City of Matlosana

Working for integration

North West West Rand Ditsobotla Ventersdorp District Dr Kenneth Municipality Kaunda District Ngaka Modiri Municipality Molema District Municipality

Tswaing

Tlokwe City Council City of Matlosana

N12

Moqhaka

Mamusa Fezile Maquassi Dabi District Hills Municipality Lejweleputswa District Dr Ruth Segomotsi Municipality Mompati District Ngwathe Municipality Nala Sources: Esri, USGS, NOAA

City of Matlosana – North West

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 21

11. Lending Activity 29

12. Leverage 34

13. Affordability Profile 37

14. Rental Index 41

15. Key Concepts 43

16. Source List 46

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 NU – Non Urban, a Stats SA subplace designation RDP – Reconstruction and Development Programme SDF – Spatial Development Framework SP – Subplace StatsSA – Statistics South Africa

The Housing Development Agency | City of Matlosana 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. These indicators consider 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 indicators also highlight 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 | City of Matlosana 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 | City of Matlosana 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 is 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 | City of Matlosana Mining Town Housing Market Report 3. Context 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 City of Matlosana includes areas which are rich in gold, such as Klerksdorp and areas which are rich in uranium, such as Orkney, Stilfontein and Hartbeesfontein • The Municipality’s consists of 88,2% urban and 11,8% rural population • Population growth is slightly decreasing annually and possibly due to HIV incidence rate in the area • City of Matlosana is one of the four local municipalities in the Kenneth Kaunda district

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:

• City of Matlosana has a population of 398,676 • There was a 1,04% population growth between 2001 — 2011 • In 2011, over 32,7% of the population was unemployed, and the dependency ratio was 50,7 • The mining industry makes up the highest share of the GVA and employment market • There are 120,442 households in City Of Matlosana, with an average household size of 3.4 people • 82,9% live in formal dwellings, 92,8% of the households have flush toilets connected to a sewerage system, 50,1% piped water inside the dwelling, 89,3% weekly refuse removal and 90,3% electricity for lighting

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report

4. Context: Mining Sector Overview

This brief industry profile is provided to help 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).

City Of Matlosana is located in Dr Kenneth Kaunda District in the North West Province. It is one of the four local municipalities in the district. The major towns are Hartbeesfontein, Klerksdorp, Orkney and Stilfontein.

4.1 Mining Industry Profile

• City of Matlosana mining activities have downscaled drastically specifically in the year 2011 • This downscaling lead to 75% of original workforce to be retrenched in 2011 • The decline in the mining industry has resulted in the number of people living in poverty in the City of Matlosana almost doubling in 1996 — 2011 • Employment in the mining sector decreased to about 23% in 2011 • 99% of the population of the City of Matlosana are urbanised mining villages that form part of urban areas • The economy remains vulnerable due to its over-reliance on the mining industry with very few alternatives to mining • 1,5% of land in City Of Matlosana is for mines

4.2 Housing in the Mining Sector

Due to the remote locations of many mining operations, mining companies have long histories of providing housing solutions for its employees, from executive management to miners. Different approaches to housing policies vary and are not discussed in specific terms. Knowing the general Mine Housing Policies assists 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. Thus the housing markets within each town are driven largely by the business model of the specific mine company, rather than more familiar housing market dynamics. 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.

City of Matlosana’s mining activities are mostly in Platinum and produced by various mining companies, namely: Xstrata, Aquarius Platinum, Harmony and Anglo American. Their Mine Housing Policies outline the following:

• Aquarius Platinum offers a number of different housing options, ranging from housing allowances to houses built for employees • Anglo American committed more than R2 billion to facilitate home ownership and achieve the Mining Charter target of ‘one person per room’ through 2014 • Xstrata has eliminated hostels and unsustainable “mine villages” • XCSA pays industry leading “living-out allowances” (about R2000 per month) intended to offer employees with flexible housing options throughout the area

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 5. Context: Housing

The municipality has identified the following challenges and opportunities from its 2014/2015 IDP:

5.1 Housing Challenges:

• The City of Matlosana is experiencing a lot of housing backlog unfamiliar to mine decline • More housing backlog is expected to increase due to mineworkers being laid off from work • Lack of land availability for creation of new housing due to previous mines • The housing needs of the municipality are 45,000 units spread across the City of Matlosana

5.2 Housing Strategies:

• Formalisation of existing townships and existing backyard rentals in order to cater for the high demand of housing requirements • New projects outlined and prepared for further development. This will at least provide for a large-scale mixed-mode development in Matlosana that addresses the future needs of mining companies and commercial backlogs • Informal settlements need to be eradicated completely in the next three years • Housing developments need to incorporate solutions for mixed income families with different housing needs • Retain more land from housing requirements in order to meet the increasing backlog

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 6. Context: Market Reports

6.1 Report Coverage HDA Mining Town reports market coverage City of Matlosana, Data by suburb of census and formal deeds registry data, 2013 It is important to keep in mind that Faan Meintjies Nature Reserve SP these reports only cover the formal Tigane SP housing market, as captured by the Deeds Registry. Thus, there are four Hartbeestfontein B SP layers of information in the report: Doringkruin SP Matlosana NU La Hoff 1. Total StatsSA suburbs Stilfontein SP Khuma SP Manzil Park Flamwood Stilfontein Gold Mine 2. Suburbs with residential properties; Alabama Dawkinsville 3. Suburbs with residential properties Dominionville SP Jouberton Ext 20 Uraniaville Buffelsfontein Gold Mine Jouberton Boetrand sold Buffalo Ridge Ellaton Vaal Reefs North Gold Mine 4. Suburbs with residential properties

Vaal Reef Gold Mine C sold with a bond

Orkney Park Lourenspark Orkney SP Geyer This map shows all the census suburbs Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. in the town (pink) to all the suburbs Data coverage with residential properties with bonded 1 4 sales (dark red.) The chart shows what percentage of the town has a formal residential housing market. This may City of Matlosana Housing Report Coverage help explain some of the maps, and why some suburbs are included and Total Census Subplaces (SPs) 51 some may be omitted. For example, Total SPs with registered residential 45 88% information on bonded sales will only properties reference suburbs in which bonded Total SPs with sales 41 80% sales took place. Total SPs with bonded sales 41 80%

Market Area By The Numbers Suburbs 51 Suburbs with residential properties 45 Households 120, 443 Residential properties 73 952 Housing backlog 18 913 Backlog as percent of all properties 26% Households to properties ratio 1.6 Average monthly income R11 500 Average property value R293 000 Average sales price R480 000 Total residential value R21.6 billion

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

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 7. Key Findings: Housing Market Overview

The Matlosana housing market has experienced average levels of growth amongst the mining towns, which is likely due to continued stable growth and reduction of the mining sector and jobs along certain points of the Platinum Corridor, and the decreasing urbanization of previously undeveloped or rural areas within the municipality. Recent growth in Matlosana has not been evenly distributed across all markets.

City of Matlosana’s affordable housing gap of 1.58 is below the national average of 3. Despite an above-average monthly income (R11 500), there remain large disparities amongst incomes and affordable housing access within the municipality. This may prioritize 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.

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. Average equity in these areas increases 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 cost acquisition loans.

The area has a very little diversity and integration of housing values and property types, despite growth in some areas, which suggests a market which could be expanded to meet a wider range of needs and expectations. Formal mixed-income housing options which offer much-needed internal cross subsidization to keep prices affordable will likely do very well, and bodes well for a market less reliant on Government and mining intervention.

City of Matlosana has experienced a steady increase in non-traditional lenders, which accounts for a notable amount of all new lending in the municipality, especially in 2013 when the lending more than tripled. With the presence of hundreds of RDP units, 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 City of Matlosana is strong within specific areas. Data indicates that 29% of households are renting. Those areas with greater density, modest incomes, and affordability challenges are more likely to support quality, professionally managed and 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 | City of Matlosana Mining Town Housing Market Report 8. Housing Performance Profile

8.1 Key Findings: Housing Performance Index

The Matlosana housing market has experienced average levels of growth amongst the mining towns, which is likely due to continued stable growth and some reduction of the mining sector and jobs along certain points of the Platinum Corridor, as well as the decreasing urbanization of previously undeveloped or rural areas within the municipality.

Any levels of growth experienced in Matlosana have not been evenly distributed across all markets.

8.2 Policy Implications

With a market already showing stable growth, such as City of Matlosana, meeting increased housing demand will be a crucial factor in continued stabilisation of the town through any periods of future growth. 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 then comparing them 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 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 divided by the total number of properties.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 8.4 The Housing Performance Index Housing Performance Index City of Matlosana, 2013 Market growth of six key housing market indicators, compared to the metro This map identifies the Housing Performance Index by suburb (top) and total residential properties (bottom), to provide a sense of how local property markets are performing compared Tigane SP to the municipality as a whole. The Housing Performance Index (HPI) provides a glimpse of the

Hartbeestfontein B SP formal housing market only and does not include any demographic information. The weights were La Hoff

Wilkopies Stilfontein Gold Mine determined by how well the indicator reflects Flimieda Flamwood Stilfontein SP Manzil Park Elandsheuwel Khuma SP activity, increased investment and demand (and Pienaarsdorp Alabama Dawkinsville Roosheuwel how reliably the indicator can be measured). Jouberton Ext 20 Jouberton Boetrand Buffelsfontein Gold Mine Dominionville SP Ellaton This information is useful in understanding how Nooitgedacht the formal market is behaving (which is influenced Kanana SP Vaal Reef Gold Mine A by the presence of mines, informal settlements and Lourenspark the people who move in and around the towns). Geyer Orkney SP

Vaal Park This picture is intended to help understand how key housing sector partners (developers, investors) seek and measure opportunity, in order to better inform and coordinate Government planning processes and private sector motivation.

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. “Growing” suburbs are areas which exceed the Housing Performance Profile Growing municipality’s rate of change in any four of six key Stable market indicators. “Stable” areas meet or beat Slow Null the municipality in at least three indicators, and “Slow” areas are growing at rates less than the municipality in two (or fewer) of the six indicators. Housing Performance Index While an index provides quick understanding, it is City of Matlosana, 2013 Market growth profile by suburb, with property volume important to look more closely at the indicators themselves to understand more clearly the underlying factors affecting market growth Tigane SP and stability.

Hartbeestfontein B SP

Matlosana NU Doringkruin SP

Flimieda Stilfontein SP Wilkopies Flamwood Declercqville CAHF Housing Performance Index Manzil Park Pienaarsdorp Stilfontein Gold Mine MeiringspaErklandsheuwel Khuma SP Alabama Dawkinsville Roosheuwel Indicator Measured Implies Weight

Jouberton Ext 20 Oudorp Boetrand Buffelsfontein Gold Mine Price Average sales Appreciation 25% Dominionville SP Jouberton Ellaton price

Nooitgedacht Value Average Appreciation 25% property Vaal Reef Gold Mine A Kanana SP value Orkney SP Geyer Transac- Number of Demand 15% Vaal Park tions sales Percent Bonds per Investment 15% bonded sales

Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. Churn Repeat sales Activity 10% Total Residential properties Housing Performance Profile 0 Growing as a percent 5 000 Stable of total 10 000 Slow 15 000 Null properties ≥ 18 000 New New Growth 10% properties properties added to the registry

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Housing Performance Index Trends City of Matlosana, performance over time relative to the metro, 2007 -2013 6,5 5,0 Adamayview 4,0 0,0 1,0 0,0 6,5 5,0 Alabama 2,5 0,0 2,5 2,5 6,5

Boetrand 2,5 4,0 1,0 2,5 3,5

Buffelsfontein Gold Mine

4,0 Collerville 5,5 3,5 1,5 2,5 2,5

5,0 4,0 Davanna 4,0 0,0 0,0 2,5

6,5 6,0 5,0 6,5 Dawkinsville 2,5 3,5 6,5 4,0 Declercqville 2,0 5,0 0,0 2,5 9,0 6,0 Dominionville SP 5,0 2,5 3,5 2,5 6,0 6,0 Doringkruin SP 5,0 2,0 2,5 3,5 6,5 4,0 Elandia 5,5

1,0 2,5 0,0 10,0 4,0 Elandsheuwel 2,5 3,5 0,0 1,0 9,0 5,0 Ellaton 5,5

0,0 2,5 2,5 8,5 6,0 Flamwood 3,5 1,0 2,0 3,5

5,0 5,0 6,0 Flimieda 5,0 4,0 3,5

5,0 Freemanville 2,5 0,0 0,0 3,0 0,0 7,5 4,0 5,0 Geyer 4,0 0,0 2,5

5,5 Hartbeestfontein B 4,0 SP 4,0 4,0 0,0 0,0

5,0 4,0 Irene Park 5,0 2,5 0,0 2,5

5,5 4,0 Jouberton 5,0 2,5 2,5 2,5

Jouberton Ext 20 2,5 2,5 0,0 2,5 2,5 2,5

5,0 8,0 Kanana SP 5,5 4,0 4,0 2,5 8,0 8,0 5,5 6,5 Khuma SP

2,5 2,5

5,0 Housing Performance Index Trends Klerksdorp 4,0 4,5 Central 4,0 City of Matlosana, performance over time relative to the metro, 2007 -2013 0,0 6,5 0,0 5,0 Adamayview 4,0 Klerksdorp 0,0 1,0 0,0 Industrial 6,5 5,0 Alabama 4,0 5,0 2,5 0,0 2,5 La Hoff 2,5 1,0 1,0 1,0 6,5 0,0 7,5 Boetrand 2,5 4,0 Lourenspark 2,5 1,0 2,5 3,5 1,0 1,5 2,5 0,0 Buffelsfontein Gold Mine 5,0 5,0 Manzil Park 5,5 2,5 4,0 3,0 4,0 Collerville 5,5 3,5 1,5 2,5 Matlosana NU 2,0 2,0 4,5 2,5 1,0 0,0 1,0 5,0 4,0 Davanna 4,0 0,0 0,0 2,5 Meiringspark 3,5 3,5 1,0 4,0 3,5 3,5 6,5 6,0 5,0 6,5 Dawkinsville 5,0 2,5 4,0 3,5 Neserhof 2,5 5,0 1,5 6,5 0,0 4,0 Declercqville 2,0 5,0 Nooitgedacht 0,0 2,5 9,0 6,0 Dominionville SP 5,0 6,5 5,0 4,0 Orkney Park 2,5 3,5 2,5 1,0 2,5 0,0 6,0 6,0 Doringkruin SP 5,0 5,0 Orkney SP 3,0 5,0 3,5 2,0 1,5 2,5 2,5 0,0 6,5 4,0 Elandia 5,5 6,5 6,5 Oudorp 1,0 2,5 0,0 1,0 1,0 2,5 10,0 0,0 4,0 7,5 Elandsheuwel 2,5 3,5 0,0 Pienaarsdorp 1,5 2,5 1,0 0,0 9,0 1,0 0,0 5,0 Ellaton 5,5 6,5 6,5 6,5 Roosheuwel 0,0 2,5 2,5 4,0 8,5 1,0 0,0 6,0 Flamwood 3,5 1,0 2,0 Stilfontein Gold 3,5 Mine 2,5 0,0 0,0 0,0 0,0 0,0 5,0 5,0 6,0 6,0 Flimieda 5,0 4,0 3,5 Stilfontein SP 3,5 1,0 1,0 2,5 3,5 5,0 Freemanville 2,5 0,0 0,0 3,0 Tigane SP 0,0 2,5 2,5 7,5 2,5 2,5 2,5 2,5 4,0 5,0 Geyer 4,0 Uraniaville 2,5 0,0 2,5 0,0 0,0 0,0 0,0 0,0 5,5 Hartbeestfontein B 4,0 9,0 6,5 SP 4,0 4,0 Vaal Park 5,0 0,0 0,0 2,5 2,5 2,5 5,0 4,0 Irene Park 5,0 Vaal Reef Gold 2,5 0,0 2,5 Mine A

5,5 4,0 Jouberton 5,0 6,5 4,0 2,5 Wilkeville 2,5 2,5 4,0 1,0 1,0 2,5 10,0 Jouberton Ext 20 2,5 8,5 2,5 0,0 2,5 Wilkopies 5,0 2,5 2,5 2,0 4,0 4,5 8,0 5,0 2008 2009 2010 2011 2012 2013 Kanana SP 5,5 Source: Centre for Affordable Housing Finance in Africa, 2015. All indicators reflect formal market data as reflected on the deeds registry. 4,0 4,0 2,5 Growth Profile 8,0 Growing 8,0 5,5 6,5 Stable Khuma SP Slow 2,5 2,5 Null

Klerksdorp 4,0 5,0 4,5 Central 4,0 0,0 12 0,0 Klerksdorp Industrial The Housing Development Agency | City of Matlosana Mining Town Housing Market Report

4,0 5,0 La Hoff 1,0 1,0 0,0 1,0 7,5

Lourenspark 2,5 1,0 1,5 2,5 0,0

5,0 5,0 Manzil Park 5,5 2,5 4,0 3,0

Matlosana NU 2,0 2,0 4,5 1,0 0,0 1,0

Meiringspark 3,5 3,5 1,0 4,0 3,5 3,5

5,0 4,0 Neserhof 2,5 5,0 1,5 0,0

Nooitgedacht

6,5 5,0 4,0 Orkney Park 1,0 2,5 0,0

5,0 Orkney SP 3,0 5,0 1,5 2,5 0,0

6,5 6,5 Oudorp 1,0 1,0 2,5 0,0 7,5 Pienaarsdorp 1,5 2,5 0,0 1,0 0,0 6,5 6,5 6,5

Roosheuwel 4,0 1,0 0,0

Stilfontein Gold Mine 2,5 0,0 0,0 0,0 0,0 0,0 6,0 Stilfontein SP 3,5 1,0 1,0 2,5 3,5

Tigane SP 2,5 2,5 2,5 2,5 2,5 2,5

Uraniaville 2,5 0,0 0,0 0,0 0,0 0,0 9,0 6,5 Vaal Park 5,0 2,5 2,5 2,5

Vaal Reef Gold Mine A

6,5 4,0 Wilkeville 4,0 1,0 1,0 2,5 10,0 8,5 Wilkopies 2,0 5,0 4,0 4,5 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 Trend City of Matlosana, 2008 - 2013. 5,5 5,0

City of Matlosana

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-

8.5 Performance Over Time

These charts provide the Housing Performance Index by suburb over time using the six key indicators (price and value appreciation, sales and bonded sales, churn and new properties). Growth is relative to the municipality (and change from the preceding year), so it is important to compare these lines to the area’s overall performance and the direction in which the trends are headed. The city’s growth overall (below) appears to be on a solid upward trend, as compared to the province.

While most areas are experiencing slow growth, several housing markets (Khuma SP, Kanana SP and Dawkinsville) grew in 2013 compared to the prior year (those places where the growth profile score was greater in 2013 than 2012). The recent reduction of mining in Matlosana has created the overall market decline. In considering development investment over the long term, stability of growth is often a more important consideration when projecting future performance than high growth. Building housing opportunities between areas of high and low growth can better integrate housing markets overall. This information can help advise how to create a more cohesive and stable housing continuum, with fewer spikes and drops, and where to begin.

Areas with no data have no residential properties or sales, such as farms or open space, mines or industrial uses like power generation.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Key Performance Indicators 8.6 Housing Performance City of Matlosana, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index Indicators R 500K R 480K R 500K

)

e Six indicators – price and value u R 400K R 400K

l R 386K g

(

r e appreciation (top orange and blue lines),

(

R 300K R 300K e

R 293K i

y r total sales and bonded sales (middle

R 200K R 200K a o R 219K green bars and brown line), change in

v new properties and churn (bottom red

A R 100K R 100K and blue lines) – are the most telling R 0K R 0K 2 000 2 000 of growing, active housing property

) 1,897 s

e markets. The relationship between

(

1,482 i

n 1 500 1,413 1 500

n indicators provides clues as to what

l 1,333

1,263 )

s l 69% 1,102

e may be driving performance, what that

f n 1 000 1 000

(

d might mean for future development

o C 51%

R 55%

49%

52%

l potential and how it might affect or 500 500 l a 53%

T T be influenced by different housing 0 0 2,1% types, prices or target incomes.

)

d 2,0% 1,8% 2,0%

r 1,8%

( 1,7%

e 1,6%

r These charts compare the performance 1,5% 1,5% )

1,3% u

( of three ownership types, namely

1,0% 1,0% u

h N freehold, sectional title and estate

e ownership. The market appears to be

n 0,5% 0,6% 0,5%

C slowing down, consistent with most 0,3% 0,2% 0,0% 0,2% 0,2% 0,2% 0,0% markets across the country. Despite 2008 2009 2010 2011 2012 2013 Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflect- rising average sales prices, the number ed on the deeds registry. of sales dropped in 2009. Sales have Key Indicators Avg Property Value been mostly steady since. Bonded Avg Sales Price Total Residential Sales sales however dropped from 69% Total Bonded Residential Sales of all sales in in 2008 (brown line) Change in New Properties Churn to 51% in 2013.

Key Performance Indicators Property values have been trending City of Matlosana, Freehold properties, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index significantly below average sales prices R 500K R 500K R 490K in the past six years overall except for

)

l R 400K R 395K R 400K g the sectional title properties which

(

a have been almost equal, suggesting a R 300K R 277K R 300K e

steadier market than the other two.

o R 200K R 200K

r R 207K

A A R 100K R 100K Housing markets are very sensitive to R 0K R 0K access to credit, so lending information 1 500 1 500

) 1,382 s

a will be helpful in understanding this

( 1,119

1,113 a

a 1,064 i

n more closely (see Lending below).

a 997

a 1 000 1 000

)

l 873 n

s l 68% Churn rates have slightly increased

(

e since 2009 (blue line), indicating more

i 58% 55% n

e 500 500

o C 48% 54%

turnover of existing homes over time

52% l

T T as well. 0 0 1,8%

)

r 1,5% 1,5%

( 1,5% 1,4% 1,5% s 1,4%

)

p 1,1%

(

1,0% 1,0%

e 0,5% 0,5%

C 0,0% 0,1% 0,1% 0,0% 0,0% 0,1% 0,0% 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 | City of Matlosana Mining Town Housing Market Report Key Performance Indicators 8.7 Housing Performance City of Matlosana, Sectional Title properties, 2008 - 2013 Change over time of the six key indicators within the Housing Performance Index Indicators by Property Type R 400K R 400K R 400K R 389K

)

) e R 354K

l R 347K Different housing markets perform

(

R 300K R 300K a

o u in different ways, including freehold

(

t (free-standing) homes and sectional

P r R 200K R 200K

r title (subunits within a single property).

v R 100K R 100K A The area is predominantly freehold

A (see Market Size below). There is a R 0K R 0K

) 349 s small sectional title market, about

g 15% of the total, which has closely

( 300 300

a related sales prices and property 75% )

l 203 s

i 200 200 o

r values. Although the total bonded

(

e 156

o 154

148 e

t 126

i n residential sales have dropped from

100 100

a 75% in 2008 to 42% in 2013 (brown

o 55% 42%

T 54% 39% 43% T 0 0 line), sectional title sales appear

) to be picking up with an increase d 12,4%

(

s 10% 10% in sales of 47 from 2012 to 2013

t 8,8%

)

p (green bars).

6,8% b

(

r w 5,6%

e 5,2% 5,0% u

5% 5%

4,2% C

i There is a very small estate property

g 3,9% n market, which represents about

h 2,7%

C 2,1% 2,1% 2,0% 0% 0% 10% of all sales in the town. Churn 2008 2009 2010 2011 2012 2013 rates (blue line) are extremely high Source: SA Deeds Registry from Lightstone. All indicators reflect formal market data as reflected on the deeds registry. indicating very high turnover of existing Key Indicators homes. The change in new sales (red Avg Property Value Avg Sales Price line) is also trending higher compared Total Residential Sales Total Bonded Residential Sales to property types indicating possible Change in New Properties new developments in that segment. Churn

Lending is instrumental in the growth Key Performance Indicators City of Matlosana, Estate properties, 2008 - 2013 of housing markets, and the ability Change over time of the six key indicators within the Housing Performance Index to access bonds to buy sectional title R 1 000K R 975K R 1 000K houses has driven the growth of this

)

R 800K R 800K g

( R 787K housing type. The high percentage

(

R 600K R 600K e of bonded properties in 2013 might

P r R 526K

e be due to a slight lag in recording

R 400K R 400K a o R 382K

bonds from the sales in the prior year.

A A R 200K R 200K Sectional title is also an important R 0K R 0K affordable homeownership option.

) 166 166 s

r 150 150 S 140

(

e 121

110 )

103 n

a 100 100 e

59%

(

o C 38%

R 60% 44%

50 50

l 50%

45% l

T 0 0

)

d 11,1%

r 10% 10% ( 9,1%

9,0%

s 8,7%

)

7,1% e

7,9% u

l o 6,3%

(

5,6%

r w 6,1%

e 5% 5,6% 5% u

i 4,2%

a 2,8%

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 15

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 9. Market Size

9.1 Market Size: Key Findings Matlosana’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 highly segregated between higher-priced, actively selling private growing markets near the city centre, and further flung lower income, non-bonded Government sponsored developments and informal settlements (not on the deeds registry).

The implied demand for housing is high. The current estimated housing backlog represents about 26% of the town’s current total formal residential properties. 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. 9.2 Policy implications Government 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 then used to purchase new housing further up the housing continuum. For example, Government might prioritise new development between Government-dominated and private markets for more integration mixed-income sites, and fill spatial gaps within the town.

Encouraging the expansion of financingto lower income families will allow for those homes to be sold, and the proceeds used to support housing development further up the housing continuum.

Rapidly changing housing demand driven by mining activities makes a strong case for the prioritising of 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.

9.3 Quick Definitions: Market Size: the total number and distribution of important aspects of areas, including average home prices; home values; 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 you 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 of 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 be 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 | City of Matlosana Mining Town Housing Market Report Distribution of Properties and Values by Suburb 9.4 Market Size and City of Matlosana, 2013 Government Investment Formal residential properties, informal settlements and mines, by suburb in Housing

Market size measures the distribution of home prices, households and values in order to inform the potential scale of housing intervention strategies, and the Tigane SP impact of proposed developments on Hartbeestfontein B SP the surrounding area. It can also show the impact of Government investment Matlosana NU Doringkruin SP in housing markets. Comparing the Flamwood Elandsheuwel distribution of values to the housing Adamayview Stilfontein Gold Mine Manzil Park performance map, several moderate Meiringspark Pienaarsdorp Klerksdorp Central income areas are growing faster than Jouberton Ext 20Uraniaville Buffelsfontein Gold Mine the municipality. Dominionville SP Klerksdorp Industrial Jouberton Ellaton In Matlosana, properties with lower values are mostly on the outskirts Kanana SP of the town, in close proximity to Lourenspark Orkney SP Geyer transit corridors and coincide with

Vaal Park Government investment in housing (map two). It is a very positive fact that so many Government-sponsored housing units are on the deeds Source: South African deeds registry via Lightstone (Pty), Ltd; Housing Development Agency informal registry. However often these homes settlements and mines. are undervalued for two reasons. The Number of Residential properties Type Affordability 0 ≥ 15 000 Informal Settlement Under R250k subsidy value was often noted as the 5 000 Mines Between R250k - R500k sales price (rather than the cost), or 10 000 Between R500k - R1.2m Over R1.2m sales prices are driven low because buyers lack access to credit with which

Number and Percent Government Sponsored Residential Properties to purchase the homes at a more City of Matlosana, by total residential properties per suburb, 2013 realistic sales price, and must pay with the cash they have.

Encouraging the resale of Government-sponsored housing is Tigane SP an important means of expanding

Hartbeestfontein B SP housing options – for the sellers, who can move up the ladder with the equity Doringkruin SP Matlosana NU La Hoff from the sale of their property (see

Flimieda Wilkopies below), to the first time homebuyer Flamwood Stilfontein SP Adamayview purchasing the existing home. More Meiringspark Manzil Park Stilfontein Gold Mine Khuma SP Alabama activity in these markets will also raise

Neserhof Jouberton Ext 20 the value of the home, often a family’s Uraniaville Buffelsfontein Gold Mine Boetrand Jouberton Dominionville SP most valuable asset.

Ellaton

Kanana SP Nooitgedacht

Vaal Reef Gold Mine A Orkney Park Lourenspark Orkney SP Geyer

Vaal Park

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

Total Residential properties % Govt Sponsored 0 0% 30% 2 000 4 000 6 000 8 000 ≥ 10 000 17

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Market Size: Total Properties by Property Value Segment 9.5 Market Size by City of Matlosana, 2013 Sorted by suburb, by property value Value Segments Jouberton 1 283 18 636

Kanana SP 693 15 068 These charts provide the total properties Khuma SP 478 9 527 within each suburb by property value

Stilfontein SP 1 776 1 847 segment (below R250 000; which includes most of the Government- Alabama 2 688 945 sponsored housing), between Tigane SP 2 601 R250 000 - R500 000; between Flamwood 1 640 R500 000 and R1.2 million and over Orkney SP 1 493479 R1.2 million). Matlosana has very

Wilkopies 7631 001 few areas with property under R500

La Hoff 1 116 000 and a smaller variety of property values in several suburbs. This may Doringkruin SP 985 help to explain the area’s fairly stable Meiringspark 797 market. In small housing markets, Boetrand 648 Government interventions and Flimieda 674 programmes must be more targeted,

Ellaton 316 as their impact on the market overall

Neserhof 472 will be greater.

Adamayview The recent downscaling of mining in Declercqville 393 Matlosana and neighbouring towns Vaal Park 409 has created the market reduction Roosheuwel 375 indicated in the index trends above. A

Jouberton Ext 20 388 diverse approach to housing options

Freemanville 243 for its employees may help to expand the diversity and distribution of Hartbeestfontein B SP 304 housing options across town. Oudorp 190

Manzil Park

Irene Park 269

Geyer 265

Elandsheuwel 224

Wilkeville 179

Lourenspark 204

Klerksdorp Central 57

Dawkinsville 163

Dominionville SP 122

Elandia 108

Pienaarsdorp 67

Davanna 91

Orkney Park 66

Collerville 62

Matlosana NU 1

Stilfontein Gold Mine

Uraniaville

Vaal Reef Gold Mine A 0

Klerksdorp Industrial

Nooitgedacht 0

Buffelsfontein Gold Mine 0

0K 2K 4K 6K 8K 10K 12K 14K 16K 18K 20K 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 | City of Matlosana Mining Town Housing Market Report Market Size: Total Properties by Property Type 9.6 Market Size by Property City of Matlosana, 2013 Freehold, Sectional Title and Estate properties Type Jouberton 19 942 Kanana SP 15 772 Khuma SP 10 016 Matlosana’s residential properties are Stilfontein SP 167 3 542 predominantly freehold. Estate and Alabama 3 668 Tigane SP 2 668 sectional title properties are mostly Flamwood 3971 240 concentrated in the middle of town. Orkney SP 1 895 Wilkopies 4841 155 La Hoff 1 065 Where those housing options are located Doringkruin SP 805 is central to understanding its intended Meiringspark 822 Boetrand 753 target market and it’s potential. Flimieda 624 Ellaton 594 Neserhof 458 Adamayview 330 Declercqville 393 Vaal Park 448 Roosheuwel 392 Jouberton Ext 20 388 Freemanville 339 Hartbeestfontein B SP 351 Oudorp 154 Manzil Park 321 Irene Park 270

Geyer 269 Elandsheuwel 154 Wilkeville 180 Lourenspark 236 Klerksdorp Central Dawkinsville 176 Dominionville SP 127 Elandia 114 Pienaarsdorp 48 Davanna 96 Orkney Park 71 Collerville 62 Matlosana NU 19 Stilfontein Gold Mine 2 Uraniaville 1 Vaal Reef Gold Mine A 0 Klerksdorp Industrial 0 Nooitgedacht 0 Buffelsfontein Gold Mine 0 0K 1K 2K 3K 4K 5K 6K 7K 8K 9K 10K 11K 12K 13K 14K 15K 16K 17K 18K 19K 20K 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 Estate Sectional Title

Distribution of Property types City of Matlosana, by total residential properties per suburb, 2013

Tigane SP

Hartbeestfontein B SP

Matlosana NU Doringkruin SP Doringkruin SP Matlosana NU Wilkopies Wilkopies Doringkruin SP Flamwood Wilkeville La Hoff Adamayview Elandsheuwel Irene Park Pienaarsdorp Khuma SP Freemanville Stilfontein SP Irene Park Klerksdorp Central Alabama Klerksdorp Central Freemanville Buffelsfontein Gold Mine Klerksdorp Industrial Jouberton Dominionville SP Ellaton Boetrand

Ellaton

Vaal Reef Gold Mine A

Orkney Park

Orkney SP

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

Total Residential properties Property Type Description 0 Estate 1 000 Freehold 2 000 Sectional Title 3 000 ≥ 4 000 19

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Market Size: Households, Properties and Income 9.7 Market Size by City of Matlosana, 2013 Total households, renting, total properties, household to property ratio and average monthly income by suburb households and Income Households Renting (Grey) 0K 10K 20K 30K 40K Understanding the distribution 21% Jouberton 32 129 19 942 1,6 R 3,8K of households and incomes 21% Kanana SP 25 040 15 772 1,6 R 3,4K within Matlosana helps to inform 28% Khuma SP 14 152 10 016 1,4 R 3,3K scale, development impact, and 18% Matlosana NU 5 361 20 268,1 R 6,8K programme targets. 24% Alabama 4 644 3 668 1,3 R 6,4K 30% Census data is useful as the Stilfontein SP 4 354 3 709 1,2 R 15,2K only source of demographic Tigane SP 17% 2 668 1,6 R 3,2K 4 292 information consistently 76% Orkney SP 3 381 2 014 1,7 R 13,9K available at the suburb level, and 27% Flamwood 2 459 2 040 1,2 R 23,2K provides interesting insights into 32% Wilkopies 2 136 1 970 1,1 R 25,9K local differences. 30% La Hoff 1 471 1 290 1,1 R 23,8K 80% Stilfontein Gold Mine 1 471 2 735,5 R 4,4K Areas with high levels of renters 37% Doringkruin SP 1 341 1 276 1,1 R 26,1K (grey bars) also very often 38% Meiringspark 1 115 896 1,2 R 15,0K have the highest household 87% incomes (such as La Hoff and Klerksdorp Central 1 068 204 5,2 R 9,3K 23% Ellaton). It is suggested that Flimieda 1 063 699 1,5 R 22,0K these high levels of renters Boetrand 26% 766 1,2 R 16,2K 915 might be the combination of Ellaton 43% 642 1,4 R 22,3K 902 higher income executives who 52% Freemanville 869 363 2,4 R 10,7K rent (instead of own) their 39% Neserhof 713 638 1,1 R 21,4K homes as well as support staff 46% Adamayview 702 524 1,3 R 17,9K who rent nearby in backyard 40% Roosheuwel 593 392 1,5 R 12,0K accommodation. While this 26% Vaal Park 579 450 1,3 R 17,3K generates important income 30% Declercqville 550 487 1,1 R 16,6K to the owners, the creation 63% Elandsheuwel 526 262 2,0 R 13,7K of quality, affordable rental 19% housing in those areas can help Jouberton Ext 20 511 388 1,3 R 2,5K 95% to address some of the housing Buffelsfontein Gold Mine 499 0 R 2,6K backlog more quickly. Hartbeestfontein B SP 41% 351 1,4 R 9,8K 485 32% Irene Park 471 312 1,5 R 29,7K Areas with above average 35% Manzil Park 464 321 1,4 R 12,0K renters and moderate incomes 27% Geyer 350 272 1,3 R 13,9K (Dawkinsville and Freemansville) 42% Wilkeville 346 240 1,4 R 15,2K might mean families which are 87% Pienaarsdorp 344 123 2,8 R 6,3K ready for more formal rental 27% Lourenspark 331 236 1,4 R 17,6K options. 56% Dawkinsville 308 176 1,8 R 6,9K 53% Davanna 297 96 3,1 R 7,4K Ratios of households (from 43% StatsSA) to properties (from Oudorp 289 335 0,9 R 16,0K the deeds registry) – the red Dominionville SP 23% 127 1,7 R 3,5K 222 bar - can show degrees of Elandia 32% 124 1,3 R 11,4K 167 limited supply or informality. 44% Orkney Park 156 78 2,0 R 11,4K The informal settlements in 101% Vaal Reef Gold Mine A 156 0 R 6,6K Stillfontein Gold Mine has high 50% Nooitgedacht 132 0 R 7,6K populations, few registered 32% Collerville 102 62 1,6 R 10,5K properties, and low incomes. The 36% Klerksdorp Industrial 45 0 R 4,2K suburb with the highest number 0% Uraniaville 9 1 9,0 R 8,0K of households, Matlosana NU

Null with, over 5,300 households, Avg =1 643 Avg= R 12,4K 0K 10K 20K 30K 40K 0K 10K 20K 0 200 400 600 800 R 0,0K R 40,0K only has 20 registered properties Total Residential Total Households Properties HHs to Properties Ratio Avg monthly HH income in the area.

Source: Stats SA 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.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 10. Market Activity

10.1 Key Findings

Sales of units are concentrated in centrally located suburbs, in mostly middle income areas. Sales dropped across the country after 2008, and in Matlosana have picked up slowly afterwards, and mostly in upper-middle (orange) priced housing.

Bonded sales in lower markets are a smaller portion of the bonded market.Sales continue to be dominated by repeat sales and 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, either through lower cost products, more flexible terms, and/or inclusion of existing debt into a mortgage loan product.

Create financing products which 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 portion 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 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 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 | City of Matlosana Mining Town Housing Market Report 10.4 Sales and Bonded Sales by Property Value Segments

About 65% of all residential sales and 70% of bonded sales in Matlosana have been over R500 000 (the red and orange sections). Market share (the portion of the total) by property value segment has changed since 2008, suggesting an evolving housing market. 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 dropped over time, from 36% of all sales in 2008 to 29% in 2013. This might be due to credit indebtedness, which disproportionately impacts lower income borrowers, or lack of access to affordable homes with which to buy. Policies which help expand access to credit and provide more housing opportunities under R500 000, in the lower bands, can expand sales within that band.

Total Sales by Property Value Segment City of Matlosana, 2008 - 2013 All residential sales 2000

7% Total Bonded Sales by Property Value Segment City of Matlosana, 2008 - 2013 All residential sales 2000

1500 31% 10%

s 17%

l 13% a 10% 1500

l 25%

12% S

e 4% 24% l d 1000 27% 25% a

l 29% s 32%

e t 1000

56% n

B 3% l 3% 58% a t 5% 500 o 3% 25% 52% 53% 59% T 26% 4% 25% 24% 53% 500 26% 57%

63% 60% 63% 64% 60% 7% 0 7% 7% 7% 7% 7% 2008 2009 2010 2011 2012 2013 0 7% 10% 10% 8% 9% 8% Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators 2008 2009 2010 2011 2012 2013 reflect formal market data as reflected on the deeds registry. Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators 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 | City of Matlosana Mining Town Housing Market Report 10.5 Lending per Property Percent of Sales Bonded by Value Segment City of Matlosana, All residential sales, 2008 - 2013 Value Segments

72% This chart shows (by contrast to the previous 71% 70% charts) the percent of bonded sales within the 69% various property value segments. The relatively few formal bonded sales in the town make the 60% trend lines more dramatic. 59%

56% Overall, the total sales receiving bonds in Matlosana went down over the past d 50% e 51% d six years, but the drop was not evenly

B experienced across all property values.

e l 39% The lowest property values (the green line)

a 40%

f experienced the greatest drop in bonded sales

n since 2008, perhaps due to lack of access to

r credit or decreased supply of housing that

e 30% P falls within this segment. The lowest property value segments appears to be experiencing tiny increased levels of bonds in the past year, 20% 16% perhaps due to new housing being offered for sale.

10% The upper tiered properties more closely reflect the activity of overall bonded sales 0% rates across the country. Mid-range (orange 2008 2009 2010 2011 2012 2013 line) bonded sales experienced a spike in 2011 Year counter to the other property segments, and Market Segment currently appears to have a steady decrease Under R250K Betw R250K- R500K in bonding, perhaps a sign of lack of available Betw R500K - R1.2M homes or eligible borrowers in that category. Over R1.2M Increasing access to bonds directly increases sales activity.

Sales by Property Value Segments City of Matlosana, by suburb, 2013 10.6 Sales by Property Value Segments

Tigane SP This map shows the volume of sales activity Hartbeestfontein B SP (the size of the dot) by suburb across the town, by property value segment (slice of Matlosana NU the pies). Most sales took place in the central Doringkruin SP CBD and surrounds. The upper middle (orange Wilkopies Wilkeville Flamwood Stilfontein Gold Mine slices) valued properties saw most activity, but Elandsheuwel Manzil Park Klerksdorp Central some lower priced homes (blue and green) also Alabama Roosheuwel Jouberton Ext 20 Buffelsfontein Gold Mine saw registered sales activity, a potential sign of Klerksdorp Industrial Dominionville SP Jouberton Ellaton active (increased) supply and steady demand.

Nooitgedacht Access to credit is a significant boost or barrier Vaal Reef Gold Mine A to housing market growth. While some Lourenspark Orkney SP suburbs offer a range of housing price options,

Vaal Park pinpointing product prices and types to specific areas, especially considering local affordability, is key to ensuring programme success. Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry.

Total Residential Sales Property Value Segment 0 Under R250k 50 Between R250k - R500k 100 Between R500k - R1.2m 150 Over R1.2m 200 ≥ 250

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Total Sales by Sales Type 10.7 Sales by New and City of Matlosana, 2013 New and repeat sales Repeat Sales 19 Adamayview 0 10 An important distinction in market Alabama 2 48 performance is the sale of new homes Boetrand 0 (which have never appeared on the Buffelsfontein Gold Mine deeds registry) and the resale of existing 3 Collerville 0 homes. The chart shows new (green) 3 Davanna 0 and repeat sales (orange) by suburb. In 12 Dawkinsville most mining towns, new registrations 0 23 Declercqville are clustered in only a few suburbs. The 0 4 few new sales in Matlosana appear to Dominionville SP 0 be clustered within several suburbs 87 Doringkruin SP 6 in the centre of town. Resales in 5 Elandia 0 Matlosana dominated new sales. 20 Elandsheuwel 5 22 Ellaton New sales can also show the recent 0 163 Flamwood registration of Government-sponsored 34 41 housing investment. An important Flimieda 1 16 point is to recognise the impact Freemanville 1 of newly registered Government 12 Geyer 0 investment in housing. Often these 15 Hartbeestfontein B SP 0 registrations may be perceived as a 18 Irene Park market distortion, but the deeds issued 0 36 Jouberton on Government-sponsored housing 2 represent real assets which now can be Jouberton Ext 20

59 traded and loaned against, and are key Kanana SP 14 to moving up the housing ladder. Thus, 23 Khuma SP 0 the housing market has in fact grown. 3 Klerksdorp Central 2 0 Klerksdorp Industrial Suburbs with no data reflect areas with no 0 68 sales or new registrations. La Hoff 0 6 Lourenspark 1 5 Manzil Park 0 5 Matlosana NU 0 62 Meiringspark 6 42 Neserhof 0 Nooitgedacht

2 Orkney Park 0 44 Orkney SP 1 19 Oudorp 1 1 Pienaarsdorp 0 24 Roosheuwel 0 0 Stilfontein Gold Mine 0 292 Stilfontein SP 3 1 Tigane SP 0 0 Uraniaville 0 10 Vaal Park 1 Vaal Reef Gold Mine A

18 Wilkeville 0 119 Wilkopies 42 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 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

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Sales Trends by Sales Type City of Matlosana, 2008 - 2013 New and Repeat Sales 33 33

24 19 Adamayview 22 22

0 2 1 0 0 0 28 29 17 Alabama 19 10 2 12 0 0 0 2 2

42 63 51 48 Boetrand 35 29 0 0 0 0 0 0

Buffelsfontein Gold Mine

Collerville 4 5 3 1 0 0 20 0 1 0 8 7

Davanna 3 3 0 02 02 0 0 0 12 12

Dawkinsville 6 8 8 6 0 0 0 0 0 0 25 22 21 23 25

Declercqville 16 2 1 0 0 0 0

7 5 5 4 Dominionville SP 3 31 0 0 0 0 0 125 114 100 81 87 Doringkruin SP 73 5125 8 7 8 6 7 5 5 Elandia 5

0 02 0 0 0 1 0 2129 20 12 Elandsheuwel 13 5 50 05 0 0

35 30

22 Ellaton 18 20 19 2 0 0 0 1 0 163 151 104

Flamwood 111 71 98 84 31 20 21 14 34

46 38 41

Flimieda 29 30 32

0 0 1 0 1 1 19 16 11 11 Freemanville 8 8 0 0 0 0 0 1 16 16 20

Geyer 12 12

1 0 0 0 1 4 0 21 15 15

Hartbeestfontein B SP 12 9 10 1 1 2 0 0 0 19 16 18

Irene Park 9 9 3 2 6 0 1 0 0

77 47 Jouberton 51 36 17 45 31 4 2 1 0 2

Jouberton Ext 20

125

Kanana SP 56 59 21 13 4 7 14 28 36 31 14

Khuma SP 15 23 18 27 28 14 Sales Trends by Sales Type 4 2 10.8 Market Activity 14 0 City of Matlosana, 2008 - 2013 0 New and Repeat Sales 33 33 amongst New and 33 Klerksdorp Central 12 8 22 24 22 19 Adamayview 12 2 Repeat Sales 0 4 7 3 1 4 2 0 2 1 0 0 0 28 29 17 Klerksdorp Industrial 0 0 0 0 0 0 The growth and maturity of Alabama 19 10 2 12 0 0 0 2 2 79 housing markets can often 68 76 70 42 63 63 51 48 La Hoff 56 be found by comparing new Boetrand 35 2 2 2 2 29 3 0 homes and resales over time. 0 0 0 0 0 0 12 12 11 11 The growth of existing home Lourenspark 7 6 Buffelsfontein Gold 2 1 sales (the orange line) indicates Mine 0 0 0 1 12 9 sustained interest of housing 9 9 Manzil Park 7 6 5 Collerville markets by borrowers and lenders. 4 5 1 3 0 0 0 1 0 0 0 0 02 The thicker lines reflect areas with 0 1 0 6 5 6 8 7 5 4 3 Matlosana NU more sales.

Davanna 2 0 00 3 3 1 0 0 02 02 0 0 0 88 12 12 44 62 Often volumes of new homes in Meiringspark Dawkinsville 6 8 8 40 40 45 6 2 2 5 2 prior years become resales in later 9 6 0 0 0 0 36 0 0 42 years (for example, Stilfontein 25 22 21 23 25 Neserhof 15 17 20 SP’s uptick of resales in 2013). Declercqville 16 2 3 16 11 0 1 2 1 0 0 0 0 0 Understanding how mining

7 Nooitgedacht companies create new units helps 5 5 4 Dominionville SP 3 31 0 0 0 one to understand their existing 0 0 7 5 125 114 100 4 and potential contribution to 81 87 Orkney Park 4 Doringkruin SP 1 73 0 0 0 2 expand the local housing economy. 0 1 0 5125 8 7 8 6 43 48 60 7 44 5 5 Orkney SP 29 33 Suburbs with no information had no Elandia 5 11 0 1 0 3 1 0 02 0 0 residential sales in the past two years. 0 1 0 15 19 16 2129 17 20 15 14 12 Oudorp Elandsheuwel 13 0 0 0 0 1 5 0 0 0 0 0 5 5 6 7 35 30 5 Pienaarsdorp 22 Ellaton 1 18 20 19 1 0 0 02 0 0 2 1 0 0 0 26 1 0 24 163 24 24 151 104 Roosheuwel 16 13 Flamwood 111 71 98 0 0 0 0 84 31 20 21 0 0 14 34

46 38 41 0 Stilfontein Gold Mine 0 0 0 0 Flimieda 29 30 32

0 0 1 0 1 1 295 245 292 19 16 11 11 Stilfontein SP 238 248 185 Freemanville 14 8 23 14 8 8 17 3 0 0 0 0 0 1 2 16 20 16 Tigane SP 1

Geyer 12 12 0 0

1 0 0 0 1 4 0 21 15 15 Uraniaville 0 0 0 0 0 0 Hartbeestfontein B SP 12 9 10 1 1 2 0 0 0 21 20 29 19 16 18 Vaal Park 19 10 Irene Park 0 0 0 9 9 0 3 2 0 4 1 6 0 1 0 0

77 Vaal Reef Gold Mine A 47 Jouberton 51 36 17 45 31 4 2 1 16 0 2 14 18

Wilkeville 10 9 Jouberton Ext 20 8 0 0 0 0 1 0

115 119 125 125 99 Wilkopies 67 5931 92 34 Kanana SP 42 56 59 21 13 28 35 346 7 14 28 31 14 2008 2009 2010 2011 2012 2013 Year 48 Sales Type Khuma SP 15 23 18 27 28 Total New Sales 14 4 14 0 2 Total Repeat Sales 0 33

Klerksdorp Central 12 8 12 0 2 4 7 3 1 4 2

Klerksdorp Industrial 0 0 0 0 0 0

79 68 76 70 25 63 La Hoff 56

2 2 2 2 3 0 The Housing1 2Development Agency | City of Matlosana Mining Town Housing Market Report 12 11 11

Lourenspark 7 6

2 1 0 0 0 1 12 9

9 Manzil Park 7 6 5 1 0 0 0 0 0 6 5 6 5 4 3 Matlosana NU

2 0 00 1 0 88

44 62 Meiringspark 40 40 45 2 2 5 2 9 6 36 42

Neserhof 15 17 20 2 3 16 11 0 1 0

Nooitgedacht

7 5 4

Orkney Park 4 1 0 0 0 2 0 1 0

60 43 48 44 Orkney SP 29 33 11 0 1 0 3 1 15 19 16 17 15 14 Oudorp

0 0 0 0 0 1 6 7

5 Pienaarsdorp 1 1 0 0 02 0 10 26 24 24 24

Roosheuwel 16 13 0 0 0 0 0 0

0 Stilfontein Gold Mine 0 0 0 0

295 245 292

Stilfontein SP 238 248 185 14 8 23 14 17 3

Tigane SP 1

0 0

Uraniaville 0 0 0 0 0 0

21 20 29

Vaal Park 19 10 0 0 0 0 0 4 1

Vaal Reef Gold Mine A

16 14 18

Wilkeville 10 8 9 0 0 0 0 1 0

115 119 125 99 Wilkopies 67 5931 92 34 42

28 35 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.

Some areas show a high increase in sales for more than two markets (Wilkeville, Wilkopies, and Elandsheuwel). Increases in bonded sales were mostly in one market type in the various suburbs and mostly over 100% increase. The upper market (red line) experienced the least activity across all suburbs.

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

Market Activity: Total Sales and Change in Sales City of Matlosana, 2012 - 2013 Change in residential and bonded sales Adamayview 9

Alabama -50%-100%

Boetrand 38 400% 20 300%

Collerville 3 50% 0 -100%

Davanna 3 -50% 1 -75%

Dawkinsville 150%

Declercqville 7 -67% 250% 13 30%

Dominionville SP 4 33% 0

Doringkruin SP 9 74 7 39 7

Elandia 5 67% 3 50%

Elandsheuwel 150% 500% 9 200%

Ellaton 9 10

Flamwood 34 155 7 162%58% 18 64

Flimieda 40 31

Freemanville 15 150% 9 125%

Geyer -100% 9 -100%

Hartbeestfontein B SP -7% 6 20%

Irene Park 14 100% 6

Jouberton 28 6 -60%

Kanana SP 61 85% 140% 7 6 500%

Khuma SP 100% -33%

Klerksdorp Central -100% -100%

Klerksdorp Industrial 0 0

La Hoff 54 75% 41 6

Lourenspark 7 0% 1 -80%

Manzil Park -80% -100%-100%

Matlosana NU 5 -55% 0 -100%

Meiringspark 62 29

Neserhof 26 420% 12 100%

Orkney Park 2 -60% 1 -50%

Orkney SP 33 19 5 -100%

Oudorp 8 -40%

Pienaarsdorp -67% -100%

Roosheuwel 24 85% 17 143%

Stilfontein Gold Mine 0 0

Stilfontein SP 144 148 81 81

Tigane SP 1 -50% 0 Uraniaville

Vaal Park -67%

Wilkeville 100% 150% 200% 9 350%

Wilkopies 60 84 75% 37 53 8 0 50 100 150 200 250 300 0% 200% 400% 600% 0 20 40 60 80 100 120 140 160 -200% 0% 200% 400% 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 | City of Matlosana Mining Town Housing Market Report Market Activity: Total Sales and Change from previous year 10.10 Change in New and City of Matlosana, 2012 - 2013 Change in new and repeat sales Repeat Sales

Adamayview 19 -14% 0 This chart shows the specific rate Alabama 10 -17% 2 of activity of new and repeat Boetrand 48 37% 0 sales from 2012 to 2013. As seen Buffelsfontein Gold Mine before, new sales were concentrated Collerville 3 50% 0 in several areas such as Flamwood, Davanna 3 -57% 0 Irene Park, and Kanana SP. Dawkinsville 12 50% 0

Declercqville 23 -8% 0 Many of the developments built

Dominionville SP 4 33% 0 -100% by the Government are heading

Doringkruin SP 87 7% 6 -25% into their 8th year, and become eligible for resale by their owners. Elandia 5 0% 0 By understanding when those units Elandsheuwel 20 54% 5 come on-line for resale, Government Ellaton 22 16% 0 can align policies which encourage Flamwood 163 47% 34 143% sale and development nearby, Flimieda 41 28% 1 which can help leverage that Freemanville 16 100% 1 prior investment, expand

Geyer 12 -40% 0 housing options and stimulate

Hartbeestfontein B SP 15 0% 0 -100% movement up the next rung up

Irene Park 18 100% 0 -100% the housing ladder. Resales are an important means of recycling Jouberton 36 -20% 2 100% existing homes to make available Jouberton Ext 20 more housing options. Kanana SP 59 90% 14 100% Khuma SP 23 -18% 0 -100% Suburbs with no information had no Klerksdorp Central 3 -57% 2 0% residential sales in the past two years.

Klerksdorp Industrial 0 0

La Hoff 68 -11% 0 -100%

Lourenspark 6 -14% 1

Manzil Park 5 -44% 0

Matlosana NU 5 -17% 0 -100%

Meiringspark 62 38% 6 200%

Neserhof 42 110% 0 -100%

Nooitgedacht

Orkney Park 2 -60% 0 -100%

Orkney SP 44 2% 1 -67%

Oudorp 19 12% 1

Pienaarsdorp 1 -86% 0

Roosheuwel 24 85% 0

Stilfontein Gold Mine 0 0

Stilfontein SP 292 18% 3 -79%

Tigane SP 1 -50% 0

Uraniaville 0 0

Vaal Park 10 -47% 1

Vaal Reef Gold Mine A

Wilkeville 18 100% 0

Wilkopies 119 20% 42 20%

0 100 200 300 -100% 0% 100% 0 20 40 -200% 0% 200% 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 | City of Matlosana Mining Town Housing Market Report Market Activity: Average Property Values and Sales Prices City of Matlosana, 2007 - 2013 Property value and sales price by suburb R 565K R 582K R 542K Adamayview R 469K

R 247K R 178K Alabama R 152K R 171K

R 303K R 388K Boetrand R 291K R 305K

Buffelsfontein Gold Mine

R 536K R 557K R 435K Collerville R 367K

R 501K R 391K R 485K Davanna R 301K

R 257K R 352K Dawkinsville R 231K R 261K

R 447K R 560K Declercqville R 465K R 480K

R 141K R 149K Dominionville SP R 98K R 118K

R 614K R 779K Doringkruin SP R 682K R 368K R 485K R 516K Elandia R 411K R 452K

R 294K R 364K Elandsheuwel R 265K R 282K

R 460K R 357K R 428K Ellaton R 350K

R 722K R 906K Flamwood R 639K R 488K R 766K R 597K R 699K Flimieda R 579K

R 395K R 504K Freemanville R 409K R 417K 10.11 Average Property Values and Sales Price R 554K R 633K R 497K R 596K The relationship between local sales prices (orange lines) and averageGeyer property values (blue lines) can tell much about the activity and integration of supply and demand. Every house in a suburb has a value, Rdetermined 427K by the number ofR sales, 547K Hartbeestfontein B SP R 387K changes in prices, churn (repeat sales) and other factors present in a robust housing market.R 269K Only houses which have sold have sales prices, but this lowers the value of homes in markets with fewer sales. R 731K R 939K Irene Park R 736K R 578K As markets formalise and strengthen, these trends inform each other moreR 145Keffectively, and the trendR lines154K R 124K become almost parallel over time (such as Wilkopies, StilfonteinJouberton SP, and Flamwood).R 11 Sales1K prices within Khuma SP and R 187K Klerksdorp Central appear to be surpassing their property value since 2012. R 135K Jouberton Ext 20

R 160K Sales in many areas of Matlosana have been incrementally increasing and Rvalues 113K are rising in most areas, indicating steady active markets. Rising sales prices in affordableKanana areas SP can reflectR improved 100K access to credit, as R well107K as R 96K R 117K increasing interest in the neighbourhood. R 103K Khuma SP R 73K

Market Activity: Average Property Values and Sales Prices R 518K City of Matlosana, 2007 - 2013 R 360K R 377K Property value and sales price by suburb Klerksdorp Central R 247K R 565K R 582K R 542K Adamayview R 469K Klerksdorp Industrial R 247K R 178K R 639K Alabama R 171K R 505K R 152K La Hoff R 499K R 527K

R 303K R 388K Boetrand R 291K R 305K R 406K R 519K Lourenspark R 312K R 333K

Buffelsfontein Gold Mine R 268K R 371K Manzil Park R 263K R 231K R 536K R 557K R 435K R 557K Collerville R 367K R 455K R 527K Matlosana NU R 501K R 185K R 391K R 485K Davanna R 481K R 608K R 301K Meiringspark R 439K R 322K R 257K R 352K Dawkinsville R 231K R 261K R 520K R 646K Neserhof R 419K R 210K R 447K R 560K Declercqville R 465K R 480K Nooitgedacht

R 141K R 149K R 542K Dominionville SP R 98K R 118K R 426K Orkney Park R 451K R 510K R 779K R 614K R 682K Doringkruin SP R 400K R 508K R 368K Orkney SP R 365K R 374K R 485K R 516K Elandia R 411K R 452K R 447K R 541K R 445K Oudorp R 356K R 294K R 364K Elandsheuwel R 265K R 282K R 282K R 310K Pienaarsdorp R 147K R 460K R 90K R 357K R 428K Ellaton R 350K R 537K R 419K R 469K Roosheuwel R 389K

R 722K R 906K R 377K Flamwood R 639K R 294K R 488K Stilfontein Gold Mine R 766K R 597K R 699K Flimieda R 579K R 383K R 489K Stilfontein SP R 351K R 387K

R 395K R 504K Freemanville R 409K R 417K R 129K Tigane SP R 84K R 63K R 554K R 633K R 55K R 596K Geyer R 497K R 548K R 702K Uraniaville

R 427K R 547K R 604K Hartbeestfontein B SP R 387K R 460K R 269K Vaal Park R 430K R 365K R 731K R 939K Irene Park R 736K R 578K Vaal Reef Gold Mine A R 145K R 154K Jouberton R 111K R 124K R 519K R 662K Wilkeville R 464K R 479K R 187K R 135K Jouberton Ext 20 R 867K R 1 101K Wilkopies R 772K R 628K R 160K R 113K 2008 2009 2010 2011 2012 2013 Kanana SP R 100K R 107K Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry. Measure Names R 96K R 117K Avg Property Value R 73K R 103K Khuma SP Avg Sales Price

R 518K R 360K R 377K 28Klerksdorp Central R 247K

Klerksdorp Industrial The Housing Development Agency | City of Matlosana Mining Town Housing Market Report

R 505K R 639K La Hoff R 499K R 527K

R 406K R 519K Lourenspark R 312K R 333K

R 268K R 371K Manzil Park R 263K R 231K

R 557K R 455K R 527K Matlosana NU R 185K R 481K R 608K Meiringspark R 439K R 322K

R 520K R 646K Neserhof R 419K R 210K

Nooitgedacht

R 542K R 426K Orkney Park R 451K R 510K

R 400K R 508K Orkney SP R 365K R 374K

R 447K R 541K R 445K Oudorp R 356K

R 282K R 310K Pienaarsdorp R 147K R 90K R 537K R 419K R 469K Roosheuwel R 389K

R 294K R 377K Stilfontein Gold Mine

R 383K R 489K Stilfontein SP R 351K R 387K

R 129K Tigane SP R 84K R 63K R 55K R 548K R 702K Uraniaville

R 604K R 460K Vaal Park R 430K R 365K

Vaal Reef Gold Mine A

R 519K R 662K Wilkeville R 464K R 479K

R 867K R 1 101K Wilkopies R 772K R 628K

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 11. Lending Activity

11.1 Key Findings

Lending is highly concentrated in Matlosana by area and loan size. Bonded sales are almost entirely concentrated in housing and sales over R500 000, with those loans concentrated in many higher priced housing markets. While the share of lending by each of the four major banks in the country has remained consistent, lending from non-traditional lenders doubled in Matlosana from 2010 to 2013, perhaps to make up for the lack of expanded lending by the existing institutions.

11.2 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 programs with which to make financing more accessible to lower income households. Existing lenders should take lower incomes into account by reducing finance costs.

Loans to entice the development of more middle market housing would create more integrated markets.

Programmes should also make creative finance available for rental projects as well.

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.

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 | City of Matlosana Mining Town Housing Market Report 11.4 Lending Over Time All Loans by Lender City of Matlosana, 2008 - 2013 Total value of residential bonds by lender Loan data taken from the deeds registry can 7 000M provide lending activity by lender, which has grown consistently in the area. By comparing the top chart (all loans held by 6 000M each lender) to the bottom chart (lending R 2 529M activity by lender per year), it is possible R 2 419M 5 000M to note that while the lending in the area R 2 318M

d has grown, the amount per year varies

n R 2 223M

b R 2 126M from lender to lender. Interestingly, other

a R 2 046M i 4 000M t lenders countered the trend in decreased

n e R 1 128M

i lending in 2008 and accounted for most s R 1 053M

R 1 007M of the increase in lending in the following

o 3 000M R 962M e R 924M years. These other lenders primarily include

u l R 889M

V R 1 256M companies providing home loan benefits to R 1 231M R 1 207M their employees, and perhaps were offered 2 000M R 1 178M R 1 079M R 1 133M to compensate for the drop in traditional bank lending. R 1 424M 1 000M R 1 286M R 1 164M R 1 033M R 899M R 939M Notably, Standard Bank and ABSA have

R 410M been very active showing lending activity 0M R 229M R 259M R 308M R 350M 2008 2009 2010 2011 2012 2013 that more than tripled from 2009 to 2013. Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. The following charts explore lending by Lenders ABSA bank and by suburb to understand more FNB specifically where bank investment has Nedbank been made by suburb, and what that Standard Bank may mean about financing availability for Other Lenders various development sites and scenarios.

New Loans by Lender City of Matlosana, 2008 - 2013 Total value of residential bonds by lender

R 550M

R 500M

R 184M R 450M

R 400M

d R 350M R 110M

n o R 97M

n R 300M R 95M

d i R 101M

R R 75M R 97M w R 250M

N R 45M R 137M R 46M R 25M R 200M R 80M R 29M R 38M R 24M

R 150M R 45M R 35M R 138M R 131M R 100M R 122M R 53M R 131M R 94M

R 50M R 40M R 60M R 49M R 42M R 28M R 29M R 0M R 16M 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 Standard Bank SA Other Lenders

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Market Share by Lender: All Residential Bonds 11.5 New Loans by Lender City of Matlosana, all loans, by suburb by lender, through 2013 As markets shift, different lenders respond in different ways. These maps show the previous bar charts on a map.

Tigane SP The first chart (all loans by lender_ is represented on the top map. All loans Hartbeestfontein B SP made 2013 (the second chart) is shown on the lower map. By comparing the Doringkruin SP Matlosana NU La Hoff two maps, it’s possible to see where Flimieda Wilkeville lenders invested loans in the last year Wilkopies Meiringspark Flamwood (pies in the bottom map), and how Manzil Park Stilfontein SP Khuma SP that has changed from their overall Freemanville Dawkinsville Alabama Roosheuwel portfolio in that suburb (pies in the top Oudorp Dominionville SP Jouberton Boetrand map). In Matlosana, Nedbank holds a Ellaton sizable portion of bonds made overall, yet its lending in 2013 was a very small

Kanana SP portion of all the lending there (i.e. Orkney Park Orkney SP Wilkopies). In Alabama, all lenders have Lourenspark Geyer loans there, but in 2013, only Standard

Vaal Park bank and ABSA made new loans.

Non-traditional lenders, such as private equity funds and employer 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 lenders, have more flexible regulatory 0 ABSA 1 000 FNB environments and more creative, 2 000 Nedbank competitive financing tools. It will be 3 000 Standard Bank 4 000 Other Lenders important for Government to engage ≥ 5 000 these investors to ease access to credit, lower costs of financing and share in Market Share by Lender: New Loans 2013 the commitment towards growing City of Matlosana, all new loans made, by suburb by lender, 2013 housing markets in the mining towns.

Hartbeestfontein B SP

Doringkruin SP

La Hoff

Flimieda Wilkopies Flamwood

Adamayview Stilfontein SP Khuma SP Meiringspark Dawkinsville Roosheuwel Alabama Neserhof

Oudorp Jouberton Boetrand

Ellaton

Kanana SP Orkney Park

Lourenspark Orkney SP

Geyer

Vaal Park

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

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report New Loans by Lender City of Matlosana, 2008 - 2013 The value of new bonds by lender by suburb over time City of Matlosana Standard Other ABSA FNB Nedbank Bank Lenders Adamayview 2008 R 2,190,000 R 2,884,340 R 2,333,435 R 3,876,000 R 540,000 2009 R 3,004,500 R 2,332,000 R 0 R 0 R 0 2010 R 2,398,500 R 675,000 R 1,579,576 R 3,005,000 R 0 2011 R 2,941,000 R 1,628,000 R 805,700 R 5,492,000 R 0 2012 R 2,592,850 R 410,000 R 576,000 R 3,567,500 R 660,000 2013 R 288,000 R 510,000 R 0 R 3,449,400 R 1,690,000 Alabama 2008 R 202,000 R 1,285,761 R 1,781,374 R 1,817,000 R 0 2009 R 483,000 R 1,112,450 R 618,272 R 230,000 R 0 2010 R 680,000 R 275,956 R 104,442 R 1,818,500 R 400,000 2011 R 649,000 R 325,000 R 496,079 R 1,376,500 R 0 2012 R 532,000 R 0 R 0 R 1,506,000 R 370,000 2013 R 120,000 R 0 R 0 R 514,500 R 0 Boetrand 2008 R 1,859,100 R 1,167,244 R 4,278,074 R 5,312,350 R 1,001,000 2009 R 1,149,000 R 594,500 R 532,483 R 981,000 R 1,150,000 2010 R 1,821,000 R 0 R 274,799 R 2,565,000 R 890,000 2011 R 4,325,000 R 1,318,000 R 798,576 R 5,818,991 R 784,000 2012 R 2,293,500 R 1,175,000 R 0 R 3,721,200 R 665,000 2013 R 2,260,500 R 3,531,500 R 486,000 R 3,208,400 R 500,000 Collerville 2008 R 255,000 R 774,000 R 0 R 0 R 24,022 2009 R 0 R 266,000 R 0 R 80,000 R 35,000 2010 R 0 R 0 R 0 R 860,120 R 500,000 2011 R 0 R 0 R 0 R 0 R 531,000 2012 R 0 R 0 R 0 R 700,800 R 440,000 2013 R 0 R 0 R 0 R 0 R 0 Davanna 2008 R 200,000 R 766,000 R 0 R 500,000 R 470,000 2009 R 0 R 0 R 245,110 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 389,000 R 0 2012 R 448,500 R 0 R 0 R 885,000 R 0 2013 R 490,000 R 0 R 0 R 0 R 0 Dawkinsville 2008 R 0 R 350,000 R 161,688 R 659,000 R 0 2009 R 240,000 R 229,500 R 0 R 0 R 0 2010 R 1,277,750 R 320,000 R 0 R 100,000 R 450,000 2011 R 540,000 R 195,000 R 0 R 261,000 R 300,000 2012 R 802,000 R 0 R 0 R 300,000 R 24,642 2013 R 375,000 R 535,000 R 185,700 R 939,540 R 360,000 Declercqville 2008 R 2,127,000 R 960,000 R 0 R 2,811,000 R 490,000 2009 R 980,000 R 450,000 R 400,000 R 839,000 R 510,000 2010 R 761,000 R 600,000 R 1,453,897 R 1,014,700 R 1,320,000 2011 R 1,630,000 R 1,171,750 R 230,959 R 2,303,500 R 1,015,000 2012 R 2,096,500 R 370,000 R 0 R 1,697,000 R 0 2013 R 2,591,000 R 1,082,000 R 0 R 1,963,000 R 2,060,000 Dominionville 2008 R 0 R 180,000 R 0 R 140,000 R 0 SP 2009 R 0 R 0 R 252,138 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 144,000 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 430,000 R 0 2013 R 0 R 0 R 0 R 0 R 0 Doringkruin SP 2008 R 27,669,400 R 6,060,100 R 13,490,063 R 19,812,200 R 1,830,000 2009 R 7,823,950 R 3,014,000 R 5,409,207 R 3,441,000 R 1,589,000 2010 R 16,517,045 R 2,622,000 R 5,660,732 R 9,024,500 R 2,379,000 2011 R 13,471,000 R 2,655,250 R 3,487,280 R 11,041,852 R 3,320,000 2012 R 9,187,500 R 6,098,000 R 2,893,242 R 7,652,200 R 7,330,000 2013 R 8,776,950 R 7,140,000 R 1,992,000 R 12,083,300 R 1,562,000 Elandia 2008 R 432,000 R 420,000 R 626,400 R 0 R 0 2009 R 0 R 0 R 182,166 R 0 R 0 2010 R 319,000 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 1,215,000 R 0 2012 R 828,000 R 0 R 0 R 437,400 R 0 2013 R 0 R 0 R 0 R 150,000 R 1,280,000 Elandsheuwel 2008 R 3,442,000 R 525,000 R 1,992,791 R 3,196,400 R 515,000 2009 R 664,250 R 242,250 R 101,482 R 1,105,000 R 330,000 2010 R 650,000 R 370,000 R 0 R 0 R 160,000 2011 R 0 R 290,000 R 160,000 R 786,000 R 520,000 2012 R 509,000 R 0 R 150,000 R 0 R 300,000 2013 R 1,025,000 R 1,246,300 R 0 R 1,247,000 R 0 Ellaton 2008 R 3,392,600 R 2,492,000 R 3,370,647 R 2,011,000 R 0 2009 R 854,000 R 300,000 R 981,013 R 380,000 R 430,000 2010 R 1,334,000 R 285,000 R 0 R 1,449,000 R 400,000 2011 R 462,000 R 772,600 R 627,877 R 3,908,540 R 410,000 2012 R 1,052,500 R 957,000 R 0 R 1,948,180 R 0 2013 R 352,000 R 1,464,000 R 392,700 R 3,274,600 R 650,000 Flamwood 2008 R 27,461,400 R 19,495,000 R 11,376,914 R 19,358,200 R 4,823,280 2009 R 14,314,760 R 7,876,568 R 5,421,884 R 7,867,200 R 1,820,000 2010 R 14,587,500 R 8,866,000 R 9,541,475 R 12,175,410 R 4,220,000 2011 R 10,249,600 R 8,777,255 R 3,261,140 R 10,604,700 R 7,430,000 2012 R 15,038,741 R 14,029,000 R 3,672,402 R 11,490,500 R 4,878,000 2013 R 18,222,240 R 15,229,500 R 5,654,200 R 17,304,880 R 8,005,000 Flimieda 2008 R 6,287,000 R 6,823,190 R 5,225,490 R 2,835,000 R 300,000 2009 R 3,062,900 R 2,394,000 R 1,810,285 R 650,000 R 820,000 2010 R 2,780,000 R 100,000 R 3,517,153 R 3,206,200 R 186,000 2011 R 5,007,000 R 668,000 R 1,936,377 R 6,015,000 R 3,610,000 2012 R 5,084,500 R 2,952,000 R 550,000 R 6,275,850 R 840,000 2013 R 4,807,000 R 2,652,500 R 3,864,700 R 7,009,000 R 3,770,000 Freemanville 2008 R 960,800 R 444,000 R 2,661,050 R 1,561,000 R 0 32 2009 R 323,000 R 350,000 R 492,413 R 800,000 R 610,000 2010 R 270,000 R 325,000 R 0 R 675,000 R 510,000 2011 R 540,000 R 877,700 RThe 353, 93Housing3 R 1,194 Development,262 R 0 Agency | City of Matlosana Mining Town Housing Market Report 2012 R 467,500 R 0 R 0 R 846,000 R 500,000 2013 R 540,000 R 486,000 R 0 R 2,397,000 R 0 Geyer 2008 R 410,000 R 812,000 R 1,396,488 R 2,798,600 R 0 2009 R 1,762,000 R 527,000 R 811,862 R 490,000 R 0 2010 R 0 R 0 R 0 R 140,000 R 0 2011 R 553,000 R 0 R 485,700 R 1,635,000 R 0 2012 R 1,092,000 R 807,500 R 835,000 R 2,015,000 R 0 2013 R 1,094,750 R 450,000 R 654,000 R 2,031,000 R 388,000 Hartbeestfontei 2008 R 1,805,622 R 534,000 R 1,453,820 R 600,000 R 0 n B SP 2009 R 1,257,500 R 0 R 650,000 R 427,500 R 0 2010 R 0 R 0 R 0 R 210,000 R 800,000 2011 R 2,280,700 R 0 R 316,140 R 0 R 2,200,000 2012 R 0 R 0 R 850,000 R 1,283,300 R 0 2013 R 689,000 R 290,000 R 549,700 R 654,000 R 0 Irene Park 2008 R 2,536,000 R 2,268,000 R 2,291,287 R 2,325,000 R 0 2009 R 1,079,600 R 675,000 R 0 R 0 R 340,000 2010 R 1,007,000 R 855,000 R 490,464 R 1,280,000 R 0 2011 R 2,355,000 R 200,000 R 0 R 0 R 3,290,000 2012 R 1,572,500 R 0 R 0 R 1,866,000 R 580,000 2013 R 420,000 R 2,148,000 R 0 R 2,360,000 R 1,240,000 Jouberton 2008 R 320,000 R 1,540,112 R 3,702,993 R 2,301,938 R 0 2009 R 489,001 R 714,200 R 881,584 R 107,000 R 280,000 2010 R 572,950 R 1,312,000 R 0 R 227,000 R 0 2011 R 185,000 R 1,558,000 R 180,000 R 1,055,000 R 500,000 2012 R 435,000 R 777,845 R 153,700 R 1,456,000 R 50,129 2013 R 225,000 R 460,000 R 0 R 868,500 R 920,000 Kanana SP 2008 R 901,700 R 1,973,300 R 2,280,517 R 1,300,000 R 0 2009 R 292,350 R 1,019,403 R 432,494 R 76,000 R 0 2010 R 110,000 R 1,240,000 R 0 R 828,000 R 410,000 2011 R 552,000 R 355,000 R 0 R 910,000 R 0 2012 R 160,000 R 312,000 R 0 R 385,000 R 0 2013 R 1,211,000 R 547,000 R 0 R 1,212,400 R 0 Khuma SP 2008 R 0 R 414,071 R 729,212 R 964,000 R 0 2009 R 0 R 473,500 R 468,115 R 100,000 R 0 2010 R 0 R 0 R 0 R 701,000 R 400,000 2011 R 380,000 R 70,000 R 288,000 R 555,000 R 0 2012 R 300,000 R 0 R 0 R 210,000 R 0 2013 R 482,000 R 300,000 R 0 R 365,000 R 0 Klerksdorp 2008 R 150,000 R 600,000 R 0 R 0 R 0 Central 2009 R 54,000 R 0 R 0 R 200,000 R 0 2010 R 786,000 R 1,665,550 R 1,162,811 R 1,390,300 R 0 2011 R 1,362,900 R 399,120 R 255,600 R 500,000 R 199,920 2012 R 0 R 0 R 0 R 200,000 R 685,000 2013 R 768,000 R 855,000 R 0 R 784,600 R 0 Klerksdorp 2008 R 0 R 0 R 0 R 0 R 0 Industrial 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 La Hoff 2008 R 9,690,875 R 2,875,000 R 9,022,111 R 4,338,700 R 1,155,000 2009 R 2,648,000 R 1,753,000 R 3,476,961 R 2,144,200 R 1,380,000 2010 R 5,692,050 R 2,543,000 R 3,116,223 R 11,414,300 R 1,403,000 2011 R 5,694,000 R 1,938,000 R 950,000 R 11,816,648 R 4,030,000 2012 R 7,607,200 R 1,998,750 R 540,913 R 9,035,776 R 4,020,000 2013 R 6,216,500 R 2,919,250 R 1,271,000 R 10,008,100 R 3,590,000 Lourenspark 2008 R 324,000 R 778,000 R 309,993 R 592,000 R 0 2009 R 400,000 R 0 R 341,644 R 1,114,000 R 0 2010 R 450,000 R 150,000 R 0 R 350,000 R 0 2011 R 979,000 R 350,000 R 718,200 R 820,000 R 370,000 2012 R 585,000 R 0 R 0 R 1,330,000 R 565,000 2013 R 480,000 R 0 R 0 R 0 R 60,000 Manzil Park 2008 R 1,195,000 R 944,000 R 825,085 R 537,000 R 0 2009 R 0 R 0 R 100,991 R 290,000 R 0 2010 R 0 R 370,500 R 400,000 R 0 R 0 2011 R 0 R 0 R 0 R 441,000 R 0 2012 R 722,500 R 250,000 R 0 R 500,000 R 0 2013 R 0 R 0 R 0 R 0 R 0 Matlosana NU 2008 R 5,088,139 R 0 R 585,200 R 0 2009 R 900,000 R 1,389,210 R 441,791 R 0 2010 R 0 R 0 R 565,247 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 755,000 2013 R 0 R 0 R 0 R 0 Meiringspark 2008 R 9,663,250 R 6,432,771 R 8,110,533 R 3,725,000 R 0 2009 R 3,838,700 R 700,000 R 2,021,836 R 1,711,900 R 1,860,000 2010 R 4,296,000 R 870,000 R 1,359,393 R 2,408,000 R 1,940,000 2011 R 4,248,000 R 2,798,500 R 1,540,605 R 5,095,500 R 4,643,300 2012 R 2,300,000 R 2,079,000 R 330,000 R 4,475,500 R 1,180,000 2013 R 3,073,000 R 2,943,500 R 800,000 R 7,804,300 R 1,720,000 Neserhof 2008 R 1,316,000 R 0 R 3,523,363 R 2,419,200 R 630,000 2009 R 860,000 R 0 R 1,842,931 R 550,000 R 0 2010 R 1,502,000 R 0 R 343,466 R 1,391,000 R 1,210,000 2011 R 245,000 R 290,000 R 568,633 R 2,218,586 R 1,600,000 2012 R 1,150,000 R 356,250 R 1,605,700 R 3,282,000 R 1,070,000 2013 R 4,855,654 R 262,600 R 1,493,700 R 1,850,500 R 0 Orkney Park 2008 R 0 R 594,000 R 0 R 802,000 R 0 2009 R 380,000 R 0 R 0 R 0 R 0 2010 R 255,000 R 0 R 0 R 320,000 R 110,000 2011 R 0 R 600,000 R 0 R 0 R 0 2012 R 752,000 R 0 R 0 R 360,000 R 0 2013 R 0 R 0 R 0 R 480,000 R 0 Orkney SP 2008 R 5,235,912 R 2,451,200 R 2,601,196 R 2,751,500 R 1,125,647 2009 R 1,410,000 R 595,000 R 468,497 R 258,000 R 920,000 2010 R 1,840,000 R 2,193,000 R 1,162,729 R 5,334,000 R 1,970,000 2011 R 2,078,000 R 1,146,000 R 0 R 4,159,000 R 460,000 2012 R 1,247,000 R 590,000 R 365,700 R 3,642,500 R 135,000 2013 R 2,360,000 R 1,764,200 R 180,000 R 5,015,800 R 1,095,383 Oudorp 2008 R 490,000 R 102,000 R 905,358 R 0 R 0 2009 R 0 R 0 R 453,254 R 256,500 R 40,000 2010 R 817,000 R 560,000 R 303,192 R 640,000 R 0 2011 R 300,000 R 591,000 R 0 R 0 R 35,000 2012 R 69,000 R 500,000 R 0 R 76,000 R 300,000 2013 R 899,000 R 0 R 0 R 0 R 490,000 Pienaarsdorp 2008 R 315,000 R 0 R 375,000 R 0 R 0 2009 R 0 R 153,000 R 311,122 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 250,000 R 850,000 R 318,295 R 0 R 0 2012 R 0 R 345,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Roosheuwel 2008 R 2,352,200 R 1,563,200 R 760,440 R 2,016,780 R 0 2009 R 650,000 R 1,460,000 R 865,988 R 620,000 R 600,000 2010 R 653,000 R 340,000 R 754,443 R 1,434,691 R 1,740,000 2011 R 2,279,000 R 330,000 R 757,599 R 3,554,960 R 940,000 2012 R 1,341,800 R 0 R 335,700 R 720,000 R 0 2013 R 1,610,200 R 480,000 R 1,312,100 R 4,144,200 R 260,000 Stilfontein 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 Stilfontein SP 2008 R 20,181,600 R 14,697,720 R 23,163,224 R 17,451,000 R 2,654,000 2009 R 6,293,850 R 4,042,200 R 8,406,678 R 2,905,000 R 7,977,940 2010 R 9,437,700 R 6,393,250 R 3,515,603 R 17,900,500 R 3,326,560 2011 R 10,608,750 R 9,791,855 R 3,757,776 R 23,938,200 R 3,910,000 2012 R 17,901,416 R 4,858,430 R 2,212,081 R 24,731,700 R 4,717,000 2013 R 15,699,850 R 14,750,750 R 1,421,000 R 28,038,220 R 4,110,000 Tigane SP 2008 R 0 R 0 R 0 R 90,000 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 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 Uraniaville 2008 R 0 R 0 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 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 5,000,000 2013 R 0 R 0 R 0 R 0 R 0 Vaal Park 2008 R 2,460,000 R 436,000 R 1,016,875 R 1,570,000 R 0 2009 R 547,000 R 0 R 585,000 R 210,000 R 300,000 2010 R 2,675,000 R 0 R 0 R 2,162,200 R 0 2011 R 600,000 R 0 R 921,161 R 3,845,460 R 750,000 2012 R 1,572,000 R 340,000 R 0 R 3,048,000 R 0 2013 R 1,058,400 R 0 R 0 R 1,064,000 R 620,000 Wilkeville 2008 R 1,710,000 R 1,270,000 R 773,774 R 1,540,000 R 350,000 2009 R 357,000 R 0 R 1,749,327 R 0 R 750,000 2010 R 1,726,000 R 300,000 R 435,000 R 1,137,000 R 460,000 2011 R 2,397,000 R 1,370,000 R 499,000 R 904,000 R 0 2012 R 0 R 1,564,200 R 0 R 1,301,000 R 0 2013 R 1,718,800 R 1,404,000 R 700,000 R 3,161,000 R 0 Wilkopies 2008 R 41,127,750 R 11,801,272 R 25,772,268 R 19,196,750 R 324,000 2009 R 23,394,000 R 2,152,500 R 12,543,448 R 11,879,500 R 5,854,000 2010 R 22,118,300 R 5,172,250 R 9,517,158 R 8,673,500 R 4,010,000 2011 R 17,516,400 R 3,765,860 R 5,506,566 R 18,807,200 R 8,474,000 2012 R 21,260,000 R 5,435,925 R 8,822,700 R 20,229,753 R 7,725,000 2013 R 26,898,526 R 11,316,000 R 4,132,800 R 14,429,280 R 25,879,000

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 City of Matlosana, 2008 - 2013 The value of new bonds by lender by suburb over time City of Matlosana Standard Other ABSA FNB Nedbank Bank Lenders Adamayview 2008 R 2,190,000 R 2,884,340 R 2,333,435 R 3,876,000 R 540,000 2009 R 3,004,500 R 2,332,000 R 0 R 0 R 0 2010 R 2,398,500 R 675,000 R 1,579,576 R 3,005,000 R 0 2011 R 2,941,000 R 1,628,000 R 805,700 R 5,492,000 R 0 2012 R 2,592,850 R 410,000 R 576,000 R 3,567,500 R 660,000 2013 R 288,000 R 510,000 R 0 R 3,449,400 R 1,690,000 Alabama 2008 R 202,000 R 1,285,761 R 1,781,374 R 1,817,000 R 0 2009 R 483,000 R 1,112,450 R 618,272 R 230,000 R 0 2010 R 680,000 R 275,956 R 104,442 R 1,818,500 R 400,000 2011 R 649,000 R 325,000 R 496,079 R 1,376,500 R 0 2012 R 532,000 R 0 R 0 R 1,506,000 R 370,000 2013 R 120,000 R 0 R 0 R 514,500 R 0 Boetrand 2008 R 1,859,100 R 1,167,244 R 4,278,074 R 5,312,350 R 1,001,000 2009 R 1,149,000 R 594,500 R 532,483 R 981,000 R 1,150,000 2010 R 1,821,000 R 0 R 274,799 R 2,565,000 R 890,000 2011 R 4,325,000 R 1,318,000 R 798,576 R 5,818,991 R 784,000 2012 R 2,293,500 R 1,175,000 R 0 R 3,721,200 R 665,000 2013 R 2,260,500 R 3,531,500 R 486,000 R 3,208,400 R 500,000 Collerville 2008 R 255,000 R 774,000 R 0 R 0 R 24,022 2009 R 0 R 266,000 R 0 R 80,000 R 35,000 2010 R 0 R 0 R 0 R 860,120 R 500,000 2011 R 0 R 0 R 0 R 0 R 531,000 2012 R 0 R 0 R 0 R 700,800 R 440,000 2013 R 0 R 0 R 0 R 0 R 0 Davanna 2008 R 200,000 R 766,000 R 0 R 500,000 R 470,000 2009 R 0 R 0 R 245,110 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 389,000 R 0 2012 R 448,500 R 0 R 0 R 885,000 R 0 2013 R 490,000 R 0 R 0 R 0 R 0 Dawkinsville 2008 R 0 R 350,000 R 161,688 R 659,000 R 0 2009 R 240,000 R 229,500 R 0 R 0 R 0 2010 R 1,277,750 R 320,000 R 0 R 100,000 R 450,000 2011 R 540,000 R 195,000 R 0 R 261,000 R 300,000 2012 R 802,000 R 0 R 0 R 300,000 R 24,642 2013 R 375,000 R 535,000 R 185,700 R 939,540 R 360,000 Declercqville 2008 R 2,127,000 R 960,000 R 0 R 2,811,000 R 490,000 2009 R 980,000 R 450,000 R 400,000 R 839,000 R 510,000 2010 R 761,000 R 600,000 R 1,453,897 R 1,014,700 R 1,320,000 2011 R 1,630,000 R 1,171,750 R 230,959 R 2,303,500 R 1,015,000 2012 R 2,096,500 R 370,000 R 0 R 1,697,000 R 0 2013 R 2,591,000 R 1,082,000 R 0 R 1,963,000 R 2,060,000 Dominionville 2008 R 0 R 180,000 R 0 R 140,000 R 0 SP 2009 R 0 R 0 R 252,138 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 144,000 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 430,000 R 0 2013 R 0 R 0 R 0 R 0 R 0 Doringkruin SP 2008 R 27,669,400 R 6,060,100 R 13,490,063 R 19,812,200 R 1,830,000 2009 R 7,823,950 R 3,014,000 R 5,409,207 R 3,441,000 R 1,589,000 2010 R 16,517,045 R 2,622,000 R 5,660,732 R 9,024,500 R 2,379,000 2011 R 13,471,000 R 2,655,250 R 3,487,280 R 11,041,852 R 3,320,000 2012 R 9,187,500 R 6,098,000 R 2,893,242 R 7,652,200 R 7,330,000 2013 R 8,776,950 R 7,140,000 R 1,992,000 R 12,083,300 R 1,562,000 Elandia 2008 R 432,000 R 420,000 R 626,400 R 0 R 0 2009 R 0 R 0 R 182,166 R 0 R 0 2010 R 319,000 R 0 R 0 R 0 R 0 2011 R 0 R 0 R 0 R 1,215,000 R 0 2012 R 828,000 R 0 R 0 R 437,400 R 0 2013 R 0 R 0 R 0 R 150,000 R 1,280,000 Elandsheuwel 2008 R 3,442,000 R 525,000 R 1,992,791 R 3,196,400 R 515,000 2009 R 664,250 R 242,250 R 101,482 R 1,105,000 R 330,000 2010 R 650,000 R 370,000 R 0 R 0 R 160,000 2011 R 0 R 290,000 R 160,000 R 786,000 R 520,000 2012 R 509,000 R 0 R 150,000 R 0 R 300,000 2013 R 1,025,000 R 1,246,300 R 0 R 1,247,000 R 0 Ellaton 2008 R 3,392,600 R 2,492,000 R 3,370,647 R 2,011,000 R 0 2009 R 854,000 R 300,000 R 981,013 R 380,000 R 430,000 2010 R 1,334,000 R 285,000 R 0 R 1,449,000 R 400,000 2011 R 462,000 R 772,600 R 627,877 R 3,908,540 R 410,000 2012 R 1,052,500 R 957,000 R 0 R 1,948,180 R 0 2013 R 352,000 R 1,464,000 R 392,700 R 3,274,600 R 650,000 Flamwood 2008 R 27,461,400 R 19,495,000 R 11,376,914 R 19,358,200 R 4,823,280 2009 R 14,314,760 R 7,876,568 R 5,421,884 R 7,867,200 R 1,820,000 2010 R 14,587,500 R 8,866,000 R 9,541,475 R 12,175,410 R 4,220,000 2011 R 10,249,600 R 8,777,255 R 3,261,140 R 10,604,700 R 7,430,000 2012 R 15,038,741 R 14,029,000 R 3,672,402 R 11,490,500 R 4,878,000 2013 R 18,222,240 R 15,229,500 R 5,654,200 R 17,304,880 R 8,005,000 Flimieda 2008 R 6,287,000 R 6,823,190 R 5,225,490 R 2,835,000 R 300,000 2009 R 3,062,900 R 2,394,000 R 1,810,285 R 650,000 R 820,000 2010 R 2,780,000 R 100,000 R 3,517,153 R 3,206,200 R 186,000 2011 R 5,007,000 R 668,000 R 1,936,377 R 6,015,000 R 3,610,000 2012 R 5,084,500 R 2,952,000 R 550,000 R 6,275,850 R 840,000 2013 R 4,807,000 R 2,652,500 R 3,864,700 R 7,009,000 R 3,770,000 Freemanville 2008 R 960,800 R 444,000 R 2,661,050 R 1,561,000 R 0 2009 R 323,000 R 350,000 R 492,413 R 800,000 R 610,000 2010 R 270,000 R 325,000 R 0 R 675,000 R 510,000 2011 R 540,000 R 877,700 R 353,933 R 1,194,262 R 0 2012 R 467,500 R 0 R 0 R 846,000 R 500,000 2013 R 540,000 R 486,000 R 0 R 2,397,000 R 0 Geyer 2008 R 410,000 R 812,000 R 1,396,488 R 2,798,600 R 0 2009 R 1,762,000 R 527,000 R 811,862 R 490,000 R 0 2010 R 0 R 0 R 0 R 140,000 R 0 2011 R 553,000 R 0 R 485,700 R 1,635,000 R 0 2012 R 1,092,000 R 807,500 R 835,000 R 2,015,000 R 0 2013 R 1,094,750 R 450,000 R 654,000 R 2,031,000 R 388,000 Hartbeestfontei 2008 R 1,805,622 R 534,000 R 1,453,820 R 600,000 R 0 n B SP 2009 R 1,257,500 R 0 R 650,000 R 427,500 R 0 2010 R 0 R 0 R 0 R 210,000 R 800,000 2011 R 2,280,700 R 0 R 316,140 R 0 R 2,200,000 2012 R 0 R 0 R 850,000 R 1,283,300 R 0 2013 R 689,000 R 290,000 R 549,700 R 654,000 R 0 Irene Park 2008 R 2,536,000 R 2,268,000 R 2,291,287 R 2,325,000 R 0 2009 R 1,079,600 R 675,000 R 0 R 0 R 340,000 2010 R 1,007,000 R 855,000 R 490,464 R 1,280,000 R 0 2011 R 2,355,000 R 200,000 R 0 R 0 R 3,290,000 2012 R 1,572,500 R 0 R 0 R 1,866,000 R 580,000 2013 R 420,000 R 2,148,000 R 0 R 2,360,000 R 1,240,000 Jouberton 2008 R 320,000 R 1,540,112 R 3,702,993 R 2,301,938 R 0 2009 R 489,001 R 714,200 R 881,584 R 107,000 R 280,000 2010 R 572,950 R 1,312,000 R 0 R 227,000 R 0 2011 R 185,000 R 1,558,000 R 180,000 R 1,055,000 R 500,000 2012 R 435,000 R 777,845 R 153,700 R 1,456,000 R 50,129 2013 R 225,000 R 460,000 R 0 R 868,500 R 920,000 Kanana SP 2008 R 901,700 R 1,973,300 R 2,280,517 R 1,300,000 R 0 2009 R 292,350 R 1,019,403 R 432,494 R 76,000 R 0 2010 R 110,000 R 1,240,000 R 0 R 828,000 R 410,000 2011 R 552,000 R 355,000 R 0 R 910,000 R 0 2012 R 160,000 R 312,000 R 0 R 385,000 R 0 2013 R 1,211,000 R 547,000 R 0 R 1,212,400 R 0 Khuma SP 2008 R 0 R 414,071 R 729,212 R 964,000 R 0 2009 R 0 R 473,500 R 468,115 R 100,000 R 0 2010 R 0 R 0 R 0 R 701,000 R 400,000 2011 R 380,000 R 70,000 R 288,000 R 555,000 R 0 2012 R 300,000 R 0 R 0 R 210,000 R 0 2013 R 482,000 R 300,000 R 0 R 365,000 R 0 Klerksdorp 2008 R 150,000 R 600,000 R 0 R 0 R 0 Central 2009 R 54,000 R 0 R 0 R 200,000 R 0 2010 R 786,000 R 1,665,550 R 1,162,811 R 1,390,300 R 0 2011 R 1,362,900 R 399,120 R 255,600 R 500,000 R 199,920 2012 R 0 R 0 R 0 R 200,000 R 685,000 2013 R 768,000 R 855,000 R 0 R 784,600 R 0 Klerksdorp 2008 R 0 R 0 R 0 R 0 R 0 Industrial 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 La Hoff 2008 R 9,690,875 R 2,875,000 R 9,022,111 R 4,338,700 R 1,155,000 2009 R 2,648,000 R 1,753,000 R 3,476,961 R 2,144,200 R 1,380,000 2010 R 5,692,050 R 2,543,000 R 3,116,223 R 11,414,300 R 1,403,000 2011 R 5,694,000 R 1,938,000 R 950,000 R 11,816,648 R 4,030,000 2012 R 7,607,200 R 1,998,750 R 540,913 R 9,035,776 R 4,020,000 2013 R 6,216,500 R 2,919,250 R 1,271,000 R 10,008,100 R 3,590,000 Lourenspark 2008 R 324,000 R 778,000 R 309,993 R 592,000 R 0 2009 R 400,000 R 0 R 341,644 R 1,114,000 R 0 2010 R 450,000 R 150,000 R 0 R 350,000 R 0 2011 R 979,000 R 350,000 R 718,200 R 820,000 R 370,000 2012 R 585,000 R 0 R 0 R 1,330,000 R 565,000 2013 R 480,000 R 0 R 0 R 0 R 60,000 Manzil Park 2008 R 1,195,000 R 944,000 R 825,085 R 537,000 R 0 2009 R 0 R 0 R 100,991 R 290,000 R 0 2010 R 0 R 370,500 R 400,000 R 0 R 0 2011 R 0 R 0 R 0 R 441,000 R 0 2012 R 722,500 R 250,000 R 0 R 500,000 R 0 2013 R 0 R 0 R 0 R 0 R 0 Matlosana NU 2008 R 5,088,139 R 0 R 585,200 R 0 2009 R 900,000 R 1,389,210 R 441,791 R 0 2010 R 0 R 0 R 565,247 R 0 2011 R 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 755,000 2013 R 0 R 0 R 0 R 0 Meiringspark 2008 R 9,663,250 R 6,432,771 R 8,110,533 R 3,725,000 R 0 11.6 Market Share 2009 R 3,838,700 R 700,000 R 2,021,836 R 1,711,900 R 1,860,000 2010 R 4,296,000 R 870,000 R 1,359,393 R 2,408,000 R 1,940,000 2011 R 4,248,000 R 2,798,500 R 1,540,605 R 5,095,500 R 4,643,300 Understanding market share at the local level 2012 R 2,300,000 R 2,079,000 R 330,000 R 4,475,500 R 1,180,000 2013 R 3,073,000 R 2,943,500 R 800,000 R 7,804,300 R 1,720,000 is key to understanding the potential for Neserhof 2008 R 1,316,000 R 0 R 3,523,363 R 2,419,200 R 630,000 2009 R 860,000 R 0 R 1,842,931 R 550,000 R 0 end-user finance, where gaps might exist, 2010 R 1,502,000 R 0 R 343,466 R 1,391,000 R 1,210,000 and how to make the case for more lending. 2011 R 245,000 R 290,000 R 568,633 R 2,218,586 R 1,600,000 2012 R 1,150,000 R 356,250 R 1,605,700 R 3,282,000 R 1,070,000 Lending in most suburbs of Matlosana has 2013 R 4,855,654 R 262,600 R 1,493,700 R 1,850,500 R 0 been steady over the past six years, however, Orkney Park 2008 R 0 R 594,000 R 0 R 802,000 R 0 2009 R 380,000 R 0 R 0 R 0 R 0 a couple of areas show no lending. In 2013, 2010 R 255,000 R 0 R 0 R 320,000 R 110,000 2011 R 0 R 600,000 R 0 R 0 R 0 Wilkopies received the largest lending 2012 R 752,000 R 0 R 0 R 360,000 R 0 amounts from ABSA and Other Lenders 2013 R 0 R 0 R 0 R 480,000 R 0 Orkney SP 2008 R 5,235,912 R 2,451,200 R 2,601,196 R 2,751,500 R 1,125,647 compared to all other suburbs over the past 2009 R 1,410,000 R 595,000 R 468,497 R 258,000 R 920,000 six years, perhaps a combination of resales 2010 R 1,840,000 R 2,193,000 R 1,162,729 R 5,334,000 R 1,970,000 2011 R 2,078,000 R 1,146,000 R 0 R 4,159,000 R 460,000 as indicated above, and higher sales prices. 2012 R 1,247,000 R 590,000 R 365,700 R 3,642,500 R 135,000 2013 R 2,360,000 R 1,764,200 R 180,000 R 5,015,800 R 1,095,383 Oudorp 2008 R 490,000 R 102,000 R 905,358 R 0 R 0 Comparing lending over time and by suburb 2009 R 0 R 0 R 453,254 R 256,500 R 40,000 2010 R 817,000 R 560,000 R 303,192 R 640,000 R 0 also shows which lenders perceive value or 2011 R 300,000 R 591,000 R 0 R 0 R 35,000 risk. 2012 R 69,000 R 500,000 R 0 R 76,000 R 300,000 2013 R 899,000 R 0 R 0 R 0 R 490,000 Pienaarsdorp 2008 R 315,000 R 0 R 375,000 R 0 R 0 2009 R 0 R 153,000 R 311,122 R 0 R 0 2010 R 0 R 0 R 0 R 0 R 0 2011 R 250,000 R 850,000 R 318,295 R 0 R 0 2012 R 0 R 345,000 R 0 R 0 R 0 2013 R 0 R 0 R 0 R 0 R 0 Roosheuwel 2008 R 2,352,200 R 1,563,200 R 760,440 R 2,016,780 R 0 2009 R 650,000 R 1,460,000 R 865,988 R 620,000 R 600,000 2010 R 653,000 R 340,000 R 754,443 R 1,434,691 R 1,740,000 2011 R 2,279,000 R 330,000 R 757,599 R 3,554,960 R 940,000 2012 R 1,341,800 R 0 R 335,700 R 720,000 R 0 2013 R 1,610,200 R 480,000 R 1,312,100 R 4,144,200 R 260,000 Stilfontein 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 Stilfontein SP 2008 R 20,181,600 R 14,697,720 R 23,163,224 R 17,451,000 R 2,654,000 2009 R 6,293,850 R 4,042,200 R 8,406,678 R 2,905,000 R 7,977,940 2010 R 9,437,700 R 6,393,250 R 3,515,603 R 17,900,500 R 3,326,560 2011 R 10,608,750 R 9,791,855 R 3,757,776 R 23,938,200 R 3,910,000 2012 R 17,901,416 R 4,858,430 R 2,212,081 R 24,731,700 R 4,717,000 2013 R 15,699,850 R 14,750,750 R 1,421,000 R 28,038,220 R 4,110,000 Tigane SP 2008 R 0 R 0 R 0 R 90,000 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 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 Uraniaville 2008 R 0 R 0 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 0 R 0 R 0 R 0 2012 R 0 R 0 R 0 R 0 R 5,000,000 2013 R 0 R 0 R 0 R 0 R 0 Vaal Park 2008 R 2,460,000 R 436,000 R 1,016,875 R 1,570,000 R 0 2009 R 547,000 R 0 R 585,000 R 210,000 R 300,000 2010 R 2,675,000 R 0 R 0 R 2,162,200 R 0 2011 R 600,000 R 0 R 921,161 R 3,845,460 R 750,000 2012 R 1,572,000 R 340,000 R 0 R 3,048,000 R 0 2013 R 1,058,400 R 0 R 0 R 1,064,000 R 620,000 Wilkeville 2008 R 1,710,000 R 1,270,000 R 773,774 R 1,540,000 R 350,000 2009 R 357,000 R 0 R 1,749,327 R 0 R 750,000 2010 R 1,726,000 R 300,000 R 435,000 R 1,137,000 R 460,000 2011 R 2,397,000 R 1,370,000 R 499,000 R 904,000 R 0 2012 R 0 R 1,564,200 R 0 R 1,301,000 R 0 2013 R 1,718,800 R 1,404,000 R 700,000 R 3,161,000 R 0 Wilkopies 2008 R 41,127,750 R 11,801,272 R 25,772,268 R 19,196,750 R 324,000 2009 R 23,394,000 R 2,152,500 R 12,543,448 R 11,879,500 R 5,854,000 2010 R 22,118,300 R 5,172,250 R 9,517,158 R 8,673,500 R 4,010,000 2011 R 17,516,400 R 3,765,860 R 5,506,566 R 18,807,200 R 8,474,000 2012 R 21,260,000 R 5,435,925 R 8,822,700 R 20,229,753 R 7,725,000 2013 R 26,898,526 R 11,316,000 R 4,132,800 R 14,429,280 R 25,879,000

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

The Housing Development Agency | City of Matlosana 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 29% of all registered properties in Matlosana 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 low cost 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.

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

Government can create programmes using funds pooled from a range of Government and private sector partners, which provide bonds for small properties, and offset risks through loan guarantees, loan loss reserves, and interest rate discounts. Funds can also 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 Matlosana, this might be those areas between Flamwood and Doringkruin SP, the higher priced more active markets, and Wilkeville.

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 | City of Matlosana Mining Town Housing Market Report 12.4 Equity Fills the Gap Average Equity to Average Sales Price City of Matlosana, 2013 The value of average home equity related to the average sales price Equity is the value of one’s home less Adamayview R 395K R 542K the amount owed to the lender. The

Alabama R 238K R 171K chart shows the average equity per suburb (the green bar) compared to Boetrand R 237K R 305K the average sales price per suburb. Collerville R 437K R 367K This helps to show what portion of the Davanna R 383K R 485K sales price might be paid for by the homeowners’ equity. If a homeowner Dawkinsville R 256K R 261K in Wilkeville wished to purchase a Declercqville R 402K R 480K home in Flamwood, they could sell their Dominionville SP R 129K R 118K home and apply it towards the cost of

Doringkruin SP R 450K R 682K the new home, reducing the amount they would have to borrow. Instead of R 409K R 452K Elandia borrowing over R640 000 (the average Elandsheuwel R 215K R 282K sales price), they would only need about

Ellaton R 353K R 428K R220 000 (the orange bar in Flamwood minus the green bar in Wilkeville). Thus, Flamwood R 622K R 639K equity makes homeownership in higher Flimieda R 506K R 699K priced neighbourhoods affordable, Freemanville R 379K R 417K expanding housing options. Equity

Geyer R 454K R 596K closes the housing gap for less affluent homeowners because their properties Hartbeestfontein B SP R 449K R 387K are less likely to have a bond, and Irene Park R 707K R 736K those markets have experienced more

Jouberton R 152K R 124K appreciation of value. It is important to consider this value in addition to a R 158K R 107K Kanana SP homeowner’s income. Khuma SP R 102K R 117K

Klerksdorp Central R 284K R 518K Equity invested by homeowners also reduces risk by increasing their Klerksdorp Industrial financial stake in their home. This La Hoff R 416K R 527K is the same way upper-income families Lourenspark R 400K R 333K move up the housing continuum, and is

Manzil Park R 321K R 231K now available at scale for lower-income families as well, thanks to the massive Matlosana NU R 177K R 527K Government investment in homes for Meiringspark R 404K R 439K the poor. This requires financing for

Neserhof R 490K R 419K the lower income buyers, something to explore with lender partners. Orkney Park R 423K R 510K Orkney SP R 444K R 374K While averages in such diverse Oudorp R 477K R 445K housing markets are hard to consider meaningfully, the picture does indicate Pienaarsdorp R 233K R 90K that purchasing power increases Roosheuwel R 375K R 469K (and gaps close) when equity is taken Stilfontein Gold Mine R 377K into consideration.

Stilfontein SP R 328K R 387K

Tigane SP R 128KR 55K

Vaal Park R 474K R 365K

Wilkeville R 419K R 479K

Wilkopies R 755K R 772K

R 0K R 200K R 400K R 600K R 800K Avg Sales Price Source: SA Deeds Registry via Lightstone (Pty) Ltd., 2015. All indicators reflect formal market data as reflected on the deeds registry.

Measure Names Average Value of Residential Equity Avg Sales Price 35

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 12.5 Accessing Equity closes 5 Year Equity Growth City of Matlosana, 2013 the Housing Gap and can Drive Rates of equity growth, since 2007 to 2013 Demand

Understanding the difference in equity Tigane SP growth rates on a map allows a better Hartbeestfontein B SP understanding of which property markets Doringkruin SP can be leveraged to support more new Matlosana NU La Hoff development. Many higher priced areas

Wilkeville Flamwood have experienced modest equity growth Manzil Park Freemanville Stilfontein SP (grey areas) or loss (red areas) over the past Alabama Khuma SP Meiringspark Dawkinsville five years. This may be due to increasing Jouberton Ext 20 Uraniaville sales prices (rather than amortization as Boetrand Buffelsfontein Gold Mine Dominionville SP Jouberton new buyers tend to have less equity, and Ellaton this market has been very active recently). Vaal Reef Gold Mine A The greatest equity growth over five years Kanana SP (green areas and green lines) has been in Lourenspark Geyer less developed areas with fewer sales, Vaal Park and values have accrued to the existing homeowners. Homes worth less than R500 Source: Stats SA Census, 2011, South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators re- 000 typically have fewer loans, a faster- flect formal market data as reflected on the deeds registry. growing value, and an initial housing cost Total Residential properties Avg value of Equity 0 that was low or free (thanks to Government 1 000 -100,0% 50,0% 2 000 investment in housing). Homebuyers can ≥ 3 000 reduce the amount they have to borrow through savings or the equity in their home, if they have an existing house which they Growth in Equity can sell. This lowers their monthly payment City of Matlosana, 2008- 2013 or increases the price they can afford. The change in the value of average home equity from Leverage is the practice of using this equity 2008 to increase their housing affordability. This indicator thus becomes very useful for 43% 42% meeting, and closing, the housing gap.

t 40%

u Constraints to using leverage in affordable

E housing markets include: the availability of

i 31% credit for potential buyers to pay the full

n 30% 30% value of the house; maximising the equity

d available to the homeowner; the availability

s of homes up the housing ladder to buy;

R 22%

and in the case of RDP owners; the ability f 21% o to sell Government subsidised stock (which 20% e comes with an eight-year resale restriction).

a 14% Other constraints include household

V 14% indebtedness, and the willingness of

i existing homeowners to sell their most e 10%

g important asset.

a 4% h 4%

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

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 13. Affordability Profile

13.1 Key Findings

Matlosana’s affordability ratio of 1.6 is just below the mining town average of 2.8, meaning it takes one and a half times the average municipality income to afford the average house there. Despite an above-average monthly income (R11 500), there remain large disparities among incomes and affordable housing access in certain areas within the municipality.

In some areas, sales prices used to determine affordability 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 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 careful 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’ income enables them to cover the cost of producing and selling a housing unit 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 incomes 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 amortization at 11%, with 5% down).

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Mind the Gap Table 13.4 Affordability City of Matlosana, 2013 Affordability indicators per suburb Actual affordability relies on Avg Monthly Target house Average Affordable Affordability Subplace Name understanding local household income Income price Sales Price Price Gap Ratio to determine what is reasonably Adamayview R 18K R 471K R 542K R -71K 1.2 afforded by existing residents, how Alabama R 6K R 168K R 171K R -3K 1.0 much of a gap exists and what is required Boetrand R 16K R 427K R 305K R 122K 0.7 to ensure more realistic affordability.

Buffelsfontein Gold Mine R 3K R 70K The Affordability Ratio is determined by dividing the purchase price affordable Collerville R 10K R 276K R 367K R -91K 1.3 to the average household income by Davanna R 7K R 194K R 485K R -291K 2.5 the average sales price. Nationally, Dawkinsville R 7K R 181K R 261K R -80K 1.4 it takes three times the average Declercqville R 17K R 437K R 480K R -43K 1.1 income to afford the average sales Dominionville SP R 4K R 93K R 118K R -26K 1.3 price. This doesn’t mean that families

Doringkruin SP R 26K R 688K R 682K R 5K 1.0 are paying that, it means that most homes on the deeds registry are not Elandia R 11K R 302K R 452K R -150K 1.5 affordable to the majority of South Elandsheuwel R 14K R 363K R 282K R 81K 0.8 Africans. But this indicator provides an Ellaton R 22K R 588K R 428K R 160K 0.7 important benchmark, by providing a Flamwood R 23K R 611K R 639K R -28K 1.0 sense of affordability levels, and how Flimieda R 22K R 581K R 699K R -118K 1.2 well local markets might be meeting

Freemanville R 11K R 281K R 417K R -136K 1.5 the needs of local residents.

Geyer R 14K R 368K R 596K R -229K 1.6 In Matlosana, there appear to Hartbeestfontein B SP R 10K R 259K R 387K R -128K 1.5 be gaps in affordability in most Irene Park R 30K R 783K R 736K R 48K 0.9 markets, as shown by the negative Jouberton R 4K R 101K R 124K R -22K 1.2 price gap, the amount by which Jouberton Ext 20 R 3K R 66K local sales prices are higher

Kanana SP R 3K R 91K R 107K R -16K 1.2 than what’s affordable to local residents. Price gaps in Klerksdorp Khuma SP R 3K R 86K R 117K R -31K 1.4 Central and Davanna are negative, Klerksdorp Central R 9K R 245K R 518K R -273K 2.1 perhaps the result of more recent Klerksdorp Industrial R 4K R 111K housing development, which La Hoff R 24K R 627K R 527K R 101K 0.8 drove up recent sales prices past Lourenspark R 18K R 464K R 333K R 131K 0.7 income levels.

Manzil Park R 12K R 317K R 231K R 86K 0.7 Introducing new products or strategies Matlosana NU R 7K R 179K R 527K R -348K 2.9 are more likely to be sustainable if they Meiringspark R 15K R 397K R 439K R -42K 1.1 are responsive to current residents. Neserhof R 21K R 565K R 419K R 146K 0.7 The target home price in column 2 Nooitgedacht R 8K R 201K can also be compared to estimated Orkney Park R 11K R 302K R 510K R -208K 1.7 potential per-unit construction costs

Orkney SP R 14K R 367K R 374K R -7K 1.0 to determine the amount of subsidy, which may be required to build and sell Oudorp R 16K R 422K R 445K R -24K 1.1 the units to local residents. Pienaarsdorp R 6K R 166K R 90K R 76K 0.5

Roosheuwel R 12K R 316K R 469K R -153K 1.5

Stilfontein Gold Mine R 4K R 116K

Stilfontein SP R 15K R 400K R 387K R 13K 1.0

Tigane SP R 3K R 84K R 55K R 29K 0.7

Uraniaville R 8K R 211K

Vaal Park R 17K R 457K R 365K R 93K 0.8

Vaal Reef Gold Mine A R 7K R 175K

Wilkeville R 15K R 402K R 479K R -78K 1.2

Wilkopies R 26K R 684K R 772K R -87K 1.1

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.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Mind the Gap Chart 13.5 Mind the Gap City of Matlosana, 2013 Affordability indicators per suburb

Adamayview R 18K R 471K R 542K R -71K 1,2 This chart is identical to the previous

Alabama R 6K R 168K R 171K R -3K 1,0 chart but shows bar lines to better

Boetrand R 16K R 427K R 305K R 122K 0,7 visualise differences across the area. These tables measure relative Buffelsfontein Gold Mine R 3K R 70K affordability for each suburb in the Collerville R 10K R 276K R 367K R -91K 1,3 target area in three ways: starting Davanna R 7K R 194K R 485K R -291K 2,5 with the average income (column Dawkinsville R 7K R 181K R 261K R -80K 1,4 1), it calculates the average sales Declercqville R 17K R 437K R 480K R -43K 1,1 price affordable to the average Dominionville SP R 4K R 93K R 118K R -26K 1,3 family using standard underwriting Doringkruin SP R 26K R 688K R 682K R 5K 1,0 terms (5% down, 11% for 20 Elandia R 11K R 302K R 452K R -150K 1,5 years, up to 25% of household Elandsheuwel R 14K R 363K R 282K R 81K 0,8 income, column 2). It compares Ellaton R 22K R 588K R 428K R 160K 0,7 that to the area’s average sales price Flamwood R 23K R 611K R 639K R -28K 1,0 (column 3). Column 4 (“Affordable Flimieda R 22K R 581K R 699K R -118K 1,2 Price Gap”) shows the difference Freemanville R 11K R 281K R 417K R -136K 1,5 between the average sales price Geyer R 14K R 368K R 596K R -229K 1,6 and the local target (affordable) Hartbeestfontein B SP R 10K R 259K R 387K R -128K 1,5 house price. Column 5 divides the Irene Park R 30K R 783K R 736K R 48K 0,9 two values to show the affordability Jouberton R 4K R 101K R 124K R -22K 1,2 ratio, the number of times it might Jouberton Ext 20 R 3K R 66K take the local income to afford Kanana SP R 3K R 91K R 107K R -16K 1,2 the local sales price. For example, Khuma SP R 3K R 86K R 117K R -31K 1,4 in Davanna, it takes 2.5 times Klerksdorp Central R 9K R 245K R 518K R -273K 2,1 the average income to afford the Klerksdorp Industrial R 4K R 111K average sales price. La Hoff R 24K R 627K R 527K R 101K 0,8 Lourenspark R 18K R 464K R 333K R 131K 0,7 In Matlosana, the average income Manzil Park R 12K R 317K R 231K R 86K 0,7 is about R11 500, the average Matlosana NU R 7K R 179K R 527K R -348K 2,9 target house price is R303 000 Meiringspark R 15K R 397K R 439K R -42K 1,1 (how much house that income can Neserhof R 21K R 565K R 419K R 146K 0,7 afford), and the average sales price Nooitgedacht R 8K R 201K is R480 000. Thus, in 2013, it Orkney Park R 11K R 302K R 510K R -208K 1,7 took more than one and a half Orkney SP R 14K R 367K R 374K R -7K 1,0 times the average income to Oudorp R 16K R 422K R 445K R -24K 1,1 afford the average house. These Pienaarsdorp R 6K R 166K R 90K R 76K 0,5 very high level indicators are useful Roosheuwel R 12K R 316K R 469K R -153K 1,5 when comparing affordability, Stilfontein Gold Mine R 4K R 116K to see which areas are more or Stilfontein SP R 15K R 400K R 387K R 13K 1,0 less affordable. This helps one to Tigane SP R 3K R 84K R 55K R 29K 0,7 understand how housing strategies Uraniaville R 8K R 211K need to address affordability within Vaal Park R 17K R 457K R 365K R 93K 0,8 the town, including what resources

Vaal Reef Gold Mine A R 7K R 175K or policies might be required to

Wilkeville R 15K R 402K R 479K R -78K 1,2 help fill these gaps (i.e. affordable

Wilkopies R 26K R 684K R 772K R -87K 1,1 financing, buyer subsidies).

R 20,0K R 40,0K R 0K R 500K R 1 000K R 0K R 500K R 1 000K R -500K R 0K 0,0 1,0 2,0 3,0 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 registry. When affordability is an issue, perhaps equity of existing homeowners can help fund the gap. Policies will need to encourage the sale of lower cost homes that can allow housing purchases further upstream for lower income households.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Affordable Suburbs by Average Sales Price 13.6 Mapping Affordability City of Matlosana, Suburbs by average sales price and household size, 2013 These maps show the importance of taking local household income, or purchasing power, into the understanding of affordability. The first map shows average sales prices by suburb, with the darker areas having Tigane SP higher prices. The second map shows Hartbeestfontein B SP the same area by affordability ratio, Doringkruin SP the darker areas (those with higher Matlosana NU La Hoff Wilkopies affordability ratios) showing a greater Flimieda Stilfontein SP Flamwood Wilkeville difference between suburb incomes Manzil Park Adamayview Stilfontein Gold Mine and suburb sales prices. While some Alabama Khuma SP Dawkinsville Neserhof areas appear affordable by sales Jouberton Ext 20 Oudorp Buffelsfontein Gold Mine Dominionville SP Boetrand price (such as Khuma SP), they are Jouberton Ellaton not as affordable when considering

Nooitgedacht local incomes (the darker green on Vaal Reef Gold Mine A the second map). These analyses do Kanana SP Orkney Park Orkney SP Lourenspark not take into account the indebtedness Geyer of potential buyers, an important Vaal Park factor in determining bond eligibility. Rental housing therefore, might be an important option towards providing well-located and professionally managed affordable housing in

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

Total Residential properties Sales Price 0 The areas with no dots have no residential 2 000 50 000 500 000 properties on the deeds registry – they 4 000 6 000 are farms or open space, mines or 8 000 ≥ 10 000 informal settlements.

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

Tigane SP

Hartbeestfontein B SP

Matlosana NU Doringkruin SP

Wilkopies WilkevilleFlamwood Elandsheuwel Stilfontein Gold Mine Manzil Park Klerksdorp Central Alabama Jouberton Ext 20Uraniaville Buffelsfontein Gold Mine Dominionville SP Klerksdorp Industrial Jouberton Ellaton

Nooitgedacht

Vaal Reef Gold Mine A

Lourenspark Orkney SP

Vaal Park

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 0,5 3,0 5 000 10 000 15 000 19 942

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 14. Rental Index

14.1 Key Findings

According to the 2011 StatsSA cencus, 29% of households rent in Matlosana, which is the average range of 30% amongst the mining towns in the study.

The opportunity for rental housing development within Matlosana is strong within specific areas. Those areas with greater density, modest incomes, and affordability challenges are more likely to support quality, professionally managed and 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.

Densifying 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.

Area Median Income: the percentage of the average local income to the municipal average income, which allows for understanding 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 who 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, e.g. rental, ownership etc.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 14.4 Rental Housing: Driving Rental Index an Affordable Housing Option City of Matlosana, by suburb, 2013 Those suburbs with a higher likelihood of rental demand Rental housing is one of the most efficient and effective ways to provide affordable accommodation. In most South African towns, this means backyard shacks, an important but very inefficient way of meeting housing needs. While a social housing sector exists targeting lower income families in multi-unit buildings, these are Tigane SP primarily in large metropolitan areas. Many Hartbeestfontein B SP private developers and investors are

Matlosana NU considering expanding significantly Doringkruin SP into the rental segment. If the demand is better understood, Government can Stilfontein Gold Mine Khuma SP meet housing backlogs quickly and Alabama Buffelsfontein Gold Mine affordably by promoting policies which Dominionville SP Boetrand target affordable rental housing. Jouberton With security of tenure through a lease Kanana SP agreement, residents have assurance of quality property management, consistent Vaal Park utility access and can even build up their credit history with positive rent and utility accounts. Because owners of rental housing must locate their properties competitively to ensure monthly occupancy, rental housing provides affordable access to transport hubs, jobs and community services.

Source: South African Deeds Registry via Lightstone (Pty) Ltd, 2015. All indicators reflect formal market data as reflected on the deeds registry. By bundling a set of housing market Number of Residential properties Rental Profile indicators, it is possible to find those places 0 High 5000 Low where a rental strategy might be well-suited. 10000 The map shows those areas with above- 15000 average densities, moderate incomes, and 19942 above average households currently renting, all important factors when considering the placement and promotion of rental housing. Rental Index Method Implies Weight In Matlosana, a few areas appear as high Indicator rental areas. Kanana in particular appears 50 - 80% area median adjacent to several informal settlements Median Income Affordability 25% income (the yellow squares). Two of the areas are centrally located in the middle of town while Population Density Exceeds metro average Density 25% the other two are at different points in the Housing Growing Demand 20% outskirts of town. Performance Index Percent Several conditions are crucial for the creation Households Exceeds metro average Demand 15% of successful and sustainable rental markets: Renting density, high demand, and affordability. By using existing Housing Performance Ratio exceeds metro Affordability Ratio Affordability 15% Indicators, it is possible to prioritise the average 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. 42

The Housing Development Agency | City of Matlosana 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, 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. For 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 a key component 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.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 15.7 Churn

This refers to 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 either 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 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.

15.12 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 | City of Matlosana Mining Town Housing Market Report 15.13 Leverage

Leverage is the practice of purchasing something by borrowing part of the total cost and 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 more attractive because lenders have less risk, while owners have more invested and have more potential EQUITY to invest in new housing options.

15.14 Market Segment

This refers to the aggregate of all properties within a certain rand value. Properties are aggregated by their VALUE to better understand the unique dynamics of these market segments. Values are divided into three bands: values under R250 000; between R250 000 and R500 000; and above R500 000. 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.

15.15 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.

15.16 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.

15.17 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.

15.18 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 is inconsistent. This study uses Lightstone’s (www.lightstone.co.za) proprietary valuation methodology to determine value.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report 16. Source List

• Africa Mining IQ. [sa]. Coal Mining in South Africa. [O]. Available. http://www.projectsiq.co.za/coal-mining-in-south-africa.htm. Accessed 09 February 2015 • City of Matlosana Local Municipality. City of Matlosana Local Municipality 2014/2015 Draft IDP. City of Matlosana.

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report Notes

The Housing Development Agency | City of Matlosana Mining Town Housing Market Report

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