Housing in Southern Africa October 2015

H O U S I N G in Southern Africa

ED’S NOTES

Catalytic Projects…. will catalyse the housing sector It has been an interesting and exciting month for the housing sector with the Minister of Human Settlements, Lindiwe Sisulu announcing that government has identified 77 Catalytic Projects that will roll out 1,2 million housing opportunities.

THE TEAM

EDITOR Carol Dalglish housing@crown.co.za ADVERTISING Brenda Grossmann brendag@crown.co.za DIRECTOR Jenny Warwick

T his bodes well for residential developers, builders, contrac- tors and supply chain manu- facturers across this massive market segment. The reshuffling of govern- ment Development Finance Institu- tions and a new Housing Finance Corporation being established, will galvanise development and delivery. With all the sector key stakehold- ers keen to get going after the abys- mal dip in housing delivery, it is all systems go with Sisulu at the helm. D i rec to r Gene ra l , Thabane Zulu as Acting CEO of the Housing Development Agency (HDA) has been tasked with overseeing the massive roll out. The agency’s new expanded mandate means a one-stop shop for developers and contractors providing services to the National Department of Human Settlements. And, the Minister has promised that her team are willing and able to assist devel- opers. On that note, the South African Affordable Residential Developers Association is eager to deliver afford- able housing and FLISP subsidy units to assist Sisulu in achieving govern- ment’s 1,5 million housing target by 2018. The association represents 80% of housing developers inGauteng and is gaining ground in other provinces. Pierre Venter, Banking Association of South Africa, took the opportunity in his presentation at the National Department of Human Settlements Developers and Contractors Work- shop to discuss the impact on the sector since its heyday in 2010. Some of the products that were supposed to improve delivery never really took off. This includes the Finance Linked Individual Subsidy Programme aimed at assisting low income earners to qualify for home loans, or the Mort- gage Default Insurance scheme that would assist banks to provide loans in this niche sector and government’s insurance scheme would pay out in the event of defaults. There is awilling and able banking

sector ready and poised to do what they do best – lend funds and with South Africans passionate about owning their own homes, there will be no shortage of applicants. Most of the developers who at- tended the Minister’s workshop were at the 7 th annual International Housing Solutions Affordable Hous- ing Conference. The event held at the Johannesburg Country Club had an impressive line-up of guest speakerswho dealt with the trials and tribulations facing the sector. Global equity funder I H S partneredwith the developers’ favourite banker, Manie Annandale fromNedbank Affordable Housing, who sponsored the event. Mo t i va t i ona l s peake r Vu s i Thembekwayo started off his presen- tation saying, ‘What got you here…. won’t get you there’. His snippets about companies who thought it was business as usual bit the dust and products that were once leaders in technology failed to broaden their horizons and find new ways to oper- ate. On that notewe continue to listen to your comments and suggestions. Enjoy the read!

PUBLISHER Karen Grant DESIGN

Colin Mazibuko CIRCULATION Karen Smith

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Carol Dalglish • Editor

AVERAGE CIRCULATION (FIRST QUARTER 2015) 3768

Govan Mbeki Awards 2014 - Best Media - Housing in Southern Africa

October 2015