What Lies Ahead

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What Lies Ahead Settlements HOUSING Infrastructure in Southern Africa JANUARY 2014 WHAT LIES AHEAD THE LONG ROAD TO SAVANNA STUDENT RES GDP GROWTH HOUSING in Southern Africa CONTENTS NEWS 3 House Prices 2014… 3 Good News for Home Buyers 4 4 Etoll’s Impact on Property Prices 4 Cape Town’s Delivery Rate 6 Positive Outlook for 2014 7 Municipalities Owe Eskom R1,4 billion 8 Levy Liability 9 R10 billion Spending Wish List 9 Title Deeds for Philippi East 11 R1 billion for Insurance Claims HOUSING 10 Home Owners – Aim to Improve Property Values 16 10 GDP Report – Credit Health 12 The Long Road to Savanna… 16 The William – High Density Residential Development 17 Demand for Student Accommodation 18 Making It Happen – Affordable & Social Investment BRICKS & PAVING 20 Building Brick-By-Brick CEMENT & CONCRETE 22 Concrete Performance 24 Growing Demand for Flowcrete 20 DOORS, WINDOWS, FLOORS & WALLS 25 Luxury vinyl flooring PLUMBING, BATHROOMS & KITCHENS 26 Noswal Hall – Off Campus Student Accommodation BUILDING SUPPLIES & EQUIPMENT 28 Sealing and Bonding 29 Professional Power Tools INDUSTRY BUZZ, EVENTS & PRODUCTS 30 Builders New Superstores 26 ED’S NOTES HOUSING in Southern Africa THE TEAM EDITOR Carol Dalglish [email protected] PUBLISHER Jenny Warwick ADVERTISING Brenda Grossmann [email protected] Portrait of Nelson Mandela. (Image by Nelson Mandela Centre of Memory) Nelson Mandela Centre of Nelson Mandela. (Image by Portrait DESIGN Keep the dream alive ... Lesley Testa CIRCULATION South Africa’s greatest son passed away in December 2013 and the Karen Pearson world shared in our grief on the loss of the humble, larger than life, READER ENQUIRIES statesman who was beloved by all. Radha Naidoo e touched the lives of many programme celebrating his life, each SUBSCRIPTIONS people on every continent one keen to uncover stories on how Wendy Charles Hand served as a figure most the late President touched the lives of would love to emulate but few have the people. Our loss is heaven’s gain! PUBLISHED MONTHLY BY: the capacity, forbearance, courage Jenny Crwys-Williams’ book, ‘In and fortitude of Nelson Rolihlahla the words of Nelson Mandela’ lists Crown Publications cc Mandela. Madiba as saying: ‘In Eulogies to Crown House We are privileged to live in these the departed, the works of the living times. We were part of the most sometimes bear little relation to real- Corner Theunis and Sovereign pivotal moment in the country’s his- ity. The names of only very few people Streets, Bedford Gardens 2007 tory, when we participated in the first are remembered beyond their lives.’ P.O. Box 140 democratic election, led by the most On his tombstone he wanted a powerful liberator this continent has simple stone on which was written Bedfordview 2008 seen and one of few in the world. ‘Mandela’. He added, ‘There will be Tel: (011) 622 4770 His legacy is etched in our hearts life after Mandela’. Fax: (011) 615 6108 and we are richer for it. After honouring his contribution to My daughter and her friends the country, it’s important to remem- email:[email protected] joined fellow South Africans outside ber to keep the dream alive. www.crown.co.za Madiba’s Houghton home, on the To quote songwriter, Leslie Bri- weekend after his death, to celebrate cusse, ‘It’s a new dawn, It’s a new his life and pay their respects. There day, It’s a new life for me, And I’m were a couple of many and momen- feeling good’. PRINTED BY: tous outpouring of camaraderie, at Not yet, but we’ll get there! Tandym Print the time of South Africa’s first demo- Author, Steve Maraboli in ‘Un- cratic election in 1994, was surpassed apologetically You: Reflections on All rights reserved. No part of this by the love expressed across the con- Life and the Human Experience’, says, material may be reproduced, stored tinent and the world at his passing. ‘A new day – be open enough to see in a retrieval system or transmitted At the memorial service – held opportunities, be wise enough to be in any form or by any means, without at the FNB Stadium in Soweto - the grateful and be courageous enough prior permission from the publisher. rain poured. This was seen as a to be happy’. Disclaimer: Crown Publications can- great blessing, since in the African It’s an optimistic time. We at not be held responsible for any errors tradition it meant that Tata was be- Housing in Southern Africa look or omissions whatsoever. ing welcomed into heaven. So many forward to sharing our news, trends poignant words, simple and deep in- and the challenges throughout the trospections of Madiba’s life, volumes coming year. written in an attempt to capture the Best wishes for 2014. AVERAGE CIRCULATION essence of the man, the media frenzy (THIRD QUARTER 2012) covering the 10 day long official Carol Dalglish • Editor 3786 January 2014 News House prices 2014… Mike van Alphen, National Manager for the Rawson “2014 will, I believe, see house prices continue to rise by over 8% and this should encourage people to be investing Property Group’s bond origination division, now because in today’s market that sort of return is fairly says that the latest Absa house price review has satisfactory.” ■ stimulated speculation as to where the residential property market is heading. hose who watch these figures closely,” says van Alphen, “have tended to focus on the 9,3% “Tyear-on-year third quarter growth. This is a significant drop from the second quarter growth of 11,4% in the medium house segment, at an average price of R1 172 000. The question is whether house values will decline or not? Van Alphen says that South Africa’s economic growth rate in 2014 is likely to rise by 0,8% to 2,8%, with inflation at 6%. “House price growth,” says van Alphen, “is affected by a range of factors impacting on the consumer’s financial position: low economic growth in the country, low sav- ings, impaired credit records and diminished financial confidence. However, if one looks at the broader picture, then two factors become detectable in most housing economy reviews. "These are that house price increases, except in excep- tionally negative economic conditions, tend at least to keep pace with the national economic growth rate and with the inflation rate. Indeed, in most years the house price growth will be a few percentages ahead of the infla- tion rate, which is one of the reasons why investors find this asset class so satisfactory.” “While no one would call South Africa’s current or pro- jected growth rate stimulatory, it will at least be better than it has been recently – which augers well for house prices.” He concludes that although a small drop in house price growth is possible before the end of this year, the pros- pects, in his opinion, remain reasonably bullish. Good news for home buyers The prevailing low interest rates ccording to Dr Andrew Golding, CE of the Pam Golding Property are positive signs for a sustained provide a stable environment for group, the decision by the Mon- increase in activity and growth in A property values.” home buyers and owners. etary Policy Committee to leave the repo rate unchanged at an historic “As the market has recently low helps fuel positive sentiment in been characterised by significant the residential property market. demand in the more affordable Bearing in mind that there are a housing sector between R400 000 variety of factors, which impact on and R800 000, this also provides the committee’s decision, it is antici- opportunities for investment with pated that the repo rate will remain sound capital growth potential. In at current levels during 2014. The addition, many sectional title resi- combination of a stable and low in- dential developments offer good terest environment creates a climate value for money, particularly for of certainty which provides further the first time buyers, and a well run impetus for the property market,” complex in a good area can offer an says Golding. excellent return on investment over Historically low interest rates the medium to long term, coupled and pent-up demand for property with the fact that it involves lower maintenance,” he says. ■ January 2014 News Cape Town’s delivery rate In a report released by Cape Town’s Executive Mayor, Patricia De Lille, and Democratic Alliance Shadow Minister of Cooperative Governance and Traditional Affairs, John Steenhuisen, the City has made significant strides in creating a safe, well-run, and inclusive city of opportunity for all its residents. e Lille revealed there was an increase of 278% in their newly-built units. It transferred 3 308 title deeds the number of toilets provided in informal settle- related to historical housing projects, as well as 404 Dments from 14 591 in 2006 to 40 700 in 2013. The title deeds for home buyers of the City’s rental stock. City has also prioritised a massive allocation of resources Moody’s International’s latest Credit Rating report, to improve living conditions in informal settlements, released in April 2013, reaffirmed the City’s strong credit specifically the provision of electricity, water and sanita- rating of Aa3, the highest rating that a South African tion, refuse removal, area cleaning and rodent control. municipality can obtain from Moody’s. Eskom will connect 20 000 householders in informal The 2012/13 financial year saw the City spending a settlements with electricity at a cost of R190 million to be record R5,78 billion, comprising 92,9% of its budget – the paid by the City. The City of Cape Town has provided over City has also received its eighth consecutive unqualified 37 000 work opportunities created from 228 projects, with audit.
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