Chairperson’s Welcome
Dear Members, Stakeholders, Practitioners, and Industry Affiliates
As we enter April, the real estate industry has been faced with several challenges.
THE REPO RATE
The repo rate increase was expected, though not by as much as 0.50% basis points, and there is uncertainty as to whether this will be the last hike in the current cycle.
This latest decision by the MPC has far reaching consequences which I discussed in an article for the Property Professional, the main takeout being the effect the repo rate hiking cycle has on affordable housing. While there are many economic arguments for the recent hiking cycle, the bottom line is that homeowners in the affordable market segment are feeling the pressure to make ends meet, a pressure that has now only increased. One can expect to see more sales within this sector of the market and ask where these homeowners will end up. The most likely outcome is return to the rental market which would be a set-back for overall home ownership. First time home buyers are likely to be most adversely affected as affordability becomes constrained.
THE RE-OPENING OF THE PRETORIA DEEDS OFFICE
The sudden decision by the registrar to close the Pretoria Deeds Office, the largest in the country, indefinitely came as a shock to the industry on Wednesday 5th of April. Industry members where quick to reach out to Development and Land Reform, which has since announced that the Deeds Office will be reopening at its new location on Monday, the 17th of April. Management at the Deeds Office has apologised for what it refers to as ‘inaccurate communication’.
MINISTER OF HUMAN SETTLEMENTS INCREASES SPENDING ON HOUSING
Mmamoloko Kubayi, Minister of Human Settlements, has announced several far-reaching changes and government spending on social housing, enhancements to new RDP housing and changes in terms of emergency housing.
Mmamoloko Kubayi announced on Friday that her department was ready to kick off a 29.7% increase in subsidy quantum for the 2023/2024 financial year. This increase is ostensibly to speed up the process she explained, “The situation is such that we are compelled to affect another increase; otherwise, more projects will be left incomplete, and construction companies will find it hard to survive. We believe that, with these amendments, we can accelerate housing delivery and avoid abandoned projects”.
- BNG (RDP) services and top structure will move from R196 887 to R255 364;
- House for persons with disabilities will move from R209 071 to R271 166;
- Military veterans’ houses will move from R240 607 to R312 069;
- First Home Finance will move from R130 505 to R169 265; and
- Social housing will move from R327 667 to R424 984.
The Minister also announced that RDP houses built from 2023/2024 would be fitted with enhancements to help improve living conditions for beneficiaries such as installing solar kits to allow for the provision of basic electricity, and fitting burglar bars to houses provided to disabled persons, to shield the beneficiaries from break-ins and theft.
EMERGENCY HOUSING
Provincial government departments and municipalities will no longer receive emergency housing grants. “We believe that this approach will enhance collaborative planning among the three spheres of government in anticipation of disasters and simplify the response so that we optimise funds allocation across the country and improve the response time”, the minister explained.
INDUSTRY INVITE TO JOIN THE REBOSA BUSINESS LEADER PROGRAMME
Charter Academy is reaching out to the industry to participate in the next RBL programme by sharing their experience and knowledge.
ANNOUNCING THE SAPOA PROPERTY DEVELOPMENT PROGRAMME 2023
SAPOA has recently released the survey, focusing on the impact of loadshedding on commercial offices, industrial spaces, shopping centres, hotels and residential properties. Below is an excerpt from the report:
