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June 2016
News
T
he first stage of the Masiphu-
melele Phase 4 housing proj-
ect has been earmarked for
qualifying applicants living in in-
formal settlements or backyards in
the area. Construction of 227 fully
serviced sites in the wetland area is
envisioned, says Mayoral Commit-
tee Member for Human Settlements,
Benedicta van Minnen.
A total of R50 million has been
allocated for civil services and
infrastructure between September
2016 and June 2017, with housing
units rolling out between July 2017
and June 2018.
“We are doing everything we can
to ease the acute housing need inMa-
siphumelele and also in other areas
across the metro. In areas such as
Masiphumelele, where residents are
well organised on political and civic
levels, we are dependent on the sup-
port and cooperation of the residents
and community leadership.
“Too often, our projects are de-
layed because of a lack of assistance
at grassroots level, for various rea-
sons. This is to the detriment of our
most vulnerable residents and our
aim of enhancing the delivery of
housing opportunities and basic ser-
vices as a means of driving redress,”
says van Minnen.
■
Masiphumelele BNG project
The civils tender process for the City of Cape Town’s R50 million
Masiphumelele Phase 4 Breaking New Ground housing project is
currently under way.
T
his follows three successive
hikes. Seeff says that although
the better than expected April
Consumer Price Index rate of 6,2% is
marginally above the Reserve Bank’s
target range of 6%, it is slight enough
to support the decision to the keep
the interest rate flat.
There would have been no value
in raising the interest rate right now
given that the initial fears of rocketing
inflationseems somewhat overstated.
A rate hike does not serve the econo-
my and the rate hikes have done little
to deter consumer spending.
Seeff adds that in a more buoyant
economy, a higher interest ratewould
be acceptable for a fair and balanced
market. As things stand, the economy
would be better served by a stable
interest rate.
The propertymarket could dowith
a boost.
While transactions are below the
levels of 2014 and early part of 2015,
the market nonetheless remains
fairly active. “We have not yet seen
the doom and gloom predicted at
the start of the year, save perhaps for
the mining towns. Bear in mind that
therewill always be peoplewho need
to buy for various reasons, relocating,
downgrading and upgrading. Rising
interest rates and general living cost
inflation is set to remain a challenge
this year,” says Seeff.
As the year progresses and more
stock comes onto the market, sellers
will face increasing pressure to price
competitively. On the upside, accord-
ing to the latest bank indicators, the
decline in price growth seems to have
halted for now. Overall, Seeff still sees
a very satisfactory market.
All eyes will now be on the up-
coming local elections with some
expected shifts of power from the rul-
ing party. “This,” says Seeff, “should
hopefully be a strong signal that
government needs to lift its game as
poor service delivery, inefficiency,
waste and corruption do not support
economic growth. And, without a
good economy, we cannot expect a
good property market.”
■
No repo rate hike
Chairman of the Seeff property
group, Samue l See f f, has
welcomed the decision by the
Reserve Bank’s Monetary Policy
Committee to retain the repo rate
at 7% (the base home loan rate
is at 10,5%) as a much needed
boost for the economy and
property market.
Samuel Seeff