Housing in Southern Africa October-November 2016

News

Living rent free in Cape Town

M ost residents have repeatedly refused to sign lease agree- ments. Thubelisha Homes was responsible for the construction of these apartments with funding from national government. The city did not oversee the development, nor was it involved in the construc- tion. Many occupants live rent-free and refuse to enter into formal lease agreements with the city. While the city has continued to attend to repairs and maintenance of a health and safety nature. After numerous meetings and workshops some occupants showed a willingness to enter into formal lease agreements. “The city delivered letters to each unit, this was our final

The City of Cape Town took over the management of the 705 units at Joe Slovo Park a few years ago and has been engaging with the Joe Slovo Committee to formalise their occupancy.

attempt to regularise this situation. As a result, 122 occupants out of the 705 responded. Council has now agreed that we will write off R560 000 in rental arrears and services debt of more than R6,9 million, including the amount accrued up to 31 August 2016,” says Mayoral Committee Member for Human Settlements, Benedicta van Minnen. She says that in a landlord and tenant relationship both parties have rights and responsibilities. Rent collected contributes to the

maintenance of the housing stock. “The amount written off will be included in the city’s Bad Debt Provi- sion. In future, the council’s debtman- agement process will be enforced.” ■

Urban renewal trends

S outh African cities are undergo- ing a transformation as urban space is being reclaimed and former abandoned, dilapidated, buildings restored through innova- tive residential developments and contemporary architecture, which enhance the skyline. Urban renewal also enhances property values and creates profit- able opportunities for residential, re- tail and commercial property devel- opers and traders. It improves both business sentiment and perceptions, encouraging a sense of civic pride, as well as attracting investment. The South African CBDs’ focussed regeneration is also a clear sign that the country’s urban population is continuously expanding. A ccording to Wayne van der Vent, co-founder of Quoin Online, an online property trading portal, “Ur- ban renewal leads to a substantial increase in overall property prices, while urban population growth places an increased demand on infra- structure and transport structures.” In Joburg’s CBD, Braamfontein and Newtown nodes there is clear evidence of inner-city renewal with much of downtown upgraded and boasting a medley of arts, entertain- ment, retail, innovative hubs and

almost 7 000 over the last 16 years. Night-time economy – the central city has steadily been moving to- wards a 24/7 economy over the past five years asmore people areworking in businesses such as call centres. The urban population continues to expand and an increasing number of the residents and visitors are look- ing for after-hour activities. There is now a higher demand for retail with longer trading hours, late-night restaurants and delicatessen-type food stores. Office sharing – is on the rise in the CBD as small businesses and freelance workers continually hunt for rent space within a larger set-up where they can share facilities while working in a professional environ- ment. “This is a situation also beneficial to landlords looking to increase the number of tenants. ■

housing. The South African Property Owners Association says the Johan- nesburg commercial market showed the highest development pipeline ever recorded, with various flagship developments scheduled for comple- tion over the next two years. Durban is also undergoing major regeneration with reports indicating future projects including the recla- mation of areas such as Albert Park, the CBD and Victoria Embankment. In Cape Town, the CBD is changing its entire footprint. According to Cape Town’s Central City Improvement District (CCID), official valuation was almost R24 billion in the 2014/2015 financial year, an impressive growth from just over R6,1 billion in 2006. Game-changing trends of a grow- ing urban population include a live- work-play destination where the residential population is estimated to have grown from around 750 to

October/November 2016