The new comprehensive plan for housing delivery is set to provide a major boost to the South African economy.
According to Housing Minister Lindiwe Sisulu, the plan was devised with a series of objectives in mind, of which housing delivery itself is only one. "Housing represents the single biggest investment that most families make, and as a result, housing is inextricably linked to the national economy. However, what we have seen is that demand for well-located, well-serviced properties has come at the expense of those that, for historical reasons, are less well-positioned and have few or no services. This has created an economic duality in the property market where one segment is booming and the other is in a slump."
This legacy has created another duality: between those who can choose to live where they want in a dwelling of their choice and those who are forced to live in one particular area in one particular type of dwelling. "In that instance, it's not hard to see why large sections of the property market are not aware of the potential value of their investment -or who are simply unable to unlock that value. Yet, if handled correctly, housing becomes an asset - and an essential element in the creation of personal wealth," explains Sisulu.
Over and above that, structured development in a sustained and organized way leads to job creation. "Obviously, we are referring to builders, plumbers and contractors, but there are other spin-offs. For example, retail outlets are seldom far behind housing developments. Not only do they need construction, but they also have to employ staff to service residents," says Sisulu.
It should also be borne in mind that housing does not take place in a construction-only vacuum. "Government has a responsibility to ensure that there are essential services, such as water, electricity, roads and transport," says Sisulu. "It makes financial sense to target areas where land is available AND where there is an existing infrastructure that can be used as a foundation to be upgraded and improved."
The plan is a result of attention to all of these factors. "What we want to do is fairly simple," says Sisulu. "We plan to identify primarily state land that is suitable for development but is currently under-utilised, in areas where we can piggy-back on existing growth. We want the private sector to build dwellings there, the type of which will be dependent on the area. We want people to buy those dwellings, whether immediately or eventually, and realize that they are investing in their future. We want them to make improvements and when the time comes, we want them to have the option of selling those dwellings at a profit. This is essentially how the first economy property market has worked. Our strategy will close the gap - to the benefit of all, not just lower or middle income groups.
A better overall impression and better surrounding neighbourhoods lead to an increase in property values, and provide a basis for the financial independence and dignity of residents. "Government wants to move away from providing basic shelter," says Sisulu "No one deserves to live in an informal settlement, which is why we're committed to upgrading them or phasing them out in consultation with residents.
If we can turn these settlements into sought-after areas, we again demonstrate that a house is an asset. It's not inconceivable: there are many of areas that ten years ago, few would've thought would be desirable - and yet, they command premium prices now.
Our strategy will combine the abilities of the entire Government, the capacity of private sector, and the innovation and commitment of residents to change the face of housing in South Africa within a decade."
However, there are misconceptions about the nature of the new housing strategy "Let me tell you what the new plan is NOT," says Sisulu. "It is not about building shacks right next door to multi-million rand developments. It is not about expropriating property. It is not about creating a false single property market."
It is about redressing the housing situation in a sustainable and financially viable way. It's about creating a country where people can live in comfort and dignity, and where they have more choices and their mobility is not constrained. Our strategy places the emphasis on the choices of individuals about their dwellings and their purchase and rental options, and utilizes our resources to make those dreams come true."
We will maximize the efficiency of existing infrastructural networks, and extend services into new areas. We will make it easier for those in need to access the benefits provided by Government, whilst providing private sector with the security they need in order to be our partners.
It's about creating pride where none existed, generating wealth where before there was no potential, and it's about building organized towns and cities where everyone can be productive."
Issued by
Thabang Chiloane
Cell: 082 888 8783
September 9, 2004