Sep 18, 2012
South African property sector stands R4.9tr strongBack
Cape Town|Johannesburg|Tshwane|Africa|Charter|commercial property|Housing|Industrial|Measurement|Africa|South Africa|Retail|Services|Jess Cleland|Mashilo Pitjeng|Musa Ngcobo|South Africa|Measurement
The majority of privately held residential properties (almost 60%) fall within affordable areas, with the South African deeds registry indicating that 3.5-million of the total of six-million residential properties were valued below R500 000.
Formal dwellings comprise almost seven-million of the total housing market, including formal, informal, traditional and other, of 10.8-million units.
The research was carried out to assess the size and composition of the property industry in South Africa to measure the different services and activities within the sector, as well to determine whether the black economic-empowerment transformation figures were in line with the scorecard.
“The aim of the research is to create a consolidated body of knowledge about the property industry in order to foster a consistent understanding of the sector for the purposes of measurement and evaluation of a number of transformation charter imperatives,” PSCC chairperson Musa Ngcobo said at the launch of the research report in Sandton.
The report, which provides a snapshot of the property sector at the end of 2010, placed emphasis on the sectors or segments where the greatest activity existed, namely residential and commercial property ownership.
The research found that the nonresidential property sector, which comprised retail, office industrial, hospitality, leisure and other was valued at about R780-billion.
Also speaking at the launch, banking firm Absa property assessment specialist Mashilo Pitjeng noted that the most challenging part of the research was in sourcing information from the public sector, which was valued at about R570-billion.
“Although we have worked with the Department of Public Works in the national segment of public property, which is valued at about R188-billion, we found that the reliability of information gathered from provincial government and local government was questionable.
“Trying to find reliable information which was relevant and updated was much more difficult than the [commercial and residential] sectors and we had to work with the best information we could source, which is why we ended up going through the six sources of information,” he noted.
This included the municipalities of the City of Johannesburg, City of Cape Town, Ethekwini, Tshwane, Ekurhuleni and Buffalo City, which together with the estimate of the some-200 district municipalities, equated to about R37-billion in property holdings.
Further, the research estimated that State-owned enterprises added about R6-billion to the equation.
“This report represents the start of an ongoing process and would be presented to industry as a working document. We encourage participation and collaboration from the property sector to not only strengthen the data contained in the report, but also to develop future updates,” IPD research director Jess Cleland concluded.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Construction News
Investment holding company RMB Holdings (RMH) plans to create a property investment business and is acquiring a 25.01% interest in property group Atterbury. The only remaining outstanding condition to the acquisition was approval by the competition authorities.
Updated 10 minutes ago Postal services in South Africa risk being disrupted later this week as a union says nationwide strike action is going ahead. The Communication Workers Union (CWU) last week threatened to strike on May 5-6 to demand higher annual pay rises for South African Post...
Updated 23 minutes ago South Africa's Public Investment Corporation (PIC) would invest R70-billion ($5-billion) over the next three to five years to help stimulate economic growth and job creation, Deputy Finance Minister Mcebisi Jonas said on Wednesday. The PIC, which manages South...
Updated 29 minutes ago The Organisation Undoing Tax Abuse (Outa) has said it doubts claims by road authorities that 300 000 people had taken up the etoll discount dispensation of 60%. Chairman of Outa, Wayne Duvenage, said: “Anything short of R2.5-billion collected or committed for...
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...