000 R 0 R 1,663,750 R 290,000 2011 R 1,733,000 R 597,500 R 0 R 1,692,800 R 0 2012 R 2,544,770 R 1,326,250 R 132,000 R 1,725,300 R 410,000 2013 R 1,525,000 R 1,580,800 R 0 R 2,298,710 R 1,590,000 Harmony Gold 2008 R 0 R 0 R 0 R 250,000 Mine 2009 R 0 R 0 R 403,420 R 0 2010 R 128,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 2012 R 900,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 Havengaville 2008 R 0 R 268,286 R 0 R 261,000 2009 R 0 R 0 R 0 R 324,000 2010 R 0 R 0 R 272,987 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 272,987 R 0 2013 R 0 R 0 R 0 R 1,000,000 Hennenman SP 2008 R 4,695,226 R 2,016,557 R 798,106 R 3,479,100 R 1,104,000 2009 R 1,281,250 R 973,900 R 1,427,122 R 1,940,400 R 770,000 2010 R 2,129,000 R 1,466,000 R 862,122 R 1,947,000 R 538,351 2011 R 1,988,000 R 3,038,435 R 424,492 R 1,645,500 R 990,000 2012 R 3,439,000 R 1,135,000 R 850,000 R 4,821,400 R 1,040,000 2013 R 993,000 R 650,000 R 0 R 960,000 R 1,420,000 Hestersrus 2008 R 75,000 R 295,295 R 347,400 R 362,800 R 537,027 2009 R 0 R 0 R 0 R 0 R 217,101 2010 R 0 R 180,000 R 389,000 R 0 R 320,000 2011 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 565,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Jan Cilliers 2008 R 2,431,000 R 2,961,211 R 5,865,651 R 5,431,400 R 390,342 Park 2009 R 2,547,500 R 1,196,200 R 2,226,055 R 2,614,750 R 1,105,000 2010 R 3,797,000 R 2,157,000 R 2,770,021 R 5,568,500 R 560,000 2011 R 3,301,687 R 2,177,500 R 0 R 7,990,500 R 4,512,500 2012 R 1,838,000 R 4,378,500 R 1,342,971 R 7,444,500 R 2,800,000 2013 R 4,299,000 R 6,091,000 R 2,025,700 R 12,618,916 R 2,010,000 Jim 2008 R 6,935,000 R 7,508,186 R 10,238,217 R 3,551,450 R 2,278,358 Fouchepark 2009 R 1,242,000 R 0 R 6,033,654 R 1,375,000 R 837,027 2010 R 2,084,200 R 1,925,000 R 8,612,576 R 2,390,000 R 1,431,800 2011 R 2,632,500 R 6,055,000 R 900,000 R 4,405,000 R 3,510,000 2012 R 2,175,000 R 2,295,000 R 7,607,100 R 7,426,000 R 8,600,000 2013 R 8,657,500 R 1,380,000 R 10,700,000 R 4,226,500 R 5,830,000 Kitty 2008 R 1,388,500 R 300,000 R 307,184 R 0 R 0 2009 R 120,000 R 200,000 R 0 R 230,000 R 238,990 2010 R 181,000 R 284,000 R 0 R 730,000 R 0 2011 R 497,000 R 427,000 R 0 R 470,000 R 0 2012 R 335,000 R 1,441,000 R 0 R 1,446,500 R 120,000 2013 R 430,000 R 0 R 118,700 R 2,020,740 R 340,000 Kutloanong SP 2008 R 602,600 R 603,285 R 382,758 R 878,200 R 255,105 2009 R 0 R 683,400 R 185,006 R 210,000 R 613,267 2010 R 89,000 R 440,000 R 0 R 198,000 R 0 2011 R 0 R 575,000 R 154,280 R 683,000 R 0 2012 R 492,000 R 630,000 R 200,000 R 1,136,200 R 0 2013 R 275,000 R 0 R 0 R 523,500 R 280,000 Lake Veiw 2008 R 358,000 R 273,000 R 883,206 R 518,400 R 0 2009 R 0 R 0 R 151,995 R 650,750 R 79,054 2010 R 0 R 260,000 R 0 R 130,000 R 450,000 2011 R 0 R 0 R 0 R 304,200 R 0 2012 R 456,000 R 0 R 0 R 383,000 R 0 2013 R 0 R 635,000 R 0 R 642,000 R 0 Matjhabeng NU 2008 R 430,000 R 0 R 0 R 900,000 R 0 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 1,630,000 R 1,882,500 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 288,000 R 0 R 0 R 0 R 0 Meloding SP 2008 R 186,000 R 436,409 R 0 R 387,800 R 227,850 2009 R 81,000 R 214,800 R 0 R 66,500 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 140,000 R 215,000 R 0 R 555,000 R 350,000 2012 R 80,000 R 160,000 R 0 R 0 R 0 2013 R 162,000 R 435,642 R 0 R 0 R 0 Merriespruit 2008 R 2,421,050 R 322,222 R 2,416,582 R 2,184,700 R 113,700 2009 R 505,000 R 190,000 R 271,905 R 420,000 R 833,995 34 2010 R 800,000 R 350,000 R 0 R 2,289,890 R 750,000 2011 R 390,397 R 335,000 R 0 R 731,600 R 1,190,000 2012 R 1,307,350 R 652,000 R 505,700 R 2,348,000 R 190,000 2013 R 275,700 R 1,312,500 R 0 R 543,000 TheR 430,000 Housing Development Agency | Matjhabeng Mining Town Housing Market Report Merriespruit 2008 R 0 R 0 R 0 R 0 R 0 Gold Mine 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Mimosa Park 2008 R 0 R 450,000 R 0 R 936,400 R 74,000 2009 R 150,000 R 0 R 372,244 R 0 R 0 2010 R 419,000 R 0 R 0 R 0 R 430,000 2011 R 0 R 0 R 0 R 0 R 300,000 2012 R 380,000 R 0 R 0 R 426,400 R 460,000 2013 R 0 R 0 R 0 R 396,000 R 0 Naudeville 2008 R 3,215,000 R 1,893,301 R 3,993,236 R 5,466,600 R 2,269,965 2009 R 2,028,500 R 560,000 R 4,052,615 R 2,036,000 R 960,160 2010 R 3,370,000 R 844,300 R 1,336,095 R 3,191,250 R 1,170,000 2011 R 2,633,000 R 1,884,250 R 1,707,569 R 7,309,891 R 1,800,000 2012 R 3,455,200 R 4,090,000 R 1,950,400 R 3,403,000 R 1,600,000 2013 R 4,564,000 R 3,408,750 R 1,025,000 R 8,633,100 R 3,880,000 Ou Dorp 2008 R 3,833,700 R 2,263,200 R 2,809,067 R 3,128,728 R 960,000 2009 R 924,000 R 849,900 R 550,787 R 650,000 R 1,323,679 2010 R 1,192,000 R 380,000 R 906,037 R 1,260,300 R 990,000 2011 R 935,000 R 1,021,737 R 1,189,911 R 1,230,000 R 1,140,000 2012 R 1,308,330 R 0 R 0 R 2,699,000 R 0 2013 R 885,200 R 1,005,000 R 0 R 1,316,700 R 1,580,000 Phathakahle 2008 R 0 R 0 R 0 R 0 SP 2009 R 0 R 127,200 R 0 R 343,629 2010 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 Philippi 2008 R 1,616,380 R 477,000 R 345,600 R 656,000 R 369,394 2009 R 2,296,000 R 0 R 1,212,222 R 0 R 400,000 2010 R 255,000 R 161,000 R 0 R 0 R 0 2011 R 293,000 R 1,417,250 R 364,013 R 1,809,000 R 0 2012 R 793,500 R 517,500 R 0 R 291,200 R 100,000 2013 R 728,000 R 1,015,000 R 0 R 620,000 R 0 Phomolong SP 2008 R 58,700 R 0 R 0 R 434,800 R 0 2009 R 0 R 192,000 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 308,360 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Reitzpark 2008 R 1,601,000 R 1,777,061 R 1,744,061 R 1,412,000 R 740,000 2009 R 110,500 R 510,000 R 487,000 R 680,300 R 1,851,471 2010 R 535,000 R 632,000 R 160,000 R 730,500 R 615,681 2011 R 785,000 R 955,000 R 402,736 R 1,765,900 R 450,000 2012 R 629,650 R 1,864,000 R 0 R 1,423,000 R 0 2013 R 1,590,000 R 1,172,500 R 0 R 1,515,100 R 0 Rheederpark 2008 R 1,037,644 R 290,188 R 1,813,473 R 275,000 R 200,727 2009 R 1,030,750 R 1,117,807 R 222,504 R 548,000 R 778,300 2010 R 680,000 R 150,000 R 120,753 R 393,000 R 250,000 2011 R 0 R 180,000 R 0 R 551,500 R 370,000 2012 R 41,601 R 0 R 0 R 541,400 R 0 2013 R 99,000 R 515,000 R 0 R 476,800 R 60,000 Riebeeckstad 2008 R 21,020,203 R 8,079,132 R 12,916,855 R 23,663,130 R 4,506,793 SP 2009 R 7,737,750 R 6,628,870 R 7,153,423 R 6,277,450 R 6,267,746 2010 R 10,446,240 R 7,213,500 R 8,566,692 R 16,194,900 R 3,280,000 2011 R 8,580,600 R 6,537,000 R 5,492,597 R 20,993,200 R 6,070,000 2012 R 9,385,500 R 10,613,500 R 3,831,100 R 25,923,500 R 5,095,000 2013 R 8,332,800 R 11,000,700 R 2,196,200 R 21,810,700 R 8,217,000 Ross Kent 2008 R 1,794,000 R 980,408 R 2,469,949 R 2,889,800 R 629,884 North 2009 R 979,000 R 202,000 R 0 R 386,442 R 1,772,458 2010 R 191,000 R 470,000 R 1,399,549 R 0 R 400,000 2011 R 470,000 R 856,000 R 756,080 R 1,008,000 R 0 2012 R 884,000 R 1,029,000 R 77,902 R 1,226,000 R 0 2013 R 550,000 R 1,109,030 R 0 R 1,330,400 R 630,000 Ross Kent 2008 R 1,319,200 R 0 R 302,400 R 420,000 R 290,000 South 2009 R 0 R 0 R 0 R 0 R 534,210 2010 R 204,000 R 250,000 R 241,271 R 782,300 R 0 2011 R 0 R 225,000 R 0 R 265,500 R 0 2012 R 588,500 R 451,500 R 0 R 1,271,000 R 310,000 2013 R 0 R 790,000 R 0 R 420,000 R 0 Saaiplaas 2008 R 2,721,000 R 1,519,170 R 651,630 R 1,907,825 R 832,338 2009 R 707,410 R 943,850 R 282,736 R 670,400 R 165,585 2010 R 685,000 R 1,596,600 R 502,371 R 594,000 R 150,000 2011 R 1,070,000 R 311,000 R 0 R 1,128,500 R 300,000 2012 R 50,000 R 0 R 0 R 303,570 R 0 2013 R 210,000 R 292,000 R 480,000 R 2,050,000 R 0 Sandania 2008 R 493,000 R 250,000 R 1,116,102 R 235,000 R 0 2009 R 0 R 346,000 R 109,756 R 502,000 R 179,275 2010 R 245,000 R 657,000 R 0 R 583,500 R 860,000 2011 R 0 R 172,000 R 0 R 1,274,000 R 0 2012 R 1,357,500 R 0 R 0 R 690,000 R 0 2013 R 0 R 0 R 0 R 555,000 R 0 Seemeeu Park 2008 R 0 R 265,000 R 0 R 485,000 R 250,000 2009 R 839,000 R 261,250 R 853,154 R 0 R 539,515 2010 R 569,500 R 980,000 R 387,000 R 1,413,000 R 430,000 2011 R 888,000 R 1,265,000 R 240,000 R 1,735,000 R 0 2012 R 350,000 R 120,000 R 998,400 R 3,092,760 R 310,000 2013 R 350,000 R 1,011,200 R 252,000 R 1,941,000 R 925,000 St Helena 2008 R 8,492,000 R 2,112,192 R 2,681,737 R 6,200,250 R 538,649 2009 R 914,500 R 945,308 R 2,531,758 R 350,000 R 1,104,768 2010 R 4,585,000 R 215,000 R 2,838,623 R 2,812,900 R 280,000 2011 R 3,255,000 R 2,716,000 R 2,360,000 R 7,870,800 R 420,000 2012 R 4,266,700 R 3,530,000 R 880,000 R 8,333,000 R 5,187,500 2013 R 2,859,500 R 2,149,000 R 3,595,700 R 2,196,200 R 2,657,920 Thabong Ext1 2008 R 0 R 0 R 0 R 270,000 R 245,000 2009 R 0 R 194,400 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 140,000 R 0 R 150,000 R 0 2012 R 0 R 110,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong Ext2 2008 R 0 R 0 R 0 R 0 2009 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 Thabong Ext3 2008 R 0 R 500,000 R 85,000 R 70,000 R 0 2009 R 0 R 173,000 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong Ext4 2008 R 0 R 1,186,505 R 352,098 R 240,000 R 0 2009 R 43,300 R 190,000 R 0 R 71,250 R 283,289 2010 R 0 R 420,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 200,000 R 190,000 2012 R 225,000 R 0 R 0 R 435,000 R 0 2013 R 285,000 R 0 R 410,000 R 0 R 0 Thabong Ext5 2008 R 0 R 773,339 R 960,290 R 1,073,000 R 944,232 2009 R 0 R 520,800 R 676,527 R 878,000 R 332,573 2010 R 0 R 230,000 R 0 R 1,181,700 R 0 2011 R 360,000 R 1,520,000 R 0 R 1,891,400 R 0 2012 R 297,000 R 849,000 R 178,040 R 646,000 R 350,000 2013 R 280,000 R 1,269,200 R 400,000 R 224,000 R 0 Thabong Ext6 2008 R 0 R 1,467,553 R 170,718 R 1,046,520 R 112,519 2009 R 0 R 0 R 515,060 R 215,000 R 169,469 2010 R 165,000 R 2,125,000 R 240,999 R 480,000 R 218,272 2011 R 0 R 300,000 R 144,000 R 1,132,000 R 0 2012 R 242,250 R 400,000 R 0 R 1,176,000 R 0 2013 R 0 R 0 R 0 R 949,000 R 0 Thabong Ext7 2008 R 0 R 159,720 R 0 R 0 R 511,695 2009 R 0 R 220,000 R 0 R 0 R 0 2010 R 0 R 470,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 230,000 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong Ext8 2008 R 305,000 R 1,186,406 R 820,530 R 344,800 R 0 2009 R 0 R 322,519 R 0 R 85,500 R 135,195 2010 R 270,000 R 210,000 R 100,000 R 220,000 R 0 2011 R 325,000 R 534,500 R 0 R 0 R 0 2012 R 85,000 R 168,000 R 0 R 680,000 R 0 2013 R 240,000 R 130,000 R 0 R 477,800 R 0 Thabong Ext9 2008 R 241,500 R 441,622 R 148,643 R 326,400 R 90,000 2009 R 0 R 0 R 172,823 R 65,000 R 0 2010 R 0 R 797,500 R 118,940 R 0 R 0 2011 R 0 R 365,000 R 0 R 345,000 R 0 2012 R 140,000 R 0 R 150,000 R 326,000 R 0 2013 R 0 R 0 R 140,700 R 0 R 0 Thabong Ext10 2008 R 0 R 388,466 R 109,630 R 595,000 R 88,315 2009 R 0 R 173,362 R 0 R 0 R 201,231 2010 R 0 R 330,000 R 0 R 135,000 R 0 2011 R 0 R 165,000 R 0 R 166,000 R 0 2012 R 0 R 163,100 R 109,700 R 190,000 R 0 2013 R 210,000 R 952,400 R 0 R 180,000 R 0 Thabong Ext11 2008 R 170,000 2009 R 0 2010 R 0 2011 R 0 2012 R 0 2013 R 0 Thabong Ext13 2008 R 0 R 0 2009 R 0 R 0 2010 R 0 R 0 2011 R 0 R 0 2012 R 0 R 340,000 2013 R 0 R 0 Thabong Ext14 2008 R 0 R 0 2009 R 0 R 0 2010 R 110,000 R 0 2011 R 0 R 0 2012 R 0 R 0 2013 R 0 R 0 Thabong Ext15 2008 R 150,000 R 144,000 R 0 R 0 R 0 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 120,000 R 0 R 190,000 R 0 2012 R 0 R 230,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong SP 2008 R 0 R 0 R 200,870 R 1,455,000 R 0 2009 R 0 R 0 R 0 R 45,600 R 96,849 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 210,000 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 198,000 R 0 R 0 R 0 R 0 Thabong SP2 2008 R 0 R 0 2009 R 0 R 0 2010 R 0 R 0 2011 R 0 R 0 2012 R 0 R 0 2013 R 160,000 R 0 Thelma 2008 R 0 R 113,500 R 340,899 R 1,243,309 R 365,000 2009 R 80,000 R 322,800 R 290,782 R 585,000 R 405,638 2010 R 182,000 R 135,000 R 329,168 R 140,000 R 0 2011 R 0 R 380,000 R 340,000 R 140,000 R 0 2012 R 360,000 R 200,000 R 0 R 280,000 R 0 2013 R 500,000 R 0 R 315,000 R 150,000 R 0 Ventersburg 2008 R 1,721,000 R 505,000 R 412,542 R 965,000 R 0 SP 2009 R 309,500 R 550,000 R 312,907 R 142,500 R 175,000 2010 R 315,000 R 553,000 R 0 R 1,080,000 R 240,000 2011 R 0 R 268,000 R 0 R 120,000 R 0 2012 R 365,000 R 0 R 320,700 R 870,000 R 450,000 2013 R 250,000 R 69,000 R 0 R 315,000 R 0 Virginia SP 2008 R 3,776,500 R 618,445 R 2,963,013 R 2,837,909 R 2,384,306 2009 R 2,562,000 R 546,190 R 746,061 R 2,390,282 R 2,621,578 2010 R 3,443,000 R 1,731,252 R 714,248 R 3,378,400 R 1,394,593 2011 R 1,567,000 R 2,322,300 R 459,110 R 3,995,396 R 450,000 2012 R 3,557,440 R 1,143,250 R 1,114,700 R 3,610,300 R 480,000 2013 R 4,799,600 R 1,823,000 R 1,234,838 R 4,388,500 R 970,000 Voorspoed 2008 R 0 R 0 R 280,000 R 550,000 R 0 2009 R 0 R 0 R 0 R 0 R 450,000 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 200,000 R 0 R 0 R 0 2012 R 0 R 0 R 300,000 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Welkom 2008 R 465,000 R 1,870,000 R 969,418 R 39,051,800 R 0 Central 2009 R 990,000 R 735,000 R 267,198 R 3,729,000 R 0 2010 R 255,400 R 0 R 526,115 R 550,000 R 1,696,000 2011 R 1,050,000 R 760,000 R 0 R 1,087,200 R 0 2012 R 350,000 R 0 R 358,973 R 0 R 280,000 2013 R 555,000 R 0 R 0 R 840,000 R 0

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Banks ABSA FNB Nedbank Standard Bank Other Lenders New Loans by Lender Matjhabeng, 2008 - 2013 The value of new bonds by lender by suburb over time Matjhabeng Standard Other ABSA FNB Nedbank Bank Lenders Allanridge SP 2008 R 3,286,926 R 564,000 R 111,517 R 923,300 R 2,813,728 2009 R 1,046,500 R 882,000 R 0 R 0 R 3,464,862 2010 R 570,000 R 160,000 R 0 R 78,000 R 387,000 2011 R 109,000 R 130,000 R 0 R 955,000 R 430,000 2012 R 234,000 R 100,000 R 205,700 R 1,079,100 R 0 2013 R 250,000 R 368,800 R 0 R 660,800 R 0 Bedelia 2008 R 6,872,000 R 5,392,555 R 5,186,948 R 8,146,020 R 1,923,980 2009 R 2,522,300 R 3,109,500 R 2,699,563 R 2,850,500 R 2,469,091 2010 R 8,489,000 R 5,811,250 R 4,646,034 R 8,026,000 R 2,335,448 2011 R 3,166,250 R 2,653,000 R 2,134,333 R 13,603,500 R 2,182,880 2012 R 8,364,025 R 3,964,750 R 4,507,354 R 9,791,000 R 2,073,000 2013 R 3,681,500 R 9,171,750 R 666,902 R 14,065,800 R 4,570,000 Bronville 2008 R 130,000 R 368,680 R 503,703 R 577,291 R 294,877 2009 R 0 R 120,000 R 108,000 R 0 R 120,579 2010 R 120,000 R 50,000 R 0 R 1,377,000 R 0 2011 R 400,000 R 475,000 R 200,000 R 753,500 R 0 2012 R 187,000 R 180,000 R 0 R 180,000 R 0 2013 R 0 R 539,000 R 506,400 R 790,200 R 0 Dagbreek 2008 R 8,736,614 R 6,843,163 R 4,404,850 R 11,328,600 R 2,580,270 2009 R 1,502,400 R 2,280,000 R 2,296,550 R 2,542,500 R 1,827,937 2010 R 3,924,500 R 4,770,500 R 2,013,446 R 5,524,960 R 1,640,000 2011 R 2,246,000 R 2,650,000 R 2,714,271 R 10,582,752 R 4,020,000 2012 R 2,605,000 R 3,219,882 R 2,650,551 R 8,283,900 R 1,463,000 2013 R 6,060,800 R 5,854,100 R 1,624,400 R 6,439,600 R 1,427,500 Doorn 2008 R 3,615,387 R 2,085,428 R 6,653,827 R 5,949,049 R 1,937,561 2009 R 1,943,000 R 895,000 R 894,973 R 1,261,000 R 1,342,217 2010 R 3,675,000 R 2,897,500 R 2,569,424 R 3,098,700 R 1,176,497 2011 R 3,004,550 R 1,616,000 R 842,059 R 5,947,560 R 3,180,000 2012 R 3,158,000 R 3,703,000 R 416,158 R 7,614,000 R 1,505,000 2013 R 2,433,000 R 2,253,000 R 1,327,700 R 4,081,400 R 790,000 Flamingo Park 2008 R 6,290,600 R 4,321,608 R 4,670,475 R 6,214,500 R 1,071,607 2009 R 1,557,000 R 1,703,650 R 1,354,678 R 738,000 R 1,233,912 2010 R 3,238,000 R 3,612,400 R 1,282,573 R 8,421,400 R 981,975 2011 R 1,915,000 R 4,736,000 R 1,994,279 R 8,471,900 R 3,490,000 2012 R 4,358,400 R 4,261,000 R 2,648,840 R 8,604,700 R 2,540,000 2013 R 5,697,700 R 4,808,200 R 2,243,400 R 12,017,900 R 3,210,000 Harmony 2008 R 3,768,200 R 2,567,013 R 1,470,114 R 2,661,150 R 1,451,000 2009 R 1,880,500 R 515,000 R 253,705 R 1,186,420 R 370,000 2010 R 1,356,250 R 475,000 R 0 R 1,663,750 R 290,000 2011 R 1,733,000 R 597,500 R 0 R 1,692,800 R 0 2012 R 2,544,770 R 1,326,250 R 132,000 R 1,725,300 R 410,000 2013 R 1,525,000 R 1,580,800 R 0 R 2,298,710 R 1,590,000 Harmony Gold 2008 R 0 R 0 R 0 R 250,000 Mine 2009 R 0 R 0 R 403,420 R 0 2010 R 128,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 2012 R 900,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 Havengaville 2008 R 0 R 268,286 R 0 R 261,000 2009 R 0 R 0 R 0 R 324,000 2010 R 0 R 0 R 272,987 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 272,987 R 0 2013 R 0 R 0 R 0 R 1,000,000 Hennenman SP 2008 R 4,695,226 R 2,016,557 R 798,106 R 3,479,100 R 1,104,000 2009 R 1,281,250 R 973,900 R 1,427,122 R 1,940,400 R 770,000 2010 R 2,129,000 R 1,466,000 R 862,122 R 1,947,000 R 538,351 2011 R 1,988,000 R 3,038,435 R 424,492 R 1,645,500 R 990,000 2012 R 3,439,000 R 1,135,000 R 850,000 R 4,821,400 R 1,040,000 2013 R 993,000 R 650,000 R 0 R 960,000 R 1,420,000 Hestersrus 2008 R 75,000 R 295,295 R 347,400 R 362,800 R 537,027 2009 R 0 R 0 R 0 R 0 R 217,101 2010 R 0 R 180,000 R 389,000 R 0 R 320,000 2011 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 565,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Jan Cilliers 2008 R 2,431,000 R 2,961,211 R 5,865,651 R 5,431,400 R 390,342 Park 2009 R 2,547,500 R 1,196,200 R 2,226,055 R 2,614,750 R 1,105,000 2010 R 3,797,000 R 2,157,000 R 2,770,021 R 5,568,500 R 560,000 2011 R 3,301,687 R 2,177,500 R 0 R 7,990,500 R 4,512,500 2012 R 1,838,000 R 4,378,500 R 1,342,971 R 7,444,500 R 2,800,000 2013 R 4,299,000 R 6,091,000 R 2,025,700 R 12,618,916 R 2,010,000 Jim 2008 R 6,935,000 R 7,508,186 R 10,238,217 R 3,551,450 R 2,278,358 Fouchepark 2009 R 1,242,000 R 0 R 6,033,654 R 1,375,000 R 837,027 2010 R 2,084,200 R 1,925,000 R 8,612,576 R 2,390,000 R 1,431,800 2011 R 2,632,500 R 6,055,000 R 900,000 R 4,405,000 R 3,510,000 2012 R 2,175,000 R 2,295,000 R 7,607,100 R 7,426,000 R 8,600,000 2013 R 8,657,500 R 1,380,000 R 10,700,000 R 4,226,500 R 5,830,000 Kitty 2008 R 1,388,500 R 300,000 R 307,184 R 0 R 0 2009 R 120,000 R 200,000 R 0 R 230,000 R 238,990 2010 R 181,000 R 284,000 R 0 R 730,000 R 0 2011 R 497,000 R 427,000 R 0 R 470,000 R 0 2012 R 335,000 R 1,441,000 R 0 R 1,446,500 R 120,000 2013 R 430,000 R 0 R 118,700 R 2,020,740 R 340,000 Kutloanong SP 2008 R 602,600 R 603,285 R 382,758 R 878,200 R 255,105 2009 R 0 R 683,400 R 185,006 R 210,000 R 613,267 2010 R 89,000 R 440,000 R 0 R 198,000 R 0 2011 R 0 R 575,000 R 154,280 R 683,000 R 0 2012 R 492,000 R 630,000 R 200,000 R 1,136,200 R 0 2013 R 275,000 R 0 R 0 R 523,500 R 280,000 Lake Veiw 2008 R 358,000 R 273,000 R 883,206 R 518,400 R 0 2009 R 0 R 0 R 151,995 R 650,750 R 79,054 2010 R 0 R 260,000 R 0 R 130,000 R 450,000 2011 R 0 R 0 R 0 R 304,200 R 0 2012 R 456,000 R 0 R 0 R 383,000 R 0 2013 R 0 R 635,000 R 0 R 642,000 R 0 Matjhabeng NU 2008 R 430,000 R 0 R 0 R 900,000 R 0 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 1,630,000 R 1,882,500 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 288,000 R 0 R 0 R 0 R 0 Meloding SP 2008 R 186,000 R 436,409 R 0 R 387,800 R 227,850 2009 R 81,000 R 214,800 R 0 R 66,500 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 140,000 R 215,000 R 0 R 555,000 R 350,000 2012 R 80,000 R 160,000 R 0 R 0 R 0 2013 R 162,000 R 435,642 R 0 R 0 R 0 Merriespruit 2008 R 2,421,050 R 322,222 R 2,416,582 R 2,184,700 R 113,700 2009 R 505,000 R 190,000 R 271,905 R 420,000 R 833,995 2010 R 800,000 R 350,000 R 0 R 2,289,890 R 750,000 2011 R 390,397 R 335,000 R 0 R 731,600 R 1,190,000 2012 R 1,307,350 R 652,000 R 505,700 R 2,348,000 R 190,000 2013 R 275,700 R 1,312,500 R 0 R 543,000 R 430,000 Merriespruit 2008 R 0 R 0 R 0 R 0 R 0 Gold Mine 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 0 New Loans by Lender 2012 R 0 R 0 R 0 R 0 R 0 Matjhabeng, 2008 - 2013 2013 R 0 R 0 R 0 R 0 R 0 The value of new bonds by lender by suburb over time Mimosa Park 2008 R 0 R 450,000 R 0 R 936,400 R 74,000 2009 Matjhabeng R 150,000 R 0 R 372,244 R 0 R 0 2010 Standard Other R 419,000 R 0 R 0 R 0 R 430,000 ABSA FNB Nedbank 2011 Bank Lenders R 0 R 0 R 0 R 0 R 300,000 2012 R 380,000 R 0 R 0 R 426,400 R 460,000 Allanridge SP 2008 R 3,286,926 R 564,000 R 111,517 R 923,300 R 2,813,728 2013 R 0 R 0 R 0 R 396,000 R 0 2009 R 1,046,500 R 882,000 R 0 R 0 R 3,464,862 Naudeville 2008 R 3,215,000 R 1,893,301 R 3,993,236 R 5,466,600 R 2,269,965 2010 R 570,000 R 160,000 R 0 R 78,000 R 387,000 2009 R 2,028,500 R 560,000 R 4,052,615 R 2,036,000 R 960,160 2011 R 109,000 R 130,000 R 0 R 955,000 R 430,000 2010 R 3,370,000 R 844,300 R 1,336,095 R 3,191,250 R 1,170,000 2012 R 234,000 R 100,000 R 205,700 R 1,079,100 R 0 2011 R 2,633,000 R 1,884,250 R 1,707,569 R 7,309,891 R 1,800,000 2013 R 250,000 R 368,800 R 0 R 660,800 R 0 2012 R 3,455,200 R 4,090,000 R 1,950,400 R 3,403,000 R 1,600,000 Bedelia 2008 R 6,872,000 R 5,392,555 R 5,186,948 R 8,146,020 R 1,923,980 2013 R 4,564,000 R 3,408,750 R 1,025,000 R 8,633,100 R 3,880,000 2009 R 2,522,300 R 3,109,500 R 2,699,563 R 2,850,500 R 2,469,091 Ou Dorp 2008 R 3,833,700 R 2,263,200 R 2,809,067 R 3,128,728 R 960,000 2010 R 8,489,000 R 5,811,250 R 4,646,034 R 8,026,000 R 2,335,448 2009 R 924,000 R 849,900 R 550,787 R 650,000 R 1,323,679 2011 R 3,166,250 R 2,653,000 R 2,134,333 R 13,603,500 R 2,182,880 2010 R 1,192,000 R 380,000 R 906,037 R 1,260,300 R 990,000 2012 R 8,364,025 R 3,964,750 R 4,507,354 R 9,791,000 R 2,073,000 2011 R 935,000 R 1,021,737 R 1,189,911 R 1,230,000 R 1,140,000 2013 R 3,681,500 R 9,171,750 R 666,902 R 14,065,800 R 4,570,000 2012 R 1,308,330 R 0 R 0 R 2,699,000 R 0 Bronville 2008 R 130,000 R 368,680 R 503,703 R 577,291 R 294,877 2013 R 885,200 R 1,005,000 R 0 R 1,316,700 R 1,580,000 2009 R 0 R 120,000 R 108,000 R 0 R 120,579 Phathakahle 2008 R 0 R 0 R 0 R 0 2010 R 120,000 R 50,000 R 0 R 1,377,000 R 0 SP 2009 R 0 R 127,200 R 0 R 343,629 2011 R 400,000 R 475,000 R 200,000 R 753,500 R 0 2010 R 0 R 0 R 0 R 0 2012 R 187,000 R 180,000 R 0 R 180,000 R 0 2011 R 0 R 0 R 0 R 0 2013 R 0 R 539,000 R 506,400 R 790,200 R 0 2012 R 0 R 0 R 0 R 0 Dagbreek 2008 R 8,736,614 R 6,843,163 R 4,404,850 R 11,328,600 R 2,580,270 2013 R 0 R 0 R 0 R 0 2009 R 1,502,400 R 2,280,000 R 2,296,550 R 2,542,500 R 1,827,937 Philippi 2008 R 1,616,380 R 477,000 R 345,600 R 656,000 R 369,394 2010 R 3,924,500 R 4,770,500 R 2,013,446 R 5,524,960 R 1,640,000 2009 R 2,296,000 R 0 R 1,212,222 R 0 R 400,000 2011 R 2,246,000 R 2,650,000 R 2,714,271 R 10,582,752 R 4,020,000 2010 R 255,000 R 161,000 R 0 R 0 R 0 2012 R 2,605,000 R 3,219,882 R 2,650,551 R 8,283,900 R 1,463,000 2011 R 293,000 R 1,417,250 R 364,013 R 1,809,000 R 0 2013 R 6,060,800 R 5,854,100 R 1,624,400 R 6,439,600 R 1,427,500 2012 R 793,500 R 517,500 R 0 R 291,200 R 100,000 Doorn 2008 R 3,615,387 R 2,085,428 R 6,653,827 R 5,949,049 R 1,937,561 2013 R 728,000 R 1,015,000 R 0 R 620,000 R 0 2009 R 1,943,000 R 895,000 R 894,973 R 1,261,000 R 1,342,217 Phomolong SP 2008 R 58,700 R 0 R 0 R 434,800 R 0 2010 R 3,675,000 R 2,897,500 R 2,569,424 R 3,098,700 R 1,176,497 2009 R 0 R 192,000 R 0 R 0 R 0 2011 R 3,004,550 R 1,616,000 R 842,059 R 5,947,560 R 3,180,000 2010 R 0 R 0 R 0 R 0 R 0 2012 R 3,158,000 R 3,703,000 R 416,158 R 7,614,000 R 1,505,000 2011 R 0 R 308,360 R 0 R 0 R 0 2013 R 2,433,000 R 2,253,000 R 1,327,700 R 4,081,400 R 790,000 2012 R 0 R 0 R 0 R 0 R 0 Flamingo Park 2008 R 6,290,600 R 4,321,608 R 4,670,475 R 6,214,500 R 1,071,607 2013 R 0 R 0 R 0 R 0 R 0 2009 R 1,557,000 R 1,703,650 R 1,354,678 R 738,000 R 1,233,912 Reitzpark 2008 R 1,601,000 R 1,777,061 R 1,744,061 R 1,412,000 R 740,000 2010 R 3,238,000 R 3,612,400 R 1,282,573 R 8,421,400 R 981,975 2009 R 110,500 R 510,000 R 487,000 R 680,300 R 1,851,471 2011 R 1,915,000 R 4,736,000 R 1,994,279 R 8,471,900 R 3,490,000 2010 R 535,000 R 632,000 R 160,000 R 730,500 R 615,681 2012 R 4,358,400 R 4,261,000 R 2,648,840 R 8,604,700 R 2,540,000 2011 R 785,000 R 955,000 R 402,736 R 1,765,900 R 450,000 2013 R 5,697,700 R 4,808,200 R 2,243,400 R 12,017,900 R 3,210,000 2012 R 629,650 R 1,864,000 R 0 R 1,423,000 R 0 Harmony 2008 R 3,768,200 R 2,567,013 R 1,470,114 R 2,661,150 R 1,451,000 2013 R 1,590,000 R 1,172,500 R 0 R 1,515,100 R 0 2009 R 1,880,500 R 515,000 R 253,705 R 1,186,420 R 370,000 Rheederpark 2008 R 1,037,644 R 290,188 R 1,813,473 R 275,000 R 200,727 2010 R 1,356,250 R 475,000 R 0 R 1,663,750 R 290,000 2009 R 1,030,750 R 1,117,807 R 222,504 R 548,000 R 778,300 2011 R 1,733,000 R 597,500 R 0 R 1,692,800 R 0 2010 R 680,000 R 150,000 R 120,753 R 393,000 R 250,000 2012 R 2,544,770 R 1,326,250 R 132,000 R 1,725,300 R 410,000 2011 R 0 R 180,000 R 0 R 551,500 R 370,000 2013 R 1,525,000 R 1,580,800 R 0 R 2,298,710 R 1,590,000 2012 R 41,601 R 0 R 0 R 541,400 R 0 Harmony Gold 2008 R 0 R 0 R 0 R 250,000 2013 R 99,000 R 515,000 R 0 R 476,800 R 60,000 Mine 2009 R 0 R 0 R 403,420 R 0 Riebeeckstad 2008 R 21,020,203 R 8,079,132 R 12,916,855 R 23,663,130 R 4,506,793 2010 R 128,000 R 0 R 0 R 0 SP 2009 R 7,737,750 R 6,628,870 R 7,153,423 R 6,277,450 R 6,267,746 2011 R 0 R 0 R 0 R 0 2010 R 10,446,240 R 7,213,500 R 8,566,692 R 16,194,900 R 3,280,000 2012 R 900,000 R 0 R 0 R 0 2011 R 8,580,600 R 6,537,000 R 5,492,597 R 20,993,200 R 6,070,000 2013 R 0 R 0 R 0 R 0 2012 R 9,385,500 R 10,613,500 R 3,831,100 R 25,923,500 R 5,095,000 Havengaville 2008 R 0 R 268,286 R 0 R 261,000 2013 R 8,332,800 R 11,000,700 R 2,196,200 R 21,810,700 R 8,217,000 2009 R 0 R 0 R 0 R 324,000 Ross Kent 2008 R 1,794,000 R 980,408 R 2,469,949 R 2,889,800 R 629,884 2010 R 0 R 0 R 272,987 R 0 North 2009 R 979,000 R 202,000 R 0 R 386,442 R 1,772,458 2011 R 0 R 0 R 0 R 0 2010 R 191,000 R 470,000 R 1,399,549 R 0 R 400,000 2012 R 0 R 0 R 272,987 R 0 2011 R 470,000 R 856,000 R 756,080 R 1,008,000 R 0 2013 R 0 R 0 R 0 R 1,000,000 2012 R 884,000 R 1,029,000 R 77,902 R 1,226,000 R 0 Hennenman SP 2008 R 4,695,226 R 2,016,557 R 798,106 R 3,479,100 R 1,104,000 2013 R 550,000 R 1,109,030 R 0 R 1,330,400 R 630,000 2009 R 1,281,250 R 973,900 R 1,427,122 R 1,940,400 R 770,000 Ross Kent 2008 R 1,319,200 R 0 R 302,400 R 420,000 R 290,000 2010 R 2,129,000 R 1,466,000 R 862,122 R 1,947,000 R 538,351 South 2009 R 0 R 0 R 0 R 0 R 534,210 2011 R 1,988,000 R 3,038,435 R 424,492 R 1,645,500 R 990,000 2010 R 204,000 R 250,000 R 241,271 R 782,300 R 0 2012 R 3,439,000 R 1,135,000 R 850,000 R 4,821,400 R 1,040,000 2011 R 0 R 225,000 R 0 R 265,500 R 0 2013 R 993,000 R 650,000 R 0 R 960,000 R 1,420,000 2012 R 588,500 R 451,500 R 0 R 1,271,000 R 310,000 Hestersrus 2008 R 75,000 R 295,295 R 347,400 R 362,800 R 537,027 2013 R 0 R 790,000 R 0 R 420,000 R 0 2009 R 0 R 0 R 0 R 0 R 217,101 Saaiplaas 2008 R 2,721,000 R 1,519,170 R 651,630 R 1,907,825 R 832,338 2010 R 0 R 180,000 R 389,000 R 0 R 320,000 2009 R 707,410 R 943,850 R 282,736 R 670,400 R 165,585 2011 R 0 R 0 R 0 R 0 R 0 2010 R 685,000 R 1,596,600 R 502,371 R 594,000 R 150,000 2012 R 0 R 565,000 R 0 R 0 R 0 2011 R 1,070,000 R 311,000 R 0 R 1,128,500 R 300,000 2013 R 0 R 0 R 0 R 0 R 0 2012 R 50,000 R 0 R 0 R 303,570 R 0 Jan Cilliers 2008 R 2,431,000 R 2,961,211 R 5,865,651 R 5,431,400 R 390,342 2013 R 210,000 R 292,000 R 480,000 R 2,050,000 R 0 Park 2009 R 2,547,500 R 1,196,200 R 2,226,055 R 2,614,750 R 1,105,000 Sandania 2008 R 493,000 R 250,000 R 1,116,102 R 235,000 R 0 2010 R 3,797,000 R 2,157,000 R 2,770,021 R 5,568,500 R 560,000 2009 R 0 R 346,000 R 109,756 R 502,000 R 179,275 2011 R 3,301,687 R 2,177,500 R 0 R 7,990,500 R 4,512,500 2010 R 245,000 R 657,000 R 0 R 583,500 R 860,000 2012 R 1,838,000 R 4,378,500 R 1,342,971 R 7,444,500 R 2,800,000 2011 R 0 R 172,000 R 0 R 1,274,000 R 0 2013 R 4,299,000 R 6,091,000 R 2,025,700 R 12,618,916 R 2,010,000 2012 R 1,357,500 R 0 R 0 R 690,000 R 0 Jim 2008 R 6,935,000 R 7,508,186 R 10,238,217 R 3,551,450 R 2,278,358 2013 R 0 R 0 R 0 R 555,000 R 0 Fouchepark 2009 R 1,242,000 R 0 R 6,033,654 R 1,375,000 R 837,027 Seemeeu Park 2008 R 0 R 265,000 R 0 R 485,000 R 250,000 2010 R 2,084,200 R 1,925,000 R 8,612,576 R 2,390,000 R 1,431,800 2009 R 839,000 R 261,250 R 853,154 R 0 R 539,515 2011 R 2,632,500 R 6,055,000 R 900,000 R 4,405,000 R 3,510,000 2010 R 569,500 R 980,000 R 387,000 R 1,413,000 R 430,000 2012 R 2,175,000 R 2,295,000 R 7,607,100 R 7,426,000 R 8,600,000 2011 R 888,000 R 1,265,000 R 240,000 R 1,735,000 R 0 2013 R 8,657,500 R 1,380,000 R 10,700,000 R 4,226,500 R 5,830,000 2012 R 350,000 R 120,000 R 998,400 R 3,092,760 R 310,000 Kitty 2008 R 1,388,500 R 300,000 R 307,184 R 0 R 0 2013 R 350,000 R 1,011,200 R 252,000 R 1,941,000 R 925,000 2009 R 120,000 R 200,000 R 0 R 230,000 R 238,990 St Helena 2008 R 8,492,000 R 2,112,192 R 2,681,737 R 6,200,250 R 538,649 2010 R 181,000 R 284,000 R 0 R 730,000 R 0 2009 R 914,500 R 945,308 R 2,531,758 R 350,000 R 1,104,768 2011 R 497,000 R 427,000 R 0 R 470,000 R 0 2010 R 4,585,000 R 215,000 R 2,838,623 R 2,812,900 R 280,000 2012 R 335,000 R 1,441,000 R 0 R 1,446,500 R 120,000 2011 R 3,255,000 R 2,716,000 R 2,360,000 R 7,870,800 R 420,000 2013 R 430,000 R 0 R 118,700 R 2,020,740 R 340,000 2012 R 4,266,700 R 3,530,000 R 880,000 R 8,333,000 R 5,187,500 Kutloanong SP 2008 R 602,600 R 603,285 R 382,758 R 878,200 R 255,105 2013 R 2,859,500 R 2,149,000 R 3,595,700 R 2,196,200 R 2,657,920 2009 R 0 R 683,400 R 185,006 R 210,000 R 613,267 Thabong Ext1 2008 R 0 R 0 R 0 R 270,000 R 245,000 2010 R 89,000 R 440,000 R 0 R 198,000 R 0 2009 R 0 R 194,400 R 0 R 0 R 0 2011 R 0 R 575,000 R 154,280 R 683,000 R 0 2010 R 0 R 0 R 0 R 0 R 0 2012 R 492,000 R 630,000 R 200,000 R 1,136,200 R 0 2011 R 0 R 140,000 R 0 R 150,000 R 0 2013 R 275,000 R 0 R 0 R 523,500 R 280,000 2012 R 0 R 110,000 R 0 R 0 R 0 Lake Veiw 2008 R 358,000 R 273,000 R 883,206 R 518,400 R 0 2013 R 0 R 0 R 0 R 0 R 0 2009 R 0 R 0 R 151,995 R 650,750 R 79,054 Thabong Ext2 2008 R 0 R 0 R 0 R 0 2010 R 0 R 260,000 R 0 R 130,000 R 450,000 2009 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 304,200 R 0 2010 R 0 R 0 R 0 R 0 2012 R 456,000 R 0 R 0 R 383,000 R 0 2011 R 0 R 0 R 0 R 0 2013 R 0 R 635,000 R 0 R 642,000 R 0 2012 R 0 R 0 R 0 R 0 Matjhabeng NU 2008 R 430,000 R 0 R 0 R 900,000 R 0 2013 R 0 R 0 R 0 R 0 2009 R 0 R 0 R 0 R 0 R 0 Thabong Ext3 2008 R 0 R 500,000 R 85,000 R 70,000 R 0 2010 R 0 R 0 R 0 R 0 R 0 2009 R 0 R 173,000 R 0 R 0 R 0 2011 R 0 R 0 R 1,630,000 R 1,882,500 R 0 2010 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 0 2013 R 288,000 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 Meloding SP 2008 R 186,000 R 436,409 R 0 R 387,800 R 227,850 2013 R 0 R 0 R 0 R 0 R 0 2009 R 81,000 R 214,800 R 0 R 66,500 R 0 Thabong Ext4 2008 R 0 R 1,186,505 R 352,098 R 240,000 R 0 2010 R 0 R 0 R 0 R 0 R 0 2009 R 43,300 R 190,000 R 0 R 71,250 R 283,289 2011 R 140,000 R 215,000 R 0 R 555,000 R 350,000 2010 R 0 R 420,000 R 0 R 0 R 0 2012 R 80,000 R 160,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 200,000 R 190,000 2013 R 162,000 R 435,642 R 0 R 0 R 0 2012 R 225,000 R 0 R 0 R 435,000 R 0 Merriespruit 2008 R 2,421,050 R 322,222 R 2,416,582 R 2,184,700 R 113,700 2013 R 285,000 R 0 R 410,000 R 0 R 0 2009 R 505,000 R 190,000 R 271,905 R 420,000 R 833,995 Thabong Ext5 2008 R 0 R 773,339 R 960,290 R 1,073,000 R 944,232 2010 R 800,000 R 350,000 R 0 R 2,289,890 R 750,000 2009 R 0 R 520,800 R 676,527 R 878,000 R 332,573 2011 R 390,397 R 335,000 R 0 R 731,600 R 1,190,000 2010 R 0 R 230,000 R 0 R 1,181,700 R 0 2012 R 1,307,350 R 652,000 R 505,700 R 2,348,000 R 190,000 2011 R 360,000 R 1,520,000 R 0 R 1,891,400 R 0 2013 R 275,700 R 1,312,500 R 0 R 543,000 R 430,000 2012 R 297,000 R 849,000 R 178,040 R 646,000 R 350,000 Merriespruit 2008 R 0 R 0 R 0 R 0 R 0 2013 R 280,000 R 1,269,200 R 400,000 R 224,000 R 0 Gold Mine 2009 R 0 R 0 R 0 R 0 R 0 Thabong Ext6 2008 R 0 R 1,467,553 R 170,718 R 1,046,520 R 112,519 2010 R 0 R 0 R 0 R 0 R 0 2009 R 0 R 0 R 515,060 R 215,000 R 169,469 2011 R 0 R 0 R 0 R 0 R 0 2010 R 165,000 R 2,125,000 R 240,999 R 480,000 R 218,272 2012 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 300,000 R 144,000 R 1,132,000 R 0 2013 R 0 R 0 R 0 R 0 R 0 2012 R 242,250 R 400,000 R 0 R 1,176,000 R 0 Mimosa Park 2008 R 0 R 450,000 R 0 R 936,400 R 74,000 2013 R 0 R 0 R 0 R 949,000 R 0 2009 R 150,000 R 0 R 372,244 R 0 R 0 Thabong Ext7 2008 R 0 R 159,720 R 0 R 0 R 511,695 2010 R 419,000 R 0 R 0 R 0 R 430,000 2009 R 0 R 220,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 300,000 2010 R 0 R 470,000 R 0 R 0 R 0 2012 R 380,000 R 0 R 0 R 426,400 R 460,000 2011 R 0 R 0 R 0 R 230,000 R 0 2013 R 0 R 0 R 0 R 396,000 R 0 2012 R 0 R 0 R 0 R 0 R 0 Naudeville 2008 R 3,215,000 R 1,893,301 R 3,993,236 R 5,466,600 R 2,269,965 2013 R 0 R 0 R 0 R 0 R 0 2009 R 2,028,500 R 560,000 R 4,052,615 R 2,036,000 R 960,160 Thabong Ext8 2008 R 305,000 R 1,186,406 R 820,530 R 344,800 R 0 2010 R 3,370,000 R 844,300 R 1,336,095 R 3,191,250 R 1,170,000 2009 R 0 R 322,519 R 0 R 85,500 R 135,195 2011 R 2,633,000 R 1,884,250 R 1,707,569 R 7,309,891 R 1,800,000 2010 R 270,000 R 210,000 R 100,000 R 220,000 R 0 2012 R 3,455,200 R 4,090,000 R 1,950,400 R 3,403,000 R 1,600,000 2011 R 325,000 R 534,500 R 0 R 0 R 0 2013 R 4,564,000 R 3,408,750 R 1,025,000 R 8,633,100 R 3,880,000 2012 R 85,000 R 168,000 R 0 R 680,000 R 0 Ou Dorp 2008 R 3,833,700 R 2,263,200 R 2,809,067 R 3,128,728 R 960,000 2013 R 240,000 R 130,000 R 0 R 477,800 R 0 2009 R 924,000 R 849,900 R 550,787 R 650,000 R 1,323,679 Thabong Ext9 2008 R 241,500 R 441,622 R 148,643 R 326,400 R 90,000 2010 R 1,192,000 R 380,000 R 906,037 R 1,260,300 R 990,000 2009 R 0 R 0 R 172,823 R 65,000 R 0 2011 R 935,000 R 1,021,737 R 1,189,911 R 1,230,000 R 1,140,000 2010 R 0 R 797,500 R 118,940 R 0 R 0 2012 R 1,308,330 R 0 R 0 R 2,699,000 R 0 2011 R 0 R 365,000 R 0 R 345,000 R 0 2013 R 885,200 R 1,005,000 R 0 R 1,316,700 R 1,580,000 2012 R 140,000 R 0 R 150,000 R 326,000 R 0 Phathakahle 2008 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 140,700 R 0 R 0 SP 2009 R 0 R 127,200 R 0 R 343,629 Thabong Ext10 2008 R 0 R 388,466 R 109,630 R 595,000 R 88,315 2010 R 0 R 0 R 0 R 0 2009 R 0 R 173,362 R 0 R 0 R 201,231 2011 R 0 R 0 R 0 R 0 2010 R 0 R 330,000 R 0 R 135,000 R 0 2012 R 0 R 0 R 0 R 0 2011 R 0 R 165,000 R 0 R 166,000 R 0 2013 R 0 R 0 R 0 R 0 2012 R 0 R 163,100 R 109,700 R 190,000 R 0 Philippi 2008 R 1,616,380 R 477,000 R 345,600 R 656,000 R 369,394 2013 R 210,000 R 952,400 R 0 R 180,000 R 0 2009 R 2,296,000 R 0 R 1,212,222 R 0 R 400,000 Thabong Ext11 2008 R 170,000 2010 R 255,000 R 161,000 R 0 R 0 R 0 2009 R 0 2011 R 293,000 R 1,417,250 R 364,013 R 1,809,000 R 0 2010 R 0 2012 R 793,500 R 517,500 R 0 R 291,200 R 100,000 2011 R 0 2013 R 728,000 R 1,015,000 R 0 R 620,000 R 0 2012 R 0 Phomolong SP 2008 R 58,700 R 0 R 0 R 434,800 R 0 2013 R 0 2009 R 0 R 192,000 R 0 R 0 R 0 Thabong Ext13 2008 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2009 R 0 R 0 2011 R 0 R 308,360 R 0 R 0 R 0 2010 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 2012 R 0 R 340,000 Reitzpark 2008 R 1,601,000 R 1,777,061 R 1,744,061 R 1,412,000 R 740,000 2013 R 0 R 0 2009 R 110,500 R 510,000 R 487,000 R 680,300 R 1,851,471 Thabong Ext14 2008 R 0 R 0 2010 R 535,000 R 632,000 R 160,000 R 730,500 R 615,681 2009 R 0 R 0 2011 R 785,000 R 955,000 R 402,736 R 1,765,900 R 450,000 2010 R 110,000 R 0 2012 R 629,650 R 1,864,000 R 0 R 1,423,000 R 0 2011 R 0 R 0 2013 R 1,590,000 R 1,172,500 R 0 R 1,515,100 R 0 2012 R 0 R 0 Rheederpark 2008 R 1,037,644 R 290,188 R 1,813,473 R 275,000 R 200,727 2013 R 0 R 0 2009 R 1,030,750 R 1,117,807 R 222,504 R 548,000 R 778,300 Thabong Ext15 2008 R 150,000 R 144,000 R 0 R 0 R 0 2010 R 680,000 R 150,000 R 120,753 R 393,000 R 250,000 2009 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 180,000 R 0 R 551,500 R 370,000 2010 R 0 R 0 R 0 R 0 R 0 2012 R 41,601 R 0 R 0 R 541,400 R 0 2011 R 0 R 120,000 R 0 R 190,000 R 0 2013 R 99,000 R 515,000 R 0 R 476,800 R 60,000 2012 R 0 R 230,000 R 0 R 0 R 0 Riebeeckstad 2008 R 21,020,203 R 8,079,132 R 12,916,855 R 23,663,130 R 4,506,793 2013 R 0 R 0 R 0 R 0 R 0 SP 2009 R 7,737,750 R 6,628,870 R 7,153,423 R 6,277,450 R 6,267,746 Thabong SP 2008 R 0 R 0 R 200,870 R 1,455,000 R 0 2010 R 10,446,240 R 7,213,500 R 8,566,692 R 16,194,900 R 3,280,000 2009 R 0 R 0 R 0 R 45,600 R 96,849 2011 R 8,580,600 R 6,537,000 R 5,492,597 R 20,993,200 R 6,070,000 2010 R 0 R 0 R 0 R 0 R 0 2012 R 9,385,500 R 10,613,500 R 3,831,100 R 25,923,500 R 5,095,000 2011 R 0 R 0 R 0 R 210,000 R 0 2013 R 8,332,800 R 11,000,700 R 2,196,200 R 21,810,700 R 8,217,000 2012 R 0 R 0 R 0 R 0 R 0 Ross Kent 2008 R 1,794,000 R 980,408 R 2,469,949 R 2,889,800 R 629,884 2013 R 198,000 R 0 R 0 R 0 R 0 North 2009 R 979,000 R 202,000 R 0 R 386,442 R 1,772,458 Thabong SP2 2008 R 0 R 0 2010 R 191,000 R 470,000 R 1,399,549 R 0 R 400,000 2009 R 0 R 0 2011 R 470,000 R 856,000 R 756,080 R 1,008,000 R 0 2010 R 0 R 0 2012 R 884,000 R 1,029,000 R 77,902 R 1,226,000 R 0 2011 R 0 R 0 2013 R 550,000 R 1,109,030 R 0 R 1,330,400 R 630,000 2012 R 0 R 0 Ross Kent 2008 R 1,319,200 R 0 R 302,400 R 420,000 R 290,000 2013 R 160,000 R 0 South 2009 R 0 R 0 R 0 R 0 R 534,210 Thelma 2008 R 0 R 113,500 R 340,899 R 1,243,309 R 365,000 2010 R 204,000 R 250,000 R 241,271 R 782,300 R 0 2009 R 80,000 R 322,800 R 290,782 R 585,000 R 405,638 2011 R 0 R 225,000 R 0 R 265,500 R 0 2010 R 182,000 R 135,000 R 329,168 R 140,000 R 0 2012 R 588,500 R 451,500 R 0 R 1,271,000 R 310,000 2011 R 0 R 380,000 R 340,000 R 140,000 R 0 2013 R 0 R 790,000 R 0 R 420,000 R 0 2012 R 360,000 R 200,000 R 0 R 280,000 R 0 Saaiplaas 2008 R 2,721,000 R 1,519,170 R 651,630 R 1,907,825 R 832,338 2013 R 500,000 R 0 R 315,000 R 150,000 R 0 2009 R 707,410 R 943,850 R 282,736 R 670,400 R 165,585 Ventersburg 2008 R 1,721,000 R 505,000 R 412,542 R 965,000 R 0 2010 R 685,000 R 1,596,600 R 502,371 R 594,000 R 150,000 SP 2009 R 309,500 R 550,000 R 312,907 R 142,500 R 175,000 2011 R 1,070,000 R 311,000 R 0 R 1,128,500 R 300,000 2010 R 315,000 R 553,000 R 0 R 1,080,000 R 240,000 2012 R 50,000 R 0 R 0 R 303,570 R 0 2011 R 0 R 268,000 R 0 R 120,000 R 0 2013 R 210,000 R 292,000 R 480,000 R 2,050,000 R 0 2012 R 365,000 R 0 R 320,700 R 870,000 R 450,000 Sandania 2008 R 493,000 R 250,000 R 1,116,102 R 235,000 R 0 2013 R 250,000 R 69,000 R 0 R 315,000 R 0 2009 R 0 R 346,000 R 109,756 R 502,000 R 179,275 Virginia SP 2008 R 3,776,500 R 618,445 R 2,963,013 R 2,837,909 R 2,384,306 2010 R 245,000 R 657,000 R 0 R 583,500 R 860,000 2009 R 2,562,000 R 546,190 R 746,061 R 2,390,282 R 2,621,578 2011 R 0 R 172,000 R 0 R 1,274,000 R 0 2010 R 3,443,000 R 1,731,252 R 714,248 R 3,378,400 R 1,394,593 2012 R 1,357,500 R 0 R 0 R 690,000 R 0 2011 R 1,567,000 R 2,322,300 R 459,110 R 3,995,396 R 450,000 2013 R 0 R 0 R 0 R 555,000 R 0 2012 R 3,557,440 R 1,143,250 R 1,114,700 R 3,610,300 R 480,000 Seemeeu Park 2008 R 0 R 265,000 R 0 R 485,000 R 250,000 2013 R 4,799,600 R 1,823,000 R 1,234,838 R 4,388,500 R 970,000 2009 R 839,000 R 261,250 R 853,154 R 0 R 539,515 Voorspoed 2008 R 0 R 0 R 280,000 R 550,000 R 0 2010 R 569,500 R 980,000 R 387,000 R 1,413,000 R 430,000 2009 R 0 R 0 R 0 R 0 R 450,000 2011 R 888,000 R 1,265,000 R 240,000 R 1,735,000 R 0 2010 R 0 R 0 R 0 R 0 R 0 2012 R 350,000 R 120,000 R 998,400 R 3,092,760 R 310,000 2011 R 0 R 200,000 R 0 R 0 R 0 2013 R 350,000 R 1,011,200 R 252,000 R 1,941,000 R 925,000 2012 R 0 R 0 R 300,000 R 0 R 0 St Helena 2008 R 8,492,000 R 2,112,192 R 2,681,737 R 6,200,250 R 538,649 2013 R 0 R 0 R 0 R 0 R 0 2009 R 914,500 R 945,308 R 2,531,758 R 350,000 R 1,104,768 Welkom 2008 R 465,000 R 1,870,000 R 969,418 R 39,051,800 R 0 2010 R 4,585,000 R 215,000 R 2,838,623 R 2,812,900 R 280,000 Central 2009 R 990,000 R 735,000 R 267,198 R 3,729,000 R 0 2011 R 3,255,000 R 2,716,000 R 2,360,000 R 7,870,800 R 420,000 2010 R 255,400 R 0 R 526,115 R 550,000 R 1,696,000 2012 R 4,266,700 R 3,530,000 R 880,000 R 8,333,000 R 5,187,500 2011 R 1,050,000 R 760,000 R 0 R 1,087,200 R 0 2013 R 2,859,500 R 2,149,000 R 3,595,700 R 2,196,200 R 2,657,920 2012 R 350,000 R 0 R 358,973 R 0 R 280,000 Thabong Ext1 2008 R 0 R 0 R 0 R 270,000 R 245,000 2013 R 555,000 R 0 R 0 R 840,000 R 0 2009 R 0 R 194,400 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on 2011 R 0 R 140,000 R 0 R 150,000 R 0 the deeds registry. 2012 R 0 R 110,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Banks ABSA Thabong Ext2 2008 R 0 R 0 R 0 R 0 FNB 2009 R 0 R 0 R 0 R 0 Nedbank 2010 R 0 R 0 R 0 R 0 Standard Bank 2011 R 0 R 0 R 0 R 0 Other Lenders 2012 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 Thabong Ext3 2008 R 0 R 500,000 R 85,000 R 70,000 R 0 2009 R 0 R 173,000 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 0 R 0 35 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 TheThabong Housing Ext4 2008 DevelopmentR 0 R Agency 1,186,505 R| 352,098 MatjhabengR 240,000 MiningR 0 Town Housing Market Report 2009 R 43,300 R 190,000 R 0 R 71,250 R 283,289 2010 R 0 R 420,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 200,000 R 190,000 2012 R 225,000 R 0 R 0 R 435,000 R 0 2013 R 285,000 R 0 R 410,000 R 0 R 0 Thabong Ext5 2008 R 0 R 773,339 R 960,290 R 1,073,000 R 944,232 2009 R 0 R 520,800 R 676,527 R 878,000 R 332,573 2010 R 0 R 230,000 R 0 R 1,181,700 R 0 2011 R 360,000 R 1,520,000 R 0 R 1,891,400 R 0 2012 R 297,000 R 849,000 R 178,040 R 646,000 R 350,000 2013 R 280,000 R 1,269,200 R 400,000 R 224,000 R 0 Thabong Ext6 2008 R 0 R 1,467,553 R 170,718 R 1,046,520 R 112,519 2009 R 0 R 0 R 515,060 R 215,000 R 169,469 2010 R 165,000 R 2,125,000 R 240,999 R 480,000 R 218,272 2011 R 0 R 300,000 R 144,000 R 1,132,000 R 0 2012 R 242,250 R 400,000 R 0 R 1,176,000 R 0 2013 R 0 R 0 R 0 R 949,000 R 0 Thabong Ext7 2008 R 0 R 159,720 R 0 R 0 R 511,695 2009 R 0 R 220,000 R 0 R 0 R 0 2010 R 0 R 470,000 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 230,000 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong Ext8 2008 R 305,000 R 1,186,406 R 820,530 R 344,800 R 0 2009 R 0 R 322,519 R 0 R 85,500 R 135,195 2010 R 270,000 R 210,000 R 100,000 R 220,000 R 0 2011 R 325,000 R 534,500 R 0 R 0 R 0 2012 R 85,000 R 168,000 R 0 R 680,000 R 0 2013 R 240,000 R 130,000 R 0 R 477,800 R 0 Thabong Ext9 2008 R 241,500 R 441,622 R 148,643 R 326,400 R 90,000 2009 R 0 R 0 R 172,823 R 65,000 R 0 2010 R 0 R 797,500 R 118,940 R 0 R 0 2011 R 0 R 365,000 R 0 R 345,000 R 0 2012 R 140,000 R 0 R 150,000 R 326,000 R 0 2013 R 0 R 0 R 140,700 R 0 R 0 Thabong Ext10 2008 R 0 R 388,466 R 109,630 R 595,000 R 88,315 2009 R 0 R 173,362 R 0 R 0 R 201,231 2010 R 0 R 330,000 R 0 R 135,000 R 0 2011 R 0 R 165,000 R 0 R 166,000 R 0 2012 R 0 R 163,100 R 109,700 R 190,000 R 0 2013 R 210,000 R 952,400 R 0 R 180,000 R 0 Thabong Ext11 2008 R 170,000 2009 R 0 2010 R 0 2011 R 0 2012 R 0 2013 R 0 Thabong Ext13 2008 R 0 R 0 2009 R 0 R 0 2010 R 0 R 0 2011 R 0 R 0 2012 R 0 R 340,000 2013 R 0 R 0 Thabong Ext14 2008 R 0 R 0 2009 R 0 R 0 2010 R 110,000 R 0 2011 R 0 R 0 2012 R 0 R 0 2013 R 0 R 0 Thabong Ext15 2008 R 150,000 R 144,000 R 0 R 0 R 0 2009 R 0 R 0 R 0 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 120,000 R 0 R 190,000 R 0 2012 R 0 R 230,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Thabong SP 2008 R 0 R 0 R 200,870 R 1,455,000 R 0 2009 R 0 R 0 R 0 R 45,600 R 96,849 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 210,000 R 0 2012 R 0 R 0 R 0 R 0 R 0 2013 R 198,000 R 0 R 0 R 0 R 0 Thabong SP2 2008 R 0 R 0 2009 R 0 R 0 2010 R 0 R 0 2011 R 0 R 0 2012 R 0 R 0 2013 R 160,000 R 0 Thelma 2008 R 0 R 113,500 R 340,899 R 1,243,309 R 365,000 2009 R 80,000 R 322,800 R 290,782 R 585,000 R 405,638 2010 R 182,000 R 135,000 R 329,168 R 140,000 R 0 2011 R 0 R 380,000 R 340,000 R 140,000 R 0 2012 R 360,000 R 200,000 R 0 R 280,000 R 0 2013 R 500,000 R 0 R 315,000 R 150,000 R 0 Ventersburg 2008 R 1,721,000 R 505,000 R 412,542 R 965,000 R 0 SP 2009 R 309,500 R 550,000 R 312,907 R 142,500 R 175,000 2010 R 315,000 R 553,000 R 0 R 1,080,000 R 240,000 2011 R 0 R 268,000 R 0 R 120,000 R 0 2012 R 365,000 R 0 R 320,700 R 870,000 R 450,000 2013 R 250,000 R 69,000 R 0 R 315,000 R 0 Virginia SP 2008 R 3,776,500 R 618,445 R 2,963,013 R 2,837,909 R 2,384,306 2009 R 2,562,000 R 546,190 R 746,061 R 2,390,282 R 2,621,578 2010 R 3,443,000 R 1,731,252 R 714,248 R 3,378,400 R 1,394,593 2011 R 1,567,000 R 2,322,300 R 459,110 R 3,995,396 R 450,000 2012 R 3,557,440 R 1,143,250 R 1,114,700 R 3,610,300 R 480,000 2013 R 4,799,600 R 1,823,000 R 1,234,838 R 4,388,500 R 970,000 Voorspoed 2008 R 0 R 0 R 280,000 R 550,000 R 0 2009 R 0 R 0 R 0 R 0 R 450,000 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 200,000 R 0 R 0 R 0 2012 R 0 R 0 R 300,000 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Welkom 2008 R 465,000 R 1,870,000 R 969,418 R 39,051,800 R 0 Central 2009 R 990,000 R 735,000 R 267,198 R 3,729,000 R 0 2010 R 255,400 R 0 R 526,115 R 550,000 R 1,696,000 2011 R 1,050,000 R 760,000 R 0 R 1,087,200 R 0 2012 R 350,000 R 0 R 358,973 R 0 R 280,000 2013 R 555,000 R 0 R 0 R 840,000 R 0

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Banks ABSA FNB Nedbank Standard Bank Other Lenders Market Share by Lender: New Loans 2013 11.6 Market Share Matjhabeng, all new loans made, by suburb by lender, 2013 The understanding of market share at Allanridge SP Phathakahle SP the local level is key to understanding the potential for end-user finance, where gaps might exist and how to make the case for more lending. It is interesting Kutloanong SP Ross Kent North that there has been consistent lending Ross Kent South activity throughout all the subplaces in Matjhabeng between 2008 and

Riebeeckstad SP 2013. Lending is scattered throughout Rheederpark Thabong Ext15 Flamingo Park the municipality, however, the largest Thabong Ext11 Jim Fouchepark Thabong Ext13 volume of lending is visible in the Hennenman SP Bedelia Voorspoed Jan Cilliers Park Bronville central part of Matjhabeng where the Matjhabeng NU Phomolong SP highest concentration of residential properties are located.

Saaiplaas

Harmony Gold Mine Ventersburg SP Comparing lending over time and

Virginia SP by suburb also shows which lenders Merriespruit Gold Mine perceive value or risk. Meloding SP

Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry.

New Residential Bonds Lenders 0 ABSA 50 FNB 100 Nedbank 150 Standard Bank Other Lenders

Market Share by Lender: All Residential Bonds Matjhabeng, all loans, by suburb by lender, through 2013 The areas with no dots have no Allanridge SP Phathakahle SP residential properties on the deeds registry – they are farms or open space, mines or power plants, or informal settlements.

Ross Kent North Ross Kent South

Riebeeckstad SP Thabong Ext15 Flamingo Park Thabong Ext11 Jim Fouchepark Thabong Ext13 Welkom Central Hennenman SP Jan Cilliers Park Bronville Matjhabeng NU Phomolong SP

Saaiplaas

Harmony Gold Mine Ventersburg SP

Virginia SP

Merriespruit Gold Mine Meloding SP

Source: South African Deeds Registry via Lightstone (Pty) Ltd. All indicators reflect formal market data as reflected on the deeds registry.

Total Residential Bonds Lenders 0 ABSA 1000 FNB 2000 Nedbank 3000 Standard Bank 4000 Other Lenders ≥ 5000

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 12. Leverage

12.1 Key Findings

The presence of older Government-sponsored units within the municipality represent an important opportunity to leverage that investment in affordable housing in the years ahead, as owners seek to sell and move up the housing continuum if opportunities are positioned properly. About 26% of all registered properties in Matjhabeng were sponsored by the Government. The value of these homes, if sold in the private market, can be applied towards the cost of a new home.

This situation can be used to drive developers to build more gap housing and financiers to finance RDP acquisition loans.

12.2 Policy Implications

Policies should focus on enticing developers to build more housing in the gap market and encourage lending to the RDP and other lower-cost home markets. Sites could be prioritised which connect these RDP neighbourhoods to other more active housing markets to encourage mixed income development.

To encourage an increase in the supply of gap housing, governments can unlock sites, supply infrastructure or grants, or hook-up fee discounts. Governments can also reduce the cost of construction finance, which can all be passed down to the buyers in the form of lower sales prices.

Governments can create programmes using funds pooled from a range of Government and private sector partners, that provide bonds for small properties and offset risks through loan guarantees, loan loss reserves and interest rate discounts. Funds can also be organise to implement homebuyer counselling, debt consolidation and moderate rehab costs of the existing home to ensure loan performance of the portfolio.

These programmes would work together in the mining towns to create better social, housing and economic integration. In Matjhabeng, this might be those areas between Flamingo Park and Thabong Ext. 7; and those higher priced more active markets; and Havengaville.

12.3 Quick Definitions:

Leverage: the ability to use the percentage of the property that has been paid off as a down-payment for another property

Equity: the value of the residential property less the outstanding balance of the bond. This represents the value of ownership built up in a property and is often used as the down-payment for the owner’s next house purchased up the housing ladder.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Average Equity to Average Sales Price 12.4 Equity Fills the Gap Matjhabeng, 2013 The value of average home equity related to the average sales price R 110K Allanridge SP R 320K Equity is the value of one’s home less R 377K Bedelia R 317K the amount owed to the lender. The R 150K Bronville R 149K R 397K chart shows the average equity per Dagbreek R 297K R 454K suburb (the green bar) compared to Doorn R 387K

Flamingo Park R 425K R 321K the average sales price per suburb.

Harmony R 288K R 344K This helps to show what portion of

Harmony Gold Mine R 90K the sales price might be paid for by Havengaville R 270K R 1 500K homeowners’ equity. Hennenman SP R 354K R 414K

R 213K Hestersrus R 349K If a homeowner in Thabong Ext Jan Cilliers Park R 667K R 544K 7 wished to purchase a home in Jim Fouchepark R 1 086K R 709K

Kitty R 218K R 223K Flamingo Park, they could sell their

Kutloanong SP R 94K R 140K home and apply it towards the cost of Lake Veiw R 307K R 319K the new home, reducing the amount Matjhabeng NU R 345K R 283K they would have to borrow. Instead Meloding SP R 141K R 129K of borrowing over R425 000 (the R 248K Merriespruit R 359K average sales price in Flamingo Park), Merriespruit Gold Mi.. R 245K they would only need about R132 000 Mimosa Park R 325K R 312K

Naudeville R 312K R 369K (the orange bar in Flamingo Park minus

Ou Dorp R 232K R 346K the green bar in Thabong Ext 7). Thus Phathakahle SP R 55K R 66K equity makes homeownership in higher Philippi R 225K R 349K priced neighbourhoods affordable, Phomolong SP R 142K expanding housing options. Equity R 272K Reitzpark R 285K closes the housing gap for less Rheederpark R 168K R 217K

Riebeeckstad SP R 428K R 397K affluent homeowners because their

Ross Kent North R 232K R 277K properties are less likely to have

Ross Kent South R 211K R 297K a bond and those markets have Saaiplaas R 133K R 225K experienced more appreciation of Sandania R 295K R 293K value. It is important to consider this Seemeeu Park R 314K R 307K value in addition to a homeowner’s R 534K St Helena R 408K income. Thabong Ext1 R 33K R 166K

Thabong Ext2 R 18K R 187K

Thabong Ext3 R 200K Equity invested by homeowners also

Thabong Ext4 R 149K R 190K reduces risk by increasing their Thabong Ext5 R 221K R 308K financial stake in their home. This Thabong Ext6 R 189K R 269K is the same way upper-income families Thabong Ext7 R 293K move up the housing continuum and is Thabong Ext8 R 138K R 157K now available at scale for lower-income Thabong Ext9 R 89K R 175K

Thabong Ext10 R 171K R 144K families as well, thanks to the massive

Thabong Ext11 R 100K R 186K Government investment in homes Thabong Ext13 R 25K R 158K for the poor. This requires financing Thabong Ext14 R 43K R 136K available for the lower-income buyers Thabong Ext15 R 182K something to explore with lender R 30K Thabong SP R 153K partners. Thabong SP2 R 45K R 73K

Thelma R 231K R 355K

Ventersburg SP R 165K R 261K While averages in such diverse

Virginia SP R 297K R 432K housing markets are hard to consider Voorspoed R 700K R 660K meaningfully, the picture does indicate Welkom Central R 336K R 281K that purchasing power increases – and R 0K R 200K R 400K R 600K R 800K R 1 000K R 1 200K R 1 400K R 1 600K Avg Sales Price gaps close – when equity is taken into Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

Measure Names consideration. Avg Sales Price Avg Value of Residential Equity

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 5 Year Equity Growth 12.5 Accessing equity Closes the Matjhabeng, 2013 Housing Gap and Can Rates of equity growth, since 2007 to 2013 Drive Demand Allanridge SP Understanding the difference in equity Phathakahle SP growth rates on a map allows a better understanding of which property markets Ross Kent North can be leveraged to support more new Philippi Kutloanong SP Thelma Hestersrus development. Many higher-priced areas Ross Kent South have experienced modest equity growth

Rheederpark (grey areas) – or loss (red areas) – over Riebeeckstad SP the past five years, likely due to increasing Thabong SP2 Flamingo Park Bedelia sales prices (rather than amortisation as ReitzpTahrakbong Ext5 Thabong SP3 Lake Veiw Voorspoed new buyers tend to have less equity and Naudeville Bronville Matjhabeng NU Whites SP this market has been very active recently). Phomolong SP The greatest equity growth over five years Saaiplaas Ventersburg SP (green areas and green lines) has been Harmony Gold Mine Harmony in less developed areas with fewer sales Virginia Gold Mine Tswelangpele SP Merriespruit Virginia SP and values have accrued to the existing Kitty Merriespruit Gold Mine homeowners.

Meloding SP

Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators re- Homes worth less than R500 000 typically flect formal market data as reflected on the deeds registry. have fewer loans, a faster-growing value Total Residential properties Avg value of Equity 0 and an initial housing cost that was low 1 000 -4,00% 70,00% 2 000 or free (thanks to Government investment 3 000 4 000 in housing). Homebuyers can reduce the ≥ 5 000 amount they have to borrow through savings or the equity in their home, if they have an existing house that they can sell. This lowers their monthly payment Growth in Equity or increases the price they can afford. Matjhabeng, 2008- 2013 Leverage is the practice of using this equity The change in the value of average home equity from to increase their housing affordability. This 2008 indicator thus becomes very useful for 42% meeting – and closing – the housing gap. 40%

t i 39% u Constraints to using leverage in affordable

housing markets include the availability

i 30% of credit for potential buyers to pay the t 30% n full value of the house, maximising the

d i 28% equity available to the homeowner, the

s e 22% availability of homes up the housing ladder

f to buy and, in the case of RDP owners, o 20%

e 20% the ability to sell Government subsidised

a 14% stock (which comes with an eight-year

V resale restriction). Other constraints

i 13%

e 10% include household indebtedness and the

n willingness of existing homeowners to sell a 4% h their most important asset.

C 0% 3% 0% 0% However, policies that address these constraints can expand the housing ladder 2008 2009 2010 2011 2012 2013 in remarkably quick and cost-effective Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. ways. Closing cost assistance, interest rate write-downs and loan loss funds all Change in Equity cost a fraction of new construction and Affordable properties (under R500 000) put the opportunity – and choice – in the All residential properties hands of the homeowner, rather than the Government.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 13. Affordability Profile

13.1 Key Findings

Matjhabeng’s affordability ratio is 1.46 and is below the national average of 3 and the mining town average of 2.8. This means that it takes 1.46 times the average monthly income to afford the average house in Matjhabeng. Matjhabeng’s ratio is the second lowest of the 22 mining towns – although 6 of the 58 subplaces do not have sales prices to determine affordability ratios. Despite an average monthly income, there remain large disparities among incomes and affordable housing access in certain areas within the municipality.

In some areas, sales prices are very low, probably the result of lack of credit access forcing sellers to sell for whatever cash might be offered regardless of how much the house may be worth.

13.2 Policy Implications

Affordability constraints, due to below-average incomes, can be addressed through housing strategies and solutions which propose creative financing tools and techniques that can reduce financial barriers (such as down payments, interest rates and principal requirements) as well as unlocking equity rather than simply trying to push costs down.

Lowering the cost of financing can also increase the amount that can be borrowed, which can increase sales prices and the amount of equity a home seller will be able to access to buy their next home.

Lack of adequate affordable supply in areas with very low incomes can often be quickly addressed through the carefully considered provision of well-located, quality rental housing.

13.3 Quick Definitions:

Affordability: affordability is generally defined as the ability to allocate less than 25-30% of a household’s monthly income towards housing costs. While upper-income families’ incomes enable them to cover the cost of producing and selling housing units and thus provides many housing options, lower-income families struggle because their income often does not adequately cover the cost of producing and selling a housing unit. Supply is limited and others must collaborate to provide decent affordable housing.

Affordability Ratio: the purchasing power of local incomes to afford local sales prices. The local average sales price is divided by the target house price. This shows the relationship between local incomes and local sales prices – a larger number means that local sales prices are harder for local income households to afford, implying a mismatch between local housing options and residents.

Housing Gap: the shortfall between the target house price a household can afford and the sales price (or construction cost) of a house. This can be calculated by the difference between the target affordable price and the cost or price of the house.

Target House Price: the sales price affordable to local households, which is calculated using the average area median income available for housing (25% of monthly income) using standard underwriting criteria (typically 20 year amortisation at 11%, with 5% down).

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Mind the Gap Table Matjhabeng, 2013 Affordability indicators per suburb

Avg Monthly Target house Average Affordable Affordability Subplace Name Income price Sales Price Price Gap Ratio

Allanridge SP R 13K R 352K R 110K R 243K 0.3

Bedelia R 18K R 480K R 377K R 103K 0.8 13.4 Affordability Bronville R 5K R 129K R 150K R -21K 1.2 Dagbreek R 17K R 462K R 397K R 65K 0.9

Doorn R 16K R 427K R 454K R -27K 1.1

Actual affordability relies on the understanding of local householdFlamingo P aincomerk to determineR 21K R 567whatK isR 425 reasonablyK R 142K afforded0.8 by existing residents, how much of a gap exists and what is requiredHarmon yto ensure more Rrealistic 17K R 453 affordability.K R 288K R 166TheK Affordability0.6 Ratio is determined by dividing the purchase price affordableHa rmtoon y theGold M inaveragee householdR 13K R 332 income,K by the average sales price. Nationally, it takes three times the average incomeHave tongav affordille the averageR 6K salesR 159K price;R 1,500K withinR -1,341K the9 .4mining towns, this ratio averages at 2.8. The affordability ratio forHe nnMatjhabengenman SP is 1.46,R 12K the Rsecond 324K R lowest354K R of -29K the 221.1 mining Hestersrus R 7K R 188K R 213K R -24K 1.1 towns – although 6 of the 58 subplaces do not have sales prices to determine affordability ratios. This doesn’t mean Jan Cilliers Park R 19K R 492K R 667K R -175K 1.4 that families are paying that, it means that most homes on theJim deeds Fouchepar kregistry are Rnot 36K affordableR 949K R 1 ,086toK theR majority-137K of1.1 South

Africans. However this indicator provides an important benchmark,Kitty by providing Ra 13 KsenseR 353 ofK affordabilityR 218K R 135 Klevels and0.6 how well local markets might be meeting the needs of local residents.Kutloanong SP R 4K R 100K R 94K R 5K 0.9 Lake Veiw R 22K R 584K R 307K R 277K 0.5 In Matjhabeng, there appear to be gaps in affordability inMatj hsomeabeng NU markets, asR 7 KshownR 176K by theR 345K negativeR -169K price2.0 gap, R 83K R -58K ie. the amount by which local sales prices are higher thanMel odwhat’sing SP affordableR 3 Kto local residents.R 141K The Matjhabeng1.7 Merriespruit R 18K R 486K R 248K R 238K 0.5

NU represents all the non-urban areas surrounding the town,Me rrsoiesp ruit’sit Go ldnot Mine possibleR to0K pinpointR 0K why or where prices and incomes are so unbalanced. Mimosa Park R 17K R 441K R 325K R 116K 0.7

Mmamahabane SP R 2K R 56K The introduction of new products or strategies is more likely toNa udbeevill esustainable if theyR 17K areR 439responsiveK R 312K to Rcurrent 126K residents.0.7 The target home price in column 2 can also be compared to estimatedOu Dorp potential per-unitR 12K R construction 313K R 232K costsR 81K to determine0.7 the amount of subsidy which may be required to build and sellPha ththeakahle unitsSP to local residents.R 4K R 100K R 55K R 45K 0.6 Philippi R 20K R 517K R 225K R 293K 0.4

Phomolong SP R 3K R 75K

President Brand Gold Mine R 8K R 200K

Reitzpark R 11K R 292K R 272K R 20K 0.9

Rheederpark R 5K R 133K R 168K R -35K 1.3

Riebeeckstad SP R 25K R 651K R 428K R 223K 0.7

Ross Kent North R 12K R 305K R 232K R 72K 0.8

Ross Kent South R 13K R 339K R 211K R 127K 0.6 Mind the Gap Table Saaiplaas R 8K R 223K R 133K R 90K 0.6 Matjhabeng, 2013 Sandania R 8K R 219K R 295K R -76K 1.3 Affordability indicators per suburb Seemeeu Park R 22K R 578K R 314K R 263K 0.5 Avg Monthly Target house Average Affordable Affordability Subplace Name Income price Sales Price Price Gap Ratio St Helena R 18K R 466K R 534K R -68K 1.1

Allanridge SP R 13K R 352K R 110K R 243K 0.3 St Helena Gold Mine R 5K R 137K

Bedelia R 18K R 480K R 377K R 103K 0.8 Thabong Ext1 R 3K R 84K R 33K R 52K 0.4

Bronville R 5K R 129K R 150K R -21K 1.2 Thabong Ext2 R 3K R 85K R 18K R 68K 0.2

Dagbreek R 17K R 462K R 397K R 65K 0.9 Thabong Ext3 R 4K R 99K

Doorn R 16K R 427K R 454K R -27K 1.1 Thabong Ext4 R 4K R 100K R 149K R -49K 1.5

Flamingo Park R 21K R 567K R 425K R 142K 0.8 Thabong Ext5 R 12K R 326K R 221K R 105K 0.7

Harmony R 17K R 453K R 288K R 166K 0.6 Thabong Ext6 R 5K R 123K R 189K R -66K 1.5

Harmony Gold Mine R 13K R 332K Thabong Ext7 R 4K R 101K

Havengaville R 6K R 159K R 1,500K R -1,341K 9.4 Thabong Ext8 R 3K R 90K R 138K R -48K 1.5

Hennenman SP R 12K R 324K R 354K R -29K 1.1 Thabong Ext9 R 4K R 96K R 89K R 8K 0.9

Hestersrus R 7K R 188K R 213K R -24K 1.1 Thabong Ext10 R 3K R 84K R 171K R -87K 2.0

Jan Cilliers Park R 19K R 492K R 667K R -175K 1.4 Thabong Ext11 R 2K R 65K R 100K R -35K 1.5

Jim Fouchepark R 36K R 949K R 1,086K R -137K 1.1 Thabong Ext13 R 3K R 81K R 25K R 56K 0.3

Kitty R 13K R 353K R 218K R 135K 0.6 Thabong Ext14 R 2K R 58K R 43K R 15K 0.7

Kutloanong SP R 4K R 100K R 94K R 5K 0.9 Thabong Ext15 R 2K R 65K

Lake Veiw R 22K R 584K R 307K R 277K 0.5 Thabong SP R 4K R 94K R 30K R 64K 0.3

Matjhabeng NU R 7K R 176K R 345K R -169K 2.0 Thabong SP1 R 5K R 140K

Meloding SP R 3K R 83K R 141K R -58K 1.7 Thabong SP2 R 2K R 52K R 45K R 7K 0.9

Merriespruit R 18K R 486K R 248K R 238K 0.5 Thabong SP3 R 2K R 64K R 41K R 23K 0.6

Merriespruit Gold Mine R 0K R 0K Thelma R 16K R 422K R 231K R 191K 0.5

Mimosa Park R 17K R 441K R 325K R 116K 0.7 Tswelangpele SP R 4K R 103K

Mmamahabane SP R 2K R 56K Ventersburg SP R 11K R 295K R 165K R 129K 0.6

Naudeville R 17K R 439K R 312K R 126K 0.7 Virginia Gold Mine R 5K R 136K

Ou Dorp R 12K R 313K R 232K R 81K 0.7 Virginia SP R 16K R 427K R 297K R 130K 0.7

Phathakahle SP R 4K R 100K R 55K R 45K 0.6 Voorspoed R 4K R 93K R 700K R -607K 7.5

Philippi R 20K R 517K R 225K R 293K 0.4 Welkom Central R 16K R 412K R 336K R 75K 0.8

Phomolong SP R 3K R 75K Western Holdings Gold Mine R 9K R 244K R 34K R 210K 0.1

President Brand Gold Mine R 8K R 200K Whites SP R 4K R 99K

Reitzpark R 11K R 292K R 272K R 20K 0.9 Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. Rheederpark R 5K R 133K R 168K R -35K 1.3

Riebeeckstad SP R 25K R 651K R 428K R 223K 0.7

Ross Kent North R 12K R 305K R 232K R 72K 0.8

Ross Kent South R 13K R 339K R 211K R 127K 0.6

Saaiplaas R 8K R 223K R 133K R 90K 0.6

Sandania R 8K R 219K R 295K R -76K 1.3

Seemeeu Park R 22K R 578K R 314K R 263K 0.5 41

St Helena R 18K R 466K R 534K R -68K 1.1

TheSt H Housingelena Gold Mine DevelopmentR 5K AgencyR 137K | Matjhabeng Mining Town Housing Market Report

Thabong Ext1 R 3K R 84K R 33K R 52K 0.4

Thabong Ext2 R 3K R 85K R 18K R 68K 0.2

Thabong Ext3 R 4K R 99K

Thabong Ext4 R 4K R 100K R 149K R -49K 1.5

Thabong Ext5 R 12K R 326K R 221K R 105K 0.7

Thabong Ext6 R 5K R 123K R 189K R -66K 1.5

Thabong Ext7 R 4K R 101K

Thabong Ext8 R 3K R 90K R 138K R -48K 1.5

Thabong Ext9 R 4K R 96K R 89K R 8K 0.9

Thabong Ext10 R 3K R 84K R 171K R -87K 2.0

Thabong Ext11 R 2K R 65K R 100K R -35K 1.5

Thabong Ext13 R 3K R 81K R 25K R 56K 0.3

Thabong Ext14 R 2K R 58K R 43K R 15K 0.7

Thabong Ext15 R 2K R 65K

Thabong SP R 4K R 94K R 30K R 64K 0.3

Thabong SP1 R 5K R 140K

Thabong SP2 R 2K R 52K R 45K R 7K 0.9

Thabong SP3 R 2K R 64K R 41K R 23K 0.6

Thelma R 16K R 422K R 231K R 191K 0.5

Tswelangpele SP R 4K R 103K

Ventersburg SP R 11K R 295K R 165K R 129K 0.6

Virginia Gold Mine R 5K R 136K

Virginia SP R 16K R 427K R 297K R 130K 0.7

Voorspoed R 4K R 93K R 700K R -607K 7.5

Welkom Central R 16K R 412K R 336K R 75K 0.8

Western Holdings Gold Mine R 9K R 244K R 34K R 210K 0.1

Whites SP R 4K R 99K

Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. Mind the Gap Chart Matjhabeng, 2013 Affordability indicators per suburb Allanridge R 13K R 352K R 110K R 243K 0,3 SP

Bedelia R 18K R 480K R 377K R 103K 0,8

Bronville R 5K R 129K R 150K R -21K 1,2

Dagbreek R 17K R 462K R 397K R 65K 0,9

Doorn R 16K R 427K R 454K R -27K 1,1

Flamingo R 21K R 567K R 425K R 142K 0,8 Park

Harmony R 17K R 453K R 288K R 166K 0,6

Harmony R 13K R 332K Gold Mine

13.5 Mind the Gap Havengavil.. R 6K R 159K R 1 500K R -1 341K 9,4

Hennenman R 12K R 324K R 354K R -29K 1,1 SP This chart is identical to the previous chart but shows bar linesHestersrus to betterR 7K visualiseR 188K differenceR 213K acrossR -24Kthe area.1,1 These Jan Cilliers R 19K R 492K R 667K R -175K 1,4 tables measure relative affordability for each suburb in the target areaPark in three ways: starting with the average income Jim R 36K R 949K R 1 086K R -137K 1,1 (column 1), it calculates the average sales price affordable to theFouchepark average family using standard underwriting terms (5% down, 11% for 20 years, up to 25% of household income, columnKitty 2). ItR 13K comparesR 353K that toR 218Kthe area’s averageR 135K sales0,6 price Kutloanong R 4K R 100K R 94K R 5K 0,9 (column 3). Column 4 (“Affordable Price Gap”) shows the differenceSP between the average sales price and the local Lake Veiw R 22K R 584K R 307K R 277K 0,5 target (affordable) house price. Column 5 divides the two valuesMatjhabeng to show the affordability ratio, the number of times it R 7K R 176K R 345K R -169K 2,0 NU Meloding might take the local income to afford the local sales price. As an example,R 3K in Havengaville,R 83K R it141K takes 9.4 timesR -58K the1,7 average SP income to afford the average sales price. Merriespruit R 18K R 486K R 248K R 238K 0,5

Merriespruit R 0K R 0K Gold Mine Mimosa R 17K R 441K R 325K R 116K 0,7 In Matjhabeng, the average income is R9 200, the average target Parkhouse price is R242 000 (price of house that income Mmamahab R 2K R 56K can afford) and the average sales price is R354 000. Thus, in 2013,ane SP it took 1.4 times the average income to afford the average house. These very high level indicators are usefulNaudeville when comparingR 17K R 439Kaffordability,R 312K to see whichR 126K 0,7areas are Ou Dorp R 12K R 313K R 232K R 81K 0,7 more or less affordable. This helps one to understand how housingPhathakahle strategies need to address affordability within the R 4K R 100K R 55K R 45K 0,6 SP town, including what resources or policies might be required toPhilippi help Rfill 20K these R 517Kgaps (ie.R 225K affordable financing,R 293K 0,4 buyer

Phomolong subsidies). R 3K R 75K SP President R 8K R 200K Brand Gol.. When affordability is an issue, perhaps equity of existing homeownersReitzpark R 11K can helpR 292K fund theR 272K gap. PoliciesR 20Kwill0,9 need to encourage the sale of lower-cost homes that can allow housing purchasesRheederpa.. R 5K further Rupstream 133K Rfor 168K lower-incomeR -35K households.1,3 Riebeecksta R 25K R 651K R 428K R 223K 0,7 d SP Ross Kent R 12K R 305K R 232K R 72K 0,8 North Ross Kent R 13K R 339K R 211K R 127K 0,6 South Mind the Gap Chart Saaiplaas R 8K R 223K R 133K R 90K 0,6 Matjhabeng, 2013 Affordability indicators per suburb Sandania R 8K R 219K R 295K R -76K 1,3

Allanridge Seemeeu R 13K R 352K R 110K R 243K 0,3 R 22K R 578K R 314K R 263K 0,5 SP Park

Bedelia R 18K R 480K R 377K R 103K 0,8 St Helena R 18K R 466K R 534K R -68K 1,1

St Helena Bronville R 5K R 129K R 150K R -21K 1,2 R 5K R 137K Gold Mine Thabong Dagbreek R 17K R 462K R 397K R 65K 0,9 R 3K R 84K R 33K R 52K 0,4 Ext1 Thabong Doorn R 16K R 427K R 454K R -27K 1,1 R 3K R 85K R 18K R 68K 0,2 Ext2 Flamingo Thabong R 21K R 567K R 425K R 142K 0,8 R 4K R 99K Park Ext3 Thabong Harmony R 17K R 453K R 288K R 166K 0,6 R 4K R 100K R 149K R -49K 1,5 Ext4 Harmony Thabong R 13K R 332K R 12K R 326K R 221K R 105K 0,7 Gold Mine Ext5 Thabong Havengavil.. R 6K R 159K R 1 500K R -1 341K 9,4 R 5K R 123K R 189K R -66K 1,5 Ext6 Hennenman Thabong R 12K R 324K R 354K R -29K 1,1 R 4K R 101K SP Ext7 Thabong Hestersrus R 7K R 188K R 213K R -24K 1,1 R 3K R 90K R 138K R -48K 1,5 Ext8 Jan Cilliers Thabong R 19K R 492K R 667K R -175K 1,4 R 4K R 96K R 89K R 8K 0,9 Park Ext9 Jim Thabong R 36K R 949K R 1 086K R -137K 1,1 R 3K R 84K R 171K R -87K 2,0 Fouchepark Ext10 Thabong Kitty R 13K R 353K R 218K R 135K 0,6 R 2K R 65K R 100K R -35K 1,5 Ext11 Kutloanong Thabong R 4K R 100K R 94K R 5K 0,9 R 3K R 81K R 25K R 56K 0,3 SP Ext13 Thabong Lake Veiw R 22K R 584K R 307K R 277K 0,5 R 2K R 58K R 43K R 15K 0,7 Ext14 Matjhabeng Thabong R 7K R 176K R 345K R -169K 2,0 R 2K R 65K NU Ext15 Meloding R 3K R 83K R 141K R -58K 1,7 SP Thabong SP R 4K R 94K R 30K R 64K 0,3

Thabong Merriespruit R 18K R 486K R 248K R 238K 0,5 R 5K R 140K SP1 Merriespruit Thabong R 0K R 0K R 2K R 52K R 45K R 7K 0,9 Gold Mine SP2 Mimosa Thabong R 17K R 441K R 325K R 116K 0,7 R 2K R 64K R 41K R 23K 0,6 Park SP3 Mmamahab R 2K R 56K ane SP Thelma R 16K R 422K R 231K R 191K 0,5

Tswelangpel Naudeville R 17K R 439K R 312K R 126K 0,7 R 4K R 103K e SP Ventersburg Ou Dorp R 12K R 313K R 232K R 81K 0,7 R 11K R 295K R 165K R 129K 0,6 SP Phathakahle Virginia R 4K R 100K R 55K R 45K 0,6 R 5K R 136K SP Gold Mine

Philippi R 20K R 517K R 225K R 293K 0,4 Virginia SP R 16K R 427K R 297K R 130K 0,7 Phomolong R 3K R 75K SP Voorspoed R 4K R 93K R 700K R -607K 7,5

President Welkom R 8K R 200K R 16K R 412K R 336K R 75K 0,8 Brand Gol.. Central Western Reitzpark R 11K R 292K R 272K R 20K 0,9 R 9K R 244K R 34K R 210K 0,1 Holdings G..

Rheederpa.. R 5K R 133K R 168K R -35K 1,3 Whites SP R 4K R 99K Riebeecksta R 25K R 651K R 428K R 223K 0,7 R 20,0K R 40,0K R 0K R 1 000K R 1 000K R 2 000K R -2 000K R 1 000K 0,0 5,0 10,0 d SP Avg Monthly HH income Target house price Avg Sales Price Affordable Price Gap Affordability Ratio Ross Kent R 12K R 305K R 232K R 72K 0,8 North Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds reg- Ross Kent R 13K R 339K R 211K R 127K 0,6 South

Saaiplaas R 8K R 223K R 133K R 90K 0,6

Sandania R 8K R 219K R 295K R -76K 1,3

Seemeeu R 22K R 578K R 314K R 263K 0,5 Park

St Helena R 18K R 466K R 534K R -68K 1,1

St Helena R 5K R 137K Gold Mine Thabong R 3K R 84K R 33K R 52K 0,4 Ext1 Thabong R 3K R 85K R 18K R 68K 0,2 Ext2 Thabong R 4K R 99K Ext3 Thabong 42 R 4K R 100K R 149K R -49K 1,5 Ext4 Thabong R 12K R 326K R 221K R 105K 0,7 Ext5 Thabong The Housing Development Agency | Matjhabeng Mining Town Housing Market Report R 5K R 123K R 189K R -66K 1,5 Ext6 Thabong R 4K R 101K Ext7 Thabong R 3K R 90K R 138K R -48K 1,5 Ext8 Thabong R 4K R 96K R 89K R 8K 0,9 Ext9 Thabong R 3K R 84K R 171K R -87K 2,0 Ext10 Thabong R 2K R 65K R 100K R -35K 1,5 Ext11 Thabong R 3K R 81K R 25K R 56K 0,3 Ext13 Thabong R 2K R 58K R 43K R 15K 0,7 Ext14 Thabong R 2K R 65K Ext15

Thabong SP R 4K R 94K R 30K R 64K 0,3

Thabong R 5K R 140K SP1 Thabong R 2K R 52K R 45K R 7K 0,9 SP2 Thabong R 2K R 64K R 41K R 23K 0,6 SP3

Thelma R 16K R 422K R 231K R 191K 0,5

Tswelangpel R 4K R 103K e SP Ventersburg R 11K R 295K R 165K R 129K 0,6 SP Virginia R 5K R 136K Gold Mine

Virginia SP R 16K R 427K R 297K R 130K 0,7

Voorspoed R 4K R 93K R 700K R -607K 7,5

Welkom R 16K R 412K R 336K R 75K 0,8 Central Western R 9K R 244K R 34K R 210K 0,1 Holdings G..

Whites SP R 4K R 99K

R 20,0K R 40,0K R 0K R 1 000K R 1 000K R 2 000K R -2 000K R 1 000K 0,0 5,0 10,0 Avg Monthly HH income Target house price Avg Sales Price Affordable Price Gap Affordability Ratio

Source: StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds reg- Affordable Suburbs by Average Sales Price 13.6 Mapping Affordability Matjhabeng, Suburbs by average sales price and household size, 2013 These maps show the importance of taking local household income,

Phathakahle SP or purchasing power, into the understanding of affordability. The first map shows average sales prices by suburb, with the darker areas having

Kutloanong SP higher prices. The second map shows

Ross Kent South the same area by affordability ratio, with the darker areas (those with higher affordability ratios) showing greater Riebeeckstad SP difference between suburb incomes and suburb sales prices. While some Hennenman SP areas appear affordable by sales Naudeville Bronville price (such as Kutloanong), they are Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP not as affordable when considering local incomes (the darker green on

Saaiplaas the second map). These analyses do not take into account the indebtedness Tswelangpele SP of potential buyers, an important

Kitty factor in determining bond eligibility. Meloding SP Rental housing, therefore, might be an important option towards providing

Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds well-located and professionally registry.

Total Residential properties Sales Price managed, affordable housing in 0 2000 50,000 500,000 those areas. 4000 6000 8000 10000 The areas with no dots have no residential properties on the deeds registry – they are farms or open space, mines or informal settlements.

Affordable Suburbs by Affordability Ratio Matjhabeng, by suburb, 2013 Relationship between average income and sales price (higher is less affordable)

Allanridge SP Phathakahle SP

Ross Kent North Ross Kent South

Riebeeckstad SP Rheederpark Thabong Ext15 Western Holdings Gold Mine Thabong Ext10 Jim Fouchepark Thabong Ext13 Bedelia Doorn Hennenman SP Jan Cilliers Park Bronville Matjhabeng NU Whites SP President Brand Gold Mine Phomolong SP

Saaiplaas Harmony Gold Mine Mmamahabane SP Virginia Gold Mine

Merriespruit Gold Mine

Meloding SP

Source: Centre for Affordable Housing Finance in Africa, with StatsSA Census 2011 (with CPI increase); South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Total Residential properties Affordability Ratio 0 0,1 3,0 2 000 4 000 6 000 7 016

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 14. Rental Index

14.1 Key Findings

In Matjhabeng, 23% of households rent, according to the 2011 StatsSA census. This is mid-range amongst the mining towns in the study.

The opportunity for rental housing development within Matjhabeng is strong for all areas; enhanced by the high number of informal settlements and the high rental percentages by mine employees. Those areas with greater density, modest incomes and affordability challenges are more likely to support quality, professionally managed, affordable rental housing. Rental housing also provides flexibility to employers and workers as mining markets expand and contract from time to time.

14.2 Policy Implications

Due to the cyclical, commodity- and demand-driven nature of these towns’ primary industry, rental housing becomes a very important housing solution.

Rapidly changing housing demand driven by mining activities makes a strong case for prioritising quality rental housing. If rental housing is well-situated and convenient to transport and centrally located in dense areas, it can bring social and economic cohesion and vibrancy to housing markets over the longer term.

The densifying of housing markets requires infrastructure upgrades and financial mechanisms which provide for long-term affordability and sustainability.

14.3 Quick Definitions:

Rental Index: A tool used to measure the potential suitability of local areas for rental housing, as measured by a group of five indicators which support rental housing including density, area median income, the affordability ratio and market growth as measured by the housing performance index. A higher score implies greater success for rental housing.

Affordability Ratio: the purchasing power of local incomes to afford local sales prices. The local average sales price is divided by the target house price. This shows the relationship between local incomes and local sales prices – a larger number means that local sales prices are harder for local income household to afford, implying a mismatch between local housing options and residents.

Area Median Income: the percentage of the average local income to the municipal average income, which allows for understanding of the income relative to the market overall and across many municipalities.

Housing Performance Index: the growth of the local suburb in six key housing market indicators as compared to the municipality growth. A higher number implies more growth.

Percent Households Renting: the number of surveyed households that rent divided by the total number of households, per StatsSA census 2011. This includes everything from bedrooms and backyard shacks to single family homes and sectional title units.

Population Density: the number of people per square hectare of the suburb, as provided by StatsSA.

Tenure: the terms under which land or buildings are held or occupied, eg. rental, ownership, etc.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 14.4 Rental Housing: Driving an Rental Index Matjhabeng, by suburb, 2013 Affordable Housing Option Those suburbs with a higher likelihood of rental demand Rental housing is one of the most efficient Allanridge SP and effective ways to provide affordable Phathakahle SP accommodation. In most South African towns, this means backyard shacks, an

Kutloanong SP important but very inefficient way of meeting housing needs. While a social housing sector Riebeeckstad SP exists, which targets low income families in multi-unit buildings, these are primarily Bedelia Havengaville Hennenman SP in large metropolitan areas. Many private Bronville Whites SP developers and investors are considering Phomolong SP expanding significantly into the rental Ventersburg SP Saaiplaas segment. If the demand is better Harmony Gold Mine Harmony Tswelangpele SP understood, Governments can meet housing backlogs quickly and affordably Meloding SP by promoting policies which target affordable rental housing.

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on In Matjhabeng, rental potential is strong the deeds registry. within specific areas, with Meloding having Number of Residential properties Type Rental Profile 0 Informal Settlement High the largest volume of rental potential. The 2 000 Mines Low two areas with high rental potential are both 4 000 6 000 in close proximity to informal settlements and 7 016 to a large number of mines.

Security of tenure through a lease agreement means that residents have assurance of quality Rental Index Method Implies Weight Indicator property management, consistent utility access and can even build up their credit history with 80 -120% area median Median Income Affordability 35% positive rent and utility accounts. Owners of income rental housing must locate their properties Population Density Exceeds metro average Density 35% competitively to ensure monthly occupancy, Housing Growing Demand 15% so rental housing provides affordable access to Performance Index transport hubs, jobs and community service. Ratio exceeds metro Affordability Ratio Affordability 15% average By bundling a set of housing market indicators, it is possible to find those places where a rental strategy might be well-suited. The map shows those areas with above-average densities, moderate incomes and above- average households that are currently renting, all important factors when considering the placement and promotion of rental housing.

Several conditions are crucial for the creation of successful and sustainable rental markets: density, high demand and affordability. By using existing housing performance indicators, it is possible to prioritise the presence of those indicators intentionally to pick up those areas primed for rental housing. In order to sustain rental housing at scale, projects must be able to achieve density to keep costs down and access ready markets, with good proximity to jobs, transport and educational opportunities to keep projects running smoothly.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 15. Key Concepts

The definitions of the concepts used in this profile are set out in alphabetical order below.

15.1 Affordable

Traditionally, affordable refers to housing or areas with prices or values below the overall market which target below- average incomes. It is often defined as R500 000 or less (but can be higher or lower depending on intent) because this is the amount that a household earning less than R16 000 on average can afford, which is the target limit of many Government subsidy schemes. Affordability is the relationship between the cost of housing (a mortgage bond payment or rent) and the income of the tenant or owner. Affordable housing is that which can be rented or purchased within certain constraints: in this report, with a mortgage equal to 28% of the borrower’s income, at 11% over 20 years, with 5% of the sales price paid as down-payment. Areas where the average income can afford the average sales price or more, are considered affordable.

15.2 Affordability Ratio

This ratio measures relative affordability by comparing the AVERAGE sales price to the average income within the same area – higher ratios meaning less affordability. The average sales price is divided by the AFFORDABLE sales price, which is calculated as the present value of typical mortgage terms using 28% of the average income (95% of the average sale price, at 11% for 20 years). A ratio of 1 means that the average home price is exactly equal to the average household income. Ratios over 1 represent the number of times by which the average income must be increased to afford the average home.

15.3 Appreciation

The rate, or percent change, over time between two values (most often price or value) is calculated by dividing the difference between the beginning and end values of the property in the timeframe, by the beginning value. The result is the percent by which the property value or price changed. It is a valuable means of comparing the rate of change across very different property markets, areas or market sizes.

15.4 Average

The result obtained by adding several amounts together and then dividing this total by the number of amounts. For instance, average sales price is calculated by adding up all sales within an area and dividing this total by the total number of sales within an area. The average is useful for comparing and understanding different areas, market sizes and property types.

15.5 Benchmark

An indicator that is calculated in the same way across a larger level (such as national or municipal levels) to compare with smaller areas (such as main places or suburbs). Benchmarks are useful for understanding the performance of housing markets because they provide a consistent means of comparing markets to each other and to larger areas. As example, local markets perceived as having modest appreciation rates may actually be growing quickly when compared with other areas, the metro or the Country as a whole. Benchmarks are key components of the housing performance index, which uses them to determine whether local areas or metros are changing faster than, about the same as, or slower than the metros or the Country. 15.6 Bonded Sale

A sales transaction transferring ownership of a property which includes an associated mortgage bond, used by the buyer to purchase that property and which the lender requires to be secured by that property. Bonded sales reflect lender investment in an area and perceptions of market strength and risk levels.

15.7 Churn

The total number of homes sold within an area over a one-year period, divided by the number of homes within that area. Similar to turnover, churn represents active market interest, a large pool of eligible buyers and willing sellers and ready access to mortgage financing. In affordable areas, lower churn can reflect reduced housing mobility rather than less marketability, as the result of fewer upward housing options for potential sellers and less access to bond financing for potential buyers. Other indicators (such as bond rates or types, loan to values, equity rates and income) can help differentiate marketability from pent-up market mobility.

15.8 Equity

The value of ownership interest in a property, primarily the current VALUE of a property minus the current value of any bonds or other claims on the property. Equity value grows as mortgage balances are paid down and property values increase. Equity is realised when a house is sold and is most often used to purchase another property, by increasing the amount available to purchase or lowering monthly mortgage payments (or both). Individual circumstances within neighbourhoods may vary widely but areas with higher aggregate levels of equity represent greater opportunity for upward mobility, both for existing residents who can sell and invest the equity in a new home and for lower-income households able to purchase the existing home.

15.9 Equity Growth

The rate at which an owner or investor’s equity value has changed over time, calculated by dividing the difference between the values of equity at the beginning and end of the period by the beginning year’s equity value. Growth in equity (along with income levels) can be used to determine market potential, as equity significantly boosts the purchasing power of potential buyers. Circumstances that increase equity return include prices that appreciate faster than debt is paid down, less debt, and registrations of new properties with no debt.

15.10 Formal Housing Market

A formal housing market is an area where owners sell or otherwise transfer residential properties (which have been registered on the national title and deed registry) to willing buyers who become the legal owners of those properties. Housing markets also include residences that are rented, traded, bartered or otherwise swapped, or legally occupied. This report tracks formal housing markets, as it only uses actual sales reflected on the South African deeds registry. It is estimated that 25 – 50% of all properties in South Africa are not registered.

15.11 Housing Continuum

The housing continuum includes all ranges and options of housing, from temporary shelter and informal housing to the highest variety of housing ownership and occupancy models and prices. A continuum implies a continuous, connected marketplace of housing options, which serve the full range of conceivable housing demands as people’s lifestyles and life circumstances change over time. In reality, most housing markets are an uneven distribution of housing supply and housing demand.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 15.12 Leverage

Leverage is the practice of purchasing something by borrowing part of the total cost and it is measured by the degree to which a buyer has borrowed funds to purchase a home. Also called gearing, leverage can be measured in several ways (such as loan to value or equity ratio) but all compare bond amounts to the housing value. Generally, homes or neighbourhoods that are highly leveraged are understood to be higher risk because owners lose less equity if they default. Areas with lower leverage rates are generally considered as being more attractive because lenders have less risk, while owners have more invested and have more potential EQUITY to invest in new housing options.

15.13 Market Segment

This refers to the aggregate of all properties within a certain Rand value. Properties are grouped by their value to better understand the unique dynamics of these market segments. Values are divided into four bands: values under R250 000; between R250 000 and R500 000; R500 000 to R1.2 million; and over R1.2 million. Generally, properties at or below R500 000 are considered affordable because the estimated monthly housing cost (R15 000 to R16 000) is considered the maximum income eligible for many Government subsidy programmes, above which potential buyers must access the unsubsidised housing market.

15.14 Market Share

Market share is the percentage of a market accounted for by a specific entity in that market. Lending market share is determined by the number of all loans in an area or bond portfolio originated or held by a single institution, divided by the total number of bonds in the area or portfolio. Market share can reflect the business model or the prevailing attitudes of particular lenders towards opportunity within certain areas. Lenders track their market share by area and value carefully: too high could mean that they are at greater risk if values decrease, while too low means that the lender may be losing business to competitors.

15.15 Rental Index

A score calculated for each suburb, to measure the potential suitability of local areas for rental housing, as measured by a basket of six indicators which are more favourable towards rental housing. A higher score, between 1 and 10, implies a greater likelihood of success. These indicators include density, the number of households currently renting, area median income, the affordability ratio, households to properties ratio and market growth as measured by the housing performance index. The index gives higher weight to aspects more suitable to rental housing, such as density and income, and moderate weight to the current number of households renting (as reported to the census), the local income as a percentage of the municipal median income, affordability (the relationship between local incomes and sales prices) and the number of households in the area to formal housing units on the deeds registry.

15.16 Suburb

A neighbourhood (within or beyond the central metropolitan area), with an identifiable name, often socially accepted borders and common characteristics. This report uses suburb boundaries as established and demarcated by StatsSA (and referred to in its documentation as sub-places). In 2011, there were about 22 000 sub-places within South Africa.

15.17 Value or Worth

The value of a property as determined by several factors, including recent comparable sales nearby, CHURN, lending activity in the area, specific and area property details such as the size, age and amenities. A property’s worth is often related to the amount of information available to make an appropriate determination, which is a contributing factor in undervaluing affordable areas where details on formal market activity are inconsistent. This study uses Lightstone’s (www.lightstone.co.za) proprietary valuation methodology to determine value.

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report 16. Source List

• Africa Mining IQ. [sa]. Coal Mining in South Africa. [O]. Available at http://www.projectsiq.co.za/coal-mining in-south-africa.htm. Accessed 09 February 2015 • Anglo American. 2011. The a Magazine: Partnership for Success. [O]. Available at http://southafrica. angloamerican.com/media/~/media/1AE5E719F7AB44B790756A552900D6B6.pdf Accessed 09 February 2015. • Council of Geoscience. 2015. Summary of Economic Geology of Provinces: Free State Province. [O]. Available at http://www.geoscience.org.za/economic-geology/free-state Accessed 09 March 2015. • Matjhabeng Local Municipality. [sa]. Matjhabeng Local Municipality (FS184). [O]. Available at http://www. localgovernment.co.za/locals/view/44/Matjhabeng-Local-Municipality. Accessed 09 March 2015. • Matjhabeng Local Municipality. [sa]. Profile of the Municipality. [O]. Available athttp://www.matjhabeng. fs.gov.za/?page_id=1350 Accessed 09 March 2015. • Matjhabeng Local Municipality. 2012. Matjhabeng Local Municipality 2012/2016 Draft IDP. Matjhabeng Local

The Housing Development Agency | Matjhabeng Mining Town Housing Market Report Notes Notes Notes

Department of Human Settlement The Housing Development Agency (HDA) 240 Justice Mahomed Street 6 - 10 Riviera Road Govan Mbeki House Riviera Office Park, Block A Sunnyside, Pretoria Killarney 0002 Johannesburg, 2193

Private Bag X645 (Minister) PO Box 3209 Pretoria Houghton, South Africa, 2041 South Africa, 0001 Phone: +27 11 544 1000 Phone: +27 12 421 1311 Fax: +27 11 544 1006/7 Website: www.dhs.gov.za Website: www.thehda.co.za